Semi Retirement: Why You Shouldn't Fully Retire

[@Fioneers]

Learn how to design a life that you love today (don't wait until you hit an arbitrary number): kzbin.info/www/bejne/aJqVZmmnfcmrrNk

[@gordonallen9095]

Just went back to work part time after three straight years of being retired. I got bored doing nothing. The job is flexible. I work two to three days a week, and I can take myself off the work schedule when I want to travel. Plus, the extra money I earn stacks up in my bank account because my retirement savings more than covers my expenses. I'll be using that money for travel. It also gives me structure, something to do, and keeps my mind and body active. For me, being semi retired was the way to go.

[@Fioneers]

Thanks so much for sharing. That sounds like the ideal arrangement with ultimate flexibility. Did you have a hard time finding such a flexible job? I know other viewers and followers have expressed that concern.

[@Mary-tj5qx]

agreed. This is my plan, starting next year at 58. I know that without the contrast of work, 100% free time won’t feel so valuable. I need a little bit of work, part-time work doing something that totally aligns with my values but will not pay well. that work will provide contrast for all of the travel and fun i plan to have!

[@Fioneers]

Amazing! Good for you! Are you planning to do the same type of work but at reduced hours, or something entirely different?

[@linhchau9788]

I agree with you. So do I starting next year at 57, I'm gonna semi retired request to stay at my current job part time 3 days. I'll have plenty of time to do the things that I have been putting off for year. Thanks

[@verb0ze]

The thing I love about this approach is that you can coast into full retirement if you so choose. I've seen folks jump from full work to full retirement and they ended confused with what to do with their time. It sounds good on paper to never ever have to work again, but the lived experience is not all that it is made out to be

[@Fioneers]

100%! That drastic shift from FT work to no work at all can be really challenging. Are you coasting or planning to so that the transition is smoother?

[@antoniobrown1616]

I have been strongly considering this approach recently.

[@Fioneers]

What would semi retirement look like for you? Reducing your hours, finding a new job, or something else?

[@antoniobrown1616]

@Fioneers Doing something which would bring me joy. Something nothing like what I am doing in Corp America. Maybe working with the homeless or at risk youth.

[@Fioneers]

Incredible! That makes sense and very meaningful

[@briand4000]

I'll be 60 next month. (Yikes!). I can retire now, according to all the calculations but a MAJOR concern is the cost of healthcare. I do not want to work past 62 but I am becoming very motivated to start paring away some hours per week, then a day per week, then perhaps two days per week, over the next two years. I'll still have company sponsored healthcare, albeit at somewhat diminished amounts once officially "part time" as per company regs. Then, I'll have to fully fund healthcare for my wife and I after fully retiring until age 65 and medicare eligible. I really like my work which cannot be done anywhere else (national security defense research). Finding a balance for the next two, (perhaps three...?) years is the challenge. I concur that just quitting entirely...from full throttle to hard stop...will be more of a shock than I'm willing to entertain. Great guidance! Thank you.

[@Fioneers]

They say 60 is the new 50, right? Have you looked at the cost of getting an ACA plan through healthcare.gov or a state marketplace (if your state has its own marketplace)? When we switched to a state plan when we quit our traditional jobs (to coast and have more freedom), we were surprised at how reasonable it was. We paid a little more than an employer sponsored plan, but not that much. And depending on how much taxable income you have, you may also qualify for subsidies. Either way, I think slowly reducing your hours is a great strategy and will help with the transition.

[@briand4000]

I've taken a quick stab at plans on the marketplace here in New Mexico. Worst case, I see about $1200/mo for us. Subsidies will be available, but my wife is a realtor and can have a mega buck month followed by months of nothing. It's impossible to predict/forecast for subsidies. So, the prudent move is to plan for the worst, so we won't be surprised! Thank you again, I really like your approach to easing into this major life transition.@@Fioneers

[@Fioneers]

Totally get the unpredictability. You’re very welcome! 😊

[@betterme479]

Food for thought, thanks for this video!

[@Fioneers]

My pleasure! I’m glad it gave you something to think about. Semi retirement is definitely worth thinking about.

[@tianaallgood8860]

Thanks for the video! Watching your videos is helping me let go and not be so gung-ho about saving for early retirement. I've bucked hard against my generation's free floating idea that life isn't about money. They seem to fulfill one aspect of coast F.I.R.E, that's the finding what they like to do but ending up destitute when they're older. However, I took the opposite and have only followed money. I like this option because it brings a happy middle. It always amazes how easy it is to fall into an extreme when a good middle exist.

