Could You Benefit From Semi-Retirement?

In recent years, the idea of “semi-retirement” has been added to the classic notion of “retirement” as the point at which people quit working altogether. People typically work fewer hours during this transition phase to full retirement, either at their previous jobs or in a new part-time position.

The benefits of semi-retirement include increased income, engagement, satisfaction, and even greater physical and mental health. This article examines everything you should know about semi-retirement.

Semi-Retirement Foundations and History

A person enters semi-retirement when they quit working full-time in their prior career and start working fewer hours or, possibly, putting regular workweeks at another money-earning endeavor they find more fulfilling and delightful.

Deciding to semi-retire is different from maintaining a regular work schedule as long as possible, even after retirement age.

The federal policy that reduced Social Security benefits when recipients made money from working discouraged semi-retirement for a long time. But thanks to revisions to the earnings limit regulation, social security recipients can earn any amount of money from working after reaching full retirement age without reducing their benefits. This has made semi-retirement more appealing.

According to the 2022 Transamerica Retirement Survey, over six in ten (58%) workers now intend to continue working at least part-time in retirement.

Forms of Semi-Retirement

Working fewer hours for your current employer, taking on new part-time employment, or launching a business are all semi-retirement options. According to an Express Employment Professionals survey, 79% of respondents chose semi-retirement to convert to a flexible work schedule. In comparison, 59% want to work fewer hours for the same employer or become consultants.

Each of these choices has its advantages and disadvantages. For example, a person is likely to make more money per hour working for the same employer while working fewer hours remotely or on a flexible schedule. But only 21% of businesses, as per the Express Employment survey, provide semi-retirement employment opportunities.

Similarly, part-time or seasonal employment might provide freedom and the chance to pursue a personal passion or learn a new skill. However, part-time employment may not offer any benefits at all and is likely to pay less.

Also, starting a business can be rewarding, but the hours may be challenging, and getting a new firm off the ground may be challenging without incurring debt. Another option is consulting, which offers the chance to make more money per hour without needing to invest in a firm.

Pros of Semi-Retirement

One of the biggest advantages of semi-retirement is the ability to earn more money. Without a pension or significant personal assets, retirees may be concerned that their Social Security income won’t be enough to support a comfortable standard of living.

Semi-retirement is a valuable source of supplementary income to aid with living expenses. Retirees with some personal assets and a pension might postpone claiming Social Security payments while in semi-retirement, increasing their monthly benefit.

Social Security is still the most significant retirement benefit for most Americans. If you wait until you are 70 years old to start receiving Social Security benefits in 2022, the maximum payout is $4,194 per month or $50,328 per year. You can enhance your maximum benefit by working more and earning more money.

People who continue to work after retirement would also benefit from social interaction that might otherwise be absent if they stopped working altogether. This kind of activity can benefit physical and mental health more than total leisure.

Cons of Semi-Retirement

Choosing semi-retirement can result in having a much lower income for those who retire before being eligible for Social Security or pensions. This represents the biggest barrier to semi-retirement for many workers.

Another potential difficulty in semi-retirement is health insurance. Moving to part-time employment, whether at the same firm or a different one, a person who previously had health insurance via their employer risks losing that benefit.

Suppose the individual isn’t old enough to be eligible for Medicare at age 65. In that case, they will probably have to pay for COBRA benefits or insurance they acquire through the Health Insurance Marketplace established by the Affordable Care Act or on the open market.


Semi-retirement entails working fewer hours remotely or with a more flexible schedule during the transition to full retirement. Semi-retirement can give you more leisure time than you had during most of your working years while still bringing value-added income, satisfaction, and involvement. However, finding health insurance and an employer supporting semi-retirement can be challenging.

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For over 20 years, Jeff Boettcher has helped his clients grow and protect their retirement savings. “each time I work with my clients, I’m building their future, and there are few things that are more important to a family than a stable financial foundation.”

Jeff is known for his ability to make the complex simple while helping navigate his clients through the challenges of making the right investment decisions. When asked what he is most passionate about professionally, his answer was true to character, “Helping my clients – I love being able to solve their problems. People are rightfully concerned about their retirement income, when they can retire, how to maximize their financial safety and future income.” Jeff started Bedrock Investment Advisors for clients who value a close working relationship with their advisors.

A Michigan native, Jeff grew up playing sports throughout high school and into college. While Jeff is still an ‘aging’ athlete, Jeff will take more swings on the golf course than miles running these days. He creates family time, often with weekly excursions to play golf, a hobby he shares with his three young children.

Investment Advisory Services are offered through BWM Advisory, LLC (BWM). BWM is registered as an investment advisor and only conducts business in states where it is properly registered or is excluded from registration requirements. We are currently either state or SEC-registered in the following states: Arizona, Florida, Illinois, Kansas, Louisiana, Michigan, New York, Oregon, Texas, and Washington. Registration is not an endorsement of the firm by securities regulators and does not mean the advisor has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting. Always consult an attorney or tax professional regarding your specific legal or tax situation.
Although we make great efforts to ensure the accuracy of the information contained herein, we cannot guarantee all information is correct. Different types of investments involve higher and lower levels of risk. There is no guarantee that a specific investment or strategy will be suitable or profitable for an investor’s portfolio. There are no assurances that a portfolio will match or exceed any particular benchmark. Any comments regarding guarantees, safe and secure investments, guaranteed income streams, or similar refer only to fixed insurance and annuity products. They do not refer, in any way, to securities or investment advisory products. Fixed insurance and annuity product guarantees are subject to the claims‐paying ability of the issuing company and are not offered by BWM Advisory, LLC. Guaranteed lifetime income is available through annuitization or the purchase of an optional lifetime income rider, a benefit for which an annual premium is charged. Annuities are long-term products of the insurance industry designed for retirement income. They contain some limitations, including possible withdrawal charges and a market value adjustment that could affect contract values. Annuities are not FDIC-insured. Not affiliated with the U.S. Federal Government or any government Agency.

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