Many seniors who are close to retirement age often ask that very same question. It's a good one, too, since many potential retirees are in the dark about many facets of their upcoming retirement. So, for starters, just in case you didn't already know this, the three types of retirement are:
- Temporary Retirement
- Traditional Retirement
Table of Contents
- Temporary Retirement
- Traditional Retirement
- Final Words About Choosing the Best Retirement Type for You
So, let's get started by exploring the particulars of semi-retirement. First of all, what is it exactly? Simply put, you could go into semi-retirement once you’ve reached a certain age, however, instead of not working at all anymore, you would be continuing to work part-time in some capacity.
Is it a Good Option?
This is also a form of retirement that’s an excellent way for you to start supplementing your retirement income while still staying active.
If you’re somebody who feels the need to keep moving around most days while also having a purpose in life and a role to play, semi-retirement could be a good option.
Semi-retirement can also give you the option to transition to traditional retirement when you feel like you’re financially, mentally, and physically prepared for it.
Relax & Enjoy
Like many retirees, you may worry about not being quite ready to completely cut the cord on their working lives as well as the interaction with peers that it can provide.
So, semi-retirement allows you to find some time for relaxing and enjoying your personal time but you’re still remaining semi-tethered to the world of work in some capacity. For you, it just might be the best of both worlds for now.
What Does it Mean For You?
It could mean anything from stepping down from whatever your previous role was at your job and simply becoming a consultant.
On the other hand, it could mean completely changing careers and doing something that might be more meaningful to you or even more fun. It just might not be what you’ve been doing for so many years.
Is An Encore Career Right For You?
It's no secret that people these days are living longer than ever thanks to healthier lifestyles and medical advancements. Moreover, as Baby Boomers enter their senior years, more job openings are available for them.
Taking advantage of this opportunity to begin an encore career could be a good idea if you've earned the right to retire but aren't quite ready to sit back and put your feet up yet.
Among the reasons you might still want to work are to combat boredom, earn extra income, and have some fun doing something new.
Do You Want to Make Good Use of Your Years of Experience?
You could take a break from what you've done for most of your career and do something completely different. In fact, recent studies have shown that nine million Boomers, ages 59 to 70, are already part of the encore career movement.
In many encore careers, you can change the world for the better or help others. In today's society, many seniors find fulfillment, stimulation, and new learning through careers such as teaching, social work, mentoring, and missionary work.
Despite the struggling economy and many people out of work, it is much easier than you may think to start your second career when you have a lifetime of experience to offer. So, make the most of your hard-earned expertise.
Many non-profit organizations would welcome your leadership skills if you were a manager or executive. An employment opportunity on a helpline might just be what you're looking for if you worked in customer service.
The benefits of temporary retirement combine those of traditional retirement and semi-retirement in many ways. This type of retirement involves working a career for a while, retiring from it, and returning to it later.
Do You Want to Try Changing Careers?
While it may seem unusual, it is not uncommon for people to approach retirement this way. Taking long breaks from work can be quite rewarding if you're able to afford it. And you can change careers or even just pick up where you left off during temporary retirement.
Can You Support Yourself During Temporary Retirement?
It does, however, require some fairly advanced financial planning to implement this particular retirement strategy.
People who are interested in temporary retirement need to be able to support themselves by saving smartly for retirement and building passive income streams, like renting out rental properties to tenants. However, the same is true for anyone interested in any type of retirement.
When most people hear the word “retirement”, they usually think of traditional retirement. And, the name pretty much sums it up. In short, you stop working permanently around 65 years of age.
What Does That Mean For You?
It means no part-time or full-time work anymore. It also means just all of that free time and you together at last. In a nutshell, traditional retirement means receiving monthly Social Security payments instead of earning a living from a job or career that you’ve worked at for so many years.
What Do You Want to Do For Fun?
As a retiree, you use your Social Security income and retirement savings to allow you to afford all the fun things you want to do now.
From fine dining to traveling, as well as getting to spoil your grandchildren with birthday presents and holiday parties, these are the things that make life worthwhile in retirement.
You could even take up a new hobby that has always interested you but you never had time for when you were working.
Final Words About Choosing the Best Retirement Type for You
Each of these three retirement types offers its own benefits and drawbacks. Traditional retirement, for example, gives you all the time and freedom to enjoy whatever you want. However, the quality of life that you may want can only be affordable with sufficient retirement income.
With semi-retirement, you can continue to work part-time to augment your retirement income, but you won't have nearly as much free time as you would with traditional retirement.
However, if you prefer to stay active and productive during retirement, semi-retirement is a good option.
On the other hand, temporary retirement could be the option that suits you the best. It can give you a break, and let you explore the benefits and drawbacks of permanent or traditional retirement while not being quite as big a step.
So, now that you know a little bit more about the three types of retirement, it'll be easier for you to decide which one is for you. And, most importantly, enjoy yourself because you've earned it!