Want To Retire Early? 4 Ways To Achieve Semi-Retirement Instead

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Early retirement is a dream come true for most Americans. But many people cannot afford to — or aren't sure they want to — just stop working before ordinary retirement age. If you're in this difficult position, it doesn't need to be an either/or situation. You may be able to turn your early retirement dreams into semi-retirement realities. Here are four strategies that you might use.

1. Drop to Part-Time

Young, healthy retirees often struggle with the desire and ability to continue doing productive work even though they want more freedom. Could you find a compromise by dropping down to part-time work instead of a 40-, 50-, or 60-hour week? Part-time work is often available right where you currently work through wage-based positions, consulting work, or jobs in a different area of the company. 

2. Build Passive Income

Passive, or semi-passive, income streams provide a compromise between working full time and retiring completely. If you invest in a rental home, for example, you earn a mostly passive income in the form of rental payments each month. In return, you handle the administrative work, tenant communications, and maintenance of the unit. Even though some work is still required, passive income gives you more free time. 

3. Start a New Venture

If you just need to cover your current expenses in order to retire from your regular gig, consider the value of launching or building an entrepreneurial venture. Many early retirees can do freelance work using the skills they developed in their careers. But this might also be a great time to turn your woodworking passion into a one-person business or monetize a blog about your early retirement journey. 

4. Retire from the Stress

Many people who dream of leaving their job actually dream of leaving the things they dislike about it. If you work in a high-stress environment, a tough corporate world, or an industry you don't value, stopping work may not be the only solution. In this case, switching from a difficult work situation to a more relaxed situation — although often with fewer hours or lower pay — may feel just as refreshing as retirement. 

Where to Start

No matter which of these paths to semi-retirement may work for you, the best place to begin is to consult with a qualified retirement financial planner. They will work with you to identify your semi-retirement and full retirement goals, available resources, and the best way to marry these. Call today to make an appointment with a retirement advisor

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16 December 2021

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