Semiretirement Can Help Bridge the Gap Between Full-Time Work and Complete Retirement 

Semiretirement is a transitional phase between full-time work and complete retirement, allowing individuals to reduce their work hours or shift to less demanding roles while still earning an income. It’s an increasingly popular option for those who aren’t quite ready (or financially able) to stop working entirely but want more flexibility and time for personal pursuits. 

Semiretirement can take various forms, depending on an individual’s goals and financial needs. Some people scale back hours at their current job while others transition to part-time roles, freelance work, consulting or even starting a small business. Key advantages of semiretirement include: 

• Financial security. Provides a continued income , which helps preserve savings and delay drawing down retirement accounts. 

• Mental and physical well-being. Promotes well-being by maintaining a routine and sense of purpose through part-time work. 

• Flexibility. Allows for more personal time without fully giving up the benefits of working. 

• Gradual transition. Eases the psychological shift from a career-focused life to full retirement. 

A Six-Step Plan for Achieving Semiretirement

Successful semiretirement requires careful financial and lifestyle planning, including: 

1. Financial assessment. Evaluate your current savings, retirement accounts and income needs. Calculate how much you need to supplement your retirement savings with part-time work.
2. Flexible income streams: Identify potential income sources, such as consulting, part-time employment or nonretirement investment accounts, to ensure you’re financially secure.
3. Healthcare coverage. Consider how you’ll maintain health insurance, especially if leaving a full-time job with benefits. Options might include Continuation of Health Coverage (COBRA), spousal coverage or private insurance.
4. Social Security strategy. Delaying Social Security benefits can increase your monthly amount later. Decide whether to claim early or wait.
5. Skill assessment and career pivot. If you’re planning to shift industries or take on freelance work, upskill or retrain as needed before scaling back.
6. Lifestyle adjustments. Practice living on a semiretirement budget to see if it’s sustainable. 

By planning ahead, you can create a flexible, fulfilling lifestyle that bridges the gap between full-time work and complete retirement. 

Informational Sources: Fidelity: “Guide to Working Less and Living More” (November 18, 2024); Smart Asset: “What Is Semi-Retirement and How Do You Do It?” (May 29, 2024). 

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material. 

HUB Retirement and Private Wealth employees are affiliated with and offer Securities and Advisory services through various Broker Dealers and Registered Investment Advisers, some of whom may or may not be affiliated with HUB International.  HUB International owns the following Registered Investment Advisers:  HUB Investment Partners; HUB Investment Advisors; Global Retirement Partners, LLC; RPA Financial; and Taylor Advisors. Additional information for each individual HUB International Registered Investment Advisor may be found in the respective Form ADV available on the SEC’s IAPD website at https://adviserinfo.sec.gov. Insurance services are offered through HUB International.
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