February 8, 2023
Those in the workforce look forward to their retirement years with much anticipation. However, as the time comes, many find out that they may not have enough savings built up or they miss their career! Phased retirement or part-time retirement has become a popular option for many people. Read on to learn more about part-time retirement and how you can do it too!
Part-time retirement allows employees to “retire” from some responsibilities their jobs require, while continuing to complete other job functions. Those in part-time retirement positions oftentimes help train in employees transitioning into higher authority positions, transferring knowledge acquired from their own careers. Other times, workers leave their higher demanding jobs and careers for a less stressful job. According to the Bureau of Labor Statistics, there will be 13 million Americans aged 65+ in the workforce by 2024.
It may seem obvious, but working less means you should give your monthly spending a closer look. If a part-time income will not support your current expenses, consider cutting some of your discretionary spending, or placing a higher priority on value as you shop. Try to avoid tapping into your retirement savings too soon to supplement your decreased income.
As stated above, some part-time retirees stay at their current workplace, and have less responsibilities or a less demanding title. Others take this time as an opportunity to try something new. Is there another industry or non-profit charity you are passionate about? A part- time job may be the perfect time to expand your area of expertise!
If at all possible, continue contributing to your retirement fund during this time. There is no age limit on traditional or Roth IRA contributions. You can also take advantage of contributing to a 401(k), as you are still working for an employer. While working part-time may delay your ability to claim your Social Security benefits, this will benefit you in later years as you will have more funds available when you need them.
Our experienced financial team will help you plan accordingly for retirement. Ask your local Citizens First Bank for investing advice or any questions you may have. Feel free to stop in, give us a call or visit our website today.