[@Fioneers]

You’re very welcome. We too can relate to the idea of falling to one extreme or the other. The older we get, the more it seems like balance is so important. And the thing we love about Coast FI or Coast FIRE is that it provides the best of both worlds.

[@DoggyU]

Great video Jess! Love it!

[@Fioneers]

Thank you!!

[@RandomJane104]

This is what I'm planning on doing. I'm 50 and plan to work 8 or 9 more years full-time. Then if I have enough saved up I plan to switch to part-time time work. My husband is younger so I can go on his insurance. I've been the main breadwinner for decades and have worked many more hours than he has. I'm really feeling the burnout. I have to work full-time for at least 5 more years to boost my social security. After that I will reasess each year to decide if I continue with full-time time or do part-time instead.

[@Fioneers]

That’s an exciting plan. Have you considered going part time sooner? It really depends on your finances and how much you feel burnt out, but I know that when I (Jess) was considering going part-time initially, there were a lot of mental blocks, and I could have actually gone part time a lot earlier if it were just based on the money, and not on some of my assumptions that I needed to work full time or earn $x.

[@RandomJane104]

@@Fioneers I feel I must work full-time at least 5 more years to get my income average up for social security. I am the breadwinner but not a high earner. Income the first 20 years of my career was $35k or considerably less due to only working part-part time in college at minimum wage. At 55 I'll see where we are and may hire a financial planner to decide if it's possible to drop to part-time. The decision may also come down to the health of my parents and their needs. I'm an only child. My parents are in their early 80's/late 70's and they live apart (divorced) in my hometown 2 hours away from me. This is another reason I think I may need to plan to drop to part-time time in the future rather than busting my rear full-time for another 10 or 12 years. My parents may need me and I won't be able to help if I continue working 45+ hours every week. That seems to be what my current job expects and it's getting old. I'm fortunate that I began investing early, didn't have children, and have always lived within or under my means. I will likely be on my own for my later years, whith no children or close family, but I would like to be there for my parents as much as I can.

[@Fioneers]

That sounds like a good plan and that your thinking of the major considerations and yes, I can’t imagine working full time while also taking care of parents.

[@mikeb5925]

I hate traveling and more than happy to continue working and staying put. The idea of cutting hours to enjoy more free time at home while working longer into retirement sounds so appealing to me.

[@Fioneers]

I get that. While we enjoy traveling most of the time, there are definitely moments when I just want to stay put. Awesome. Enjoy semi retirement!

[@trex860]

I’m 68 and I’ve worked for 52 years. I’m done.

[@Fioneers]

That is a long time to work. Congrats on a long working career, and I hope you enjoy retirement to the fullest.

[@trex860]

@@Fioneers Thank you very much! I enjoyed your presentation!

[@7SideWays]

Lots of great points. Hard for some of us to justify work at all when the first $ is taxed at 30% altogether.

[@Fioneers]

30%?! That is high. Where are you located that you’re paying 30% on the first dollar? I tend to see taxes as inevitable and try to live my life without thinking about taxes, but the key word is try. It definitely influences some of our decisions, but at the end of the day, if I need the $0.70 to pay my bills, I’ll work regardless of taxes.

[@Roxy-qn3my]

After working 38 years I never want to work again.

[@Fioneers]

Totally get it. Semi retirement isn’t going to be everyone.

[@stevedavenport1202]

Yeah, honestly, retirement should mean doing what you want to do. I think there are people who would be deeply satisfied doing absolutely nothing. But, for the rest, some low stress work might be a good ootion.

[@Fioneers]

I like it. Maybe we just need to redefine the word “retirement.”

[@RobLindström]

I have worked 44 years so I could retire and do nothing or anything. I think you need to readjust your idea of retirement. I like planting flowers. Anything with a schedule or time stamp is work.

[@Fioneers]

Planting flowers seems like a great hobby. Have you already retired? If so, there’s nothing wrong with not working - not everyone needs or wants to work forever. I imagine we’ll eventually stop working, but it can help transition to no work. Congrats on working 44 years. That’s an accomplishment. Is there anything else you are looking forward to doing in retirement?

[@RobLindström]

I always told people work was getting in the way of my life. The most important thing is to keep moving, a little each day, but if you sit and watch tv all day you will die fast. Don't bust your but but do something now and then a little. Volunteer, garden, woodwork, hiking. A body in motion stays healthy.

