Retiring In Stages

Retiring at 65 has been a common aspect of the American lifestyle for generations, but full retirement at that age may not be in the cards for everyone. With costs of living consistently on the rise, a pension may not be a sustainable enough income for many elderly individuals. Unfortunately, many retired individuals end up having to return to the workplace after retirement. This article will discuss how to plan for your retirement in stages so that you can keep a sustainable livelihood while reducing your workload over time. 

Why Retirement Doesn’t Always Work

As you age, it is likely that your medical costs rise. And while downsizing your home, or moving to a less-expensive state may help, your cost of living will likely rise the older you get. For many people, transitioning from full-time work to none at all can leave them feeling unfulfilled or bored. By retiring in stages, you can ease yourself into having more time for yourself. Additionally, having further income growth can allow you to prepare your loved ones for a more financially stable future. 

Transitioning To Partial Retirement

Your job may have the ability to allow you to transition to a part-time position as you retire. Some companies may not provide part-time positions in this way, so you may want to look elsewhere. This can be a good way to stay within your field while transitioning to fewer hours. 

Growing Your Investments Further

It is common for individuals to grow their savings through investments throughout their life. However, when you transition to part-time work while receiving your pension, you can put some or all of your part-time income into growing your investments further. 

Savings Growth

When you transfer to a part-time position, you could be able to delay digging into your retirement accounts. By allowing your 401(k) or IRA to keep growing, you can continue expanding your savings until you are ready for full retirement. 

Additional Funding for the Future

In addition to growing your savings, additional income can be important for preparing for what the future holds. In-home care, nursing homes, new grandchildren, and even your final burial wishes can all be important factors in your future finances. Continuing to collect income during your partial retirement means that you can better plan for your future.

More Time & Funds For Hobbies

Most hobbies require money to fund them. And while many people pick up hobbies in their retirement, such as golf or knitting, you may not want to dig into your savings to fuel your hobby. By retiring in stages, you can have additional income that can go to your hobbies, vacations, and other exciting things you’d like to experience, without digging too deep into your retirement funds. 

Potential Options for Part-Time Work

There are a lot of opportunities for part-time employment during your retirement age. Some of these options include:

• Consulting in your industry
• Non-profit organizations
• Teaching
• Food Delivery and Rideshare Apps
• Landlording or Air b&b
• Retail work

Why Retiring In Stages Can Be Important

While costs of living rise and people are living longer, it can be important to plan ahead for the future. It can be important to continue collecting income as you transition into retirement age. You can help ensure that you can live out the rest of your life comfortably while leaving a more financially stable future for your loved ones.

The author of this post is not a financial advisor. This article is meant for informational purposes only and is not intended as financial advice. Speak with your financial advisor before making any important financial decisions regarding your future. 
For over 50 years, Matthew Funeral Home has been serving the Staten Island community. We can help with almost every aspect of your loved one’s memorial service. Our family is here to serve yours, every step of the way.