How to Semi-Retire Early

November 8, 2024

Retirement has gotten a little more complex in the past few years. It is no longer a simple matter of working normally up until a certain age and then stopping completely. Many people are increasingly adopting a more gradual approach, leading to the idea of semi-retirement. This is a transition stage between full-time work and full retirement. It enables people to continue working for a while, at reduced hours, generating income while still being productive for as long as possible – or as long as the individual considers suitable. LRVS Advisory explains semi-retirement and how it could be the perfect solution for people who are not ready to retire, but also don’t want to continue working full-time. 

Semi-retirement can best be described as any period of life before full retirement where a person works part-time, enjoying effective retirement for the rest of the time. This period can continue as long as you want. Perhaps you would prefer to remain semi-retired for the rest of your life. Alternatively, you could keep going with your part-time schedule until you feel that you either can’t handle work at all anymore, or you are finally ready and able to enjoy full retirement. 

Semi-retirement is intended to alleviate the financial pressures involved with full retirement. It is best to have enough financial resources stored up to facilitate your reduced work hours, and it would help if the part-time work you do is something you really enjoy. Semi-retirement will look different for everybody; it is a customizable lifestyle that can be planned and designed to suit each individual.

If you are a high-net-worth individual and you think semi-retirement may be for you, there are several different models you could choose from.

If you are a business owner, you could step back from an active role in the running of your company. You could put a succession plan in place that enables you to hand the reins to someone you trust, while you stay on in a consultative role or as a board member.

If you have acquired a great deal of experience and expertise in your field, you could step out of any permanent management or operational positions and offer your services as a consultant. Another option would be to take on a low-stress part-time job. You probably won’t be too concerned about the salary – the point is to remain productive for some of the workweek while earning some extra money to supplement your retirement savings. Another option would be to launch a new, smaller business that requires less of your time and energy but still generates some income. For example, maybe you’re a fishing enthusiast, so perhaps the time has come to open your own bait shop.

Any one of these models could work. It depends on what suits you and what plans and provisions you have put in place during your career so far. Work with a family CFO at LRVS Advisory to help you determine the best way forward.

The biggest benefit of semi-retirement is that you can get the best of both worlds. On the one hand, you can enjoy most of the advantages of retirement. On the other hand, you can remain active and involved in the working world – to whatever extent you prefer – and keep earning money so you are not completely reliant on your retirement savings. If you want to continue working at something you love, while also earning extra money, but easing into the pleasures of retirement, semi-retirement may be what you need.

If you are considering semi-retirement, the first thing to do is speak to a financial advisor. Retirement Planning is indispensable whether you are planning complete retirement, semi-retirement, or both. The best approach is to continue maximizing your retirement provisions as if you were building up to full retirement. Then, set a date for the start of your partial retirement, while also having a clear vision for how you will spend your time once your semi-retirement begins.

How can you go into a state of semi-retirement early? Why wait until you’re in your 60s to semi-retire when you can start as soon as possible? It is definitely possible to do this, but it requires careful financial planning. You would need to ensure that you have sufficient financial resources in place to support you when you step down from full-time work. Careful savings and investments can facilitate this. The best thing to do is speak to a financial advisor or family CFO at LRVS Advisory. Contact us for more information or to make an appointment with one of our financial planning experts.  

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