[@Fioneers]

That sounds like a great approach to life 👍

[@GIUL7301]

I still work my residential contracting business at 68 Started colleting SSI at 66-4. Just under 400 hours in 2023. Netting $34,000. It helps. Ill stop when the the excitement ends. It pays for traviling and hoppies. Had to give up dirt bike riding. Damn!

[@Fioneers]

I’m sure that’s hard to give up riding your dirt bike. 400 hours per year seems like a really good balance. I’m curious, How long have you been working those hours, and did you adjust down to those hours slowly?

[@GIUL7301]

In my full retirement year I adjusted down to a little over half a year about 1,200 hours My wife and I keep working to pay off our mortgage. We haven't paid CC interest since 2018. Three of my last years I maxed SSI withdrawal amount which really helped my 35 year payout figures. Our yearly home tax and insurance is $2,380.00 a year. Get dept free. If you can. We have no worries Our current yearly SSI payout is $74,180.00. Mine was only a few hundred under the max. AGAIN, GET DEPT FREE.

[@davidanderson7389]

I left a great but for me was a psychologically toxic job and retired, now I’m kind of flailing though. I wouldn’t mind a part time gig, but haven’t found anything yet. Volunteering is okay, but even then I have to travel and be somewhere at a certain time, and many times involves some sort of manual labor.

[@Fioneers]

I get that. What type of part time work sounds interesting to you? Would you want to do similar work that you did prior to retirement, but without the toxic part (meaning, was it the company or the work you were doing that was toxic)? Or would you want to do something entirely different? If you don’t want to travel or have specific time commitments, maybe you could pursue contract work, or a job that is remote and has flexible hours.

[@cronicas_imemoriais]

When you say 1-2% is that yearly? Or 1-2% of the growth of your portfolio?

[@Fioneers]

1-2% yearly. Since the typical historical return of a stock market portfolio is 8-10%, it still allows your portfolio to grow most years even with withdrawing 1-2% per year.

[@cronicas_imemoriais]

Nice, that makes it very easy to calculate when you can retire for good, even though I actually am more in favor of this partial retirement than to full retirement@@Fioneers

[@Fioneers]

Ahh, yes. The 1-2% shared in this video is for semi or partial retirement. For full retirement, we generally recommend 4% each year of your portfolio.

[@elindbe3]

This sounds great but I'm not quite sure how it works in practice. For example my ideal lifestyle involves not working more than 20 hours a week and taking 2 months off per year to travel. That seems to eliminate pretty much all available positions in my career path. I suppose I could take a low paid part time job with flexible hours but that doesn't seem like a good use of my time. Perhaps some kind of contracting or project-based work would satisfy these requirements but how do you find this without spending full time hours looking for new contracts/projects? Anyways this would be a great idea for another video.

[@Fioneers]

Thanks for the video idea. We’ll add this to the list because I’m sure others could also benefit from this. I don’t think you need to take a low paid part time job to have the flexibility you are looking for. One option to explore would be to see if your current employer would accommodate flexible hours. Finding a contract job is one of most obvious paths to finding a flexible job with reduced hours and extended breaks. In one of our livestreams with a panel on making work work for you (the one about with your current employer: kzbin.infoRkT85WaWRTw?si=jNIXq4EJSFA81ZSI), Danielle, one of the panelists, had negotiated a similar arrangement with flexible hours and extended breaks. If you haven’t seen this one, it may be worth a watch for some inspiration in the meantime.

[@Laura-kb5sr]

Yeah, for you, I wonder about contracting or project-based work--maybe work without intense responsibility for keeping things afloat, which may feel like major stepping back. I work in healthcare and have two "PRN" ("as needed") jobs, plus I'm signed on with an editing agency for freelance/contract work. For my healthcare jobs, I'm required to work two weekend days per month, but when they have more need (because of others going on vacation / calling out or because of variations in patient numbers), they ask if I can work more, and if I can, I do. For the editing agency, it's based on variation in number of jobs. The idea has been that two times each year (each spring and fall), I choose weekends that leave me 5-ish weeks off to travel with my husband, plus take a shorter vacation with our now-grown kids. A downside is uncertainty. When I started this, with just one PRN job (and no editing), I went from being needed 3-4x/week to not at all, and I freaked. Then I got the other jobs and signed up to way too much work, then I felt burned-out. Now I'm trying to get it evened out. Then plot twist, my father recently had a new health problem (my parents live nearby), so my husband and I are unsure about the next extended travel trip--but the additional nonworking time is nice so I can support my parents more when they want/need it (which they sometimes do, sometimes don't). My husband is a scientist, and his work is pretty independent and mostly remote. We get healthcare through his job, and he can get retirement health insurance for the whole family after 25 years of full-time work, which is coming up. Right now he's officially full-time but is allowed to take a reasonable number of comp days and unpaid days off in addition to his paid time off. He just needs to work time off around various work deadlines. He's planning to switch to official part-time pretty soon.

