Do you wish you could have more freedom at work yet still earn a paycheck? Remote work and flexible scheduling may help you ease into retirement rather than plunging in all at once.
In our retirement headline segment today, we’ll explore an article from the Wall Street Journal that discusses a new phenomenon that is a direct result of the Covid-19 pandemic. Additionally, I’ll answer Frank’s question about using the bucket time segmentation strategy in retirement. Listen in to hear details about what those buckets might look like and how to time withdrawals from each bucket.Remote work and flexible scheduling may help you ease into retirement rather than plunging in all at once. Click To Tweet
Outline of This Episode
- [1:32] How should the increase in mortgage interest rates change your retirement plans?
- [3:21] Part-time retirement programs are on the rise
- [7:40] Obstacles to phased retirements
- [8:25] My thoughts on phased retirement
- [9:54] How to determine when your long-term retirement savings bucket is up or down
The pandemic changed the way we work
Although the Covid-19 pandemic has devastated the world in many ways, it has also changed how many people work forever. Companies and workers were forcibly introduced to remote working possibilities and flexible schedules. These changes in the workplace have allowed older employees to phase into their retirement rather than switching from work to retirement the way one flips off a light switch.The number of employers who offer phased retirements has doubled since before the pandemic. Click To Tweet
Phased retirements may help retain workers
Since the pandemic also created a brain drain leading to a fierce hiring market and record rates of retirement, managers are now using semi-retirements as a way to lessen the brain drain by retaining more older workers. The number of employers who offer phased retirements has doubled since before the pandemic.
By easing into retirement, people enjoy more psychological benefits than when they make a sudden switch from working to retirement.
Another benefit of phased retirement is that more experienced workers are often helping to train the new workers that are hired to take their place.
Easing into retirement offers the best of both worlds
For many people, working part-time before fully retiring offers them the best of both worlds. Semi-retirement offers more time freedom and flexibility with the added benefit of a weekly paycheck. This means that retirees don’t have to dip into their retirement savings so soon and can draw out their retirement.
There are some issues that arise with these types of situations, but the benefits are myriad. The opportunity to craft a lifestyle that consists of 50% enjoyable work and 50% retirement may encourage people to explore retiring earlier. Others may not have to worry about saving so much or they will be able to stretch their retirement savings further with their part-time income.Semi-retirement offers more time freedom and flexibility with the added benefit of a weekly paycheck. Click To Tweet
Working from home means that you can work from anywhere
Working from home means that you can work from anywhere. So you could grab your laptop and hop on a plane to Paris and enjoy the freedom that retirement brings while still earning enough to pay for the trip. Your retirement plans are only limited by your imagination, so I hope that you are ready to embrace the best life that you can imagine.
Are you ready to explore more ways that you can learn about retirement planning? Make sure that you are signed up for the Everyday Is Saturday newsletter which arrives in your inbox each Thursday morning to remind you that in retirement every day is Saturday!
Resources & People Mentioned
- WSJ article – Part-Time Retirement Programs Are on the Rise
- Episode 238 – I’m Retiring in 3 Weeks! Here’s What to Do…
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