Money
Work Matters
Is Part-time Retirement Right for You?
By James Lineweaver
When you were younger, your first job was probably part time. Those were the days, right?
You had few expenses and made enough money to do the things you wanted to do. You had lots of time for family, friends and hobbies. Many people want to go back to a similar work schedule, especially as they approach retirement age. Rather than working part time in retirement, we like to think of it as a part-time retirement.
Full Time Versus Part Time
There are many reasons to consider part-time retirement. First, people are living longer. According to the National Institute on Aging (a division of the U.S. National Institutes of Health), in 1950 the average man retiring at age 65 could expect to live another 13 years and a 65-year-old woman another 15 years. Today, men average an additional 17 years and women another 20 years beyond what we think of as typical retirement age.
Second, people want to have meaningful work. A 2013 Gallup poll found that 61 percent of employed Americans say they plan to work part time after they retire. And most of those people said they plan to do so because they want to — not because they need the money.
Finally, work can be good for your health. Many studies point to the benefits of a part-time retirement. A 2009 study in the Journal of Occupational Health Psychology found that those who worked in retirement were healthier than those who didn’t. Another study reported by the American Psychological Association in 2014 found that working in retirement can delay mental decline.
What Do You Want?
In our 24 years helping clients plan their ideal retirement, a common theme is that many struggle with retiring from something, rather than retiring to something. Many retire from decades of running their own business, from traveling the country and world as an executive, and from building a lifetime of knowledge that they can no longer use. We find that many of our clients are much happier in their retirement when they continue to use the knowledge and experience they spent a lifetime accumulating.
For some, that means still being involved in the business. Others may become consultants. Some may volunteer or serve on the board of a charity.
Whatever your ideal retirement is, start considering it now. Plan to have the retirement that you’ve imagined.
James S. Lineweaver is president, CEO and a financial consultant at Lineweaver Financial Group. He can be reached at 216-520-1711 or at lineweaver.net.