[@josephjuno9555]

I am 62; 1 retired in July🎉 took 6 months off snd then went back Part-Time at some pay that I left at in Jan. I plan to work all this year and then decide to do after that?

[@Fioneers]

Congrats! Thats very exciting! Out of curiosity, Is the Part time work similar to the work you did before retirement, or different?

[@josephjuno9555]

I chose to go back to the exact job I had left. It was basically a sebaticle? I retired, begsn my Pension - it had been frozen so wud not grow. We agreed before I left I wud come back in Jan. I loke the Hospital job and the people but Pension allows me to work Part-time so I don't work as many nights. And sm not tired all the time

[@Fioneers]

Such a difference! So great

[@kinnofthewest988]

But statistics show that odds are that we do live until old age, how impractical!! 😂

[@Fioneers]

You’re right that we are living longer. What part do you find impractical? Spending down a % of your portfolio before traditional retirement? On the other hand, averages don’t matter as much if you don’t meet or exceed the average. I can’t imagine working my entire life to die before I retire.

[@Sew_Retired]

❤🎉❤🎉

[@ZZ-ou7gp]

If semi retirement looks like you then forget it. I don't want to end up croaking and choking. Your advice is sanctioned by the ones that everyone kept as slaves. You go girl ...like literally please just go

[@Fioneers]

Thanks for the comment. Semi retirement won’t be for everyone. I’m not sure I understand your point about my advice. Care to elaborate?

[@bethfromva6375]

Thank you for this video! Gave me much validation for the changes I recently made. Was so burnt out in the healthcare arena… Lowered my monthly expenses with a move and just generally lowering budget categories that allowed me to work just two days a week. Working those two days a week, I realized I still hated my job😂 I was able to find a part-time job in a lovely gift store that, combined with very small withdrawals from my savings, provided the income I need and I am so much happier! Thank you!

[@Fioneers]

Amazing! 🤩 we are huge advocates of experimenting, and it sounds like you’ve learned so much about what you enjoy doing for work. Enjoy semi retirement 😀

[@JohnBowl14690]

Beth - I have been semi-retired for about the last 3.5 years and I believe ALL people should first do semi-retirement for the first 2-4 years. I wasn't ready to retire 3 years ago, but now it makes perfect sense for me to fully retire, which will happen within the next 12 months. Will I work again? Maybe, but not likely. I took me a while to get to this point of getting sick of my job...which I basically just reduced my hours from full time to part time. I realize if I quit, I will never get the pay I am getting now, but who cares? I want to do something else. Never again will I do this. It's an easy job, but I am just tired of seeing the same faces and doing the same thing. Easy, but I just can't stand it any longer.

[@yagisencho]

First I'd heard of 'coast FI', but that's basically the concept I was describing to a financial advisor earlier this year. I ended up not going with his services, partly because he wasn't supportive of the concept (likely because his company wouldn't benefit).

[@Fioneers]

Coast FI is a newer concept so it doesn’t surprise me that he wasn’t supportive of the concept. I remember when we first heard of this concept, and how liberating it was. Let us know if you have any questions as you look into this further.

[@alphaomega1351]

No thank you! I'm off the corporate hamster 🐹 wheel as soon as I qualify. What people need to focus on is ownership of a piece of real estate since shelter will be the biggest expense. Just stay away from anything attached to HOA. 😳

[@Fioneers]

You’re welcome! Great advice to lower expenses and gain more freedom.

[@nateCA]

Great video! I'm 50 years old and have had a successful business for 15 years. I enjoy it, but have been very burned out the last few years. I am trying to figure out when/how quickly I want to retire. your video helped me contemplate other options. I will be checking out more of your lifestyle videos, etc. It sounds appealing to keep what i'm doing, but adjust my lifestyle/calendar to recover from burnout! new subscriber 😀

[@Fioneers]

Thanks so much! I’m glad to hear it was helpful. Let us know if you have any questions as you dive into other videos.

[@jmb-cm7mr]

My husband and i retired 6 months before turning 62 and we have no regrets. We have enough money we do not need to work at all, nor do we have a desire to. We are involved in our Church and go camping in the summer and are planning on trips out West next year.

