Retirement can be a big change for a lot of people. And it’s not always a positive one.
It’s not uncommon to eagerly anticipate retirement, only to wind up bored and stressed about money once that milestone rolls around. That’s why a partial retirement could be a good bet. Here’s why I love the idea of easing into retirement rather than diving right in.
You can do your best to plan for retirement from a financial, logistical, and mental standpoint, only to encounter hiccups once your time in the labor force wraps up. Partial retirement gives you a chance to deal with certain issues along the way so you’re able to come up with a game plan before full-fledged retirement is upon you.
Does the 4% retirement rule still hold true? Here’s how to make it work for you
1. You can continue to earn money as you play around with a new budget and lifestyle
Being retired means having a lot more free time on your hands. That’s time you’ll need to fill, and it can cost money to do so. With a partial retirement, you don’t necessarily need to tap your 401(k) or IRA right away, because you’ll still be earning an income. At the same time, you’ll get a sense of whether your plans for staying busy are doable, given the retirement savings balance you have.
2. You can see what it’s like to have more downtime
Some people don’t do well with having free time on their hands. I happen to be one of them, so I like the idea of easing into a routine that’s less structured.
Now you may find that once you scale…