[@Fioneers]

Thanks for sharing your experience and congrats on having no regrets. I’m glad to hear you have a community that you’re involved in and are making great memories.

[@5canwalk]

Your video was pushed to me as I embark on my semi-retirement in 1.5 weeks' time. Very sensible and practical insights! Thank you!

[@Fioneers]

Thank you! And congratulations on the upcoming change. What do you plan to do with your time?

[@2012srp]

This is fine for people who want to work part time until they die. That's not what everyone wants, and for those of us who don't want to do that, that's why we have invested a lot for a long time so that we can retire fully at some point.

[@Fioneers]

Yup, this path won’t be for everyone. I’m glad you’ll be able to fully retire. How do you plan to spend your time in retirement?

[@JustChill76]

Nice and slow explanation. Awesome. New subscriber ❤❤

[@Fioneers]

Thanks for subscribing 🎉

[@rjsimpkins2911]

I went p/t self employed in 1999. 08 recession on top of regulatory issues forced me back into corporate for almost 4 years, including a 900 hours of mandatory overtime year. I would rather be dead than have another job. I have 2 p/t micro bizs now, so that BS won't happen again.

[@Fioneers]

That makes sense. Nice to know that the worst case for you was everyone’s normal lives. Good for you for making your way back to freedom on your own schedule. How much time do you work each week with the two bizs?

[@rjsimpkins2911]

@@Fioneers Fluctuates. 1st 10-15 mostly Saturday, with some distributed between Friday or occasional other day. 2nd is between 0 & whatever mostly flexible and at my pace

[@Fioneers]

I love that! Too often businesses focus on growth instead of creating a lifestyle business.

[@dagreatstoney.5869]

Worked shifts all my 30 year's of working life so far , sadly you come to believe the way you feel is normal, this half alive state of being. If you can only work days, if you can get out

[@wildfoodietours]

Semi retirement sounds enticing and a much more reachable goal than regular FIRE. Thanks for the boosted motivation.

[@Fioneers]

You’re welcome! Good luck working towards your new goal.

[@daydreamer4902]

This was a very clear explanation. Thank you. Is your description of Semi-retirement essentially a combination of Coast FIRE + Barista FIRE?

[@Fioneers]

Thank you! Kind of. We see barista fire as one form of semi retirement, but is typically working a part time, low stress job. Semi retirement is more general with where/how you are earning active income. And semi retirement is one stage closer to FI than coast Fi.

[@mitchthornton1820]

Seems like coast retirement is for people who don’t have a family , the dollars it takes to get to where you no longer have to save for retirement doesn’t normally come early or with a family .

[@Fioneers]

I’ll be the first to admit that it’s much easier to do it without a family, but doesn’t mean it’s not possible. We actually have an interview with Anders on this channel who has a family and switched to coast to FI so he can maximize his time with his family. We’re happy to share more examples of families if that would be helpful

[@tompietz1608]

We're at Coast FI now. In 2 years our last two children will have college paid for in part by us. My wife has summers off and I take off 7-8 weeks during the summer. It feels like we are semi retired.

[@Fioneers]

That’s amazing! What do you and your wife do for work? Sometimes there’s not really a distinction between a coast fi lifestyle and semi retirement.

[@tompietz1608]

@@Fioneers I'm a pastor and my wife homeschooled our children for 20 years and is now teaching at a local school

[@tonywright8342]

Oh I so agree with what you say. I retired just over a year ago. It is not what you think it will be like. Follow the advice given here.

[@Fioneers]

Thanks for sharing your perspective! So important for others to hear from others who have retired and are saying, “don’t so it like i did.” What would you change if you were doing it over again? Go part time earlier?

[@tonywright8342]

Yes if I could go back I would have gone part time for sure. I made the decision to retire way too quick. I didn't really think it through. If you had of asked me then how I would go with retirement I would have said I will be just fine, I will find lots to do. That hasn't been my experience. Like you my advice is to go part time and take it from there.@@Fioneers

[@allisonmeyer4521]

Been semi-retired for 3 years now with 3 kids 5 and under. It's fantastic to slow down and enjoy the family time!

[@Fioneers]

Amazing! How much extra time do you have now compared to before you semi-retired?

[@allisonmeyer4521]

@@Fioneers it's varied, but currently 20 hours per week less time on paid work.

[@saksitb3491]

great idea

[@Fioneers]

I’m glad you like idea of semi retirement!