Consider Trying Semi-Retirement Or Voluntary Simplicity
The standard behavior for stepping out of the workforce usually involves quitting work fully at the ripe age of 75 or 80. While this has worked well for millions of people over the past few decades, many people in their 30s and 40s are looking for other options and getting creative. Waiting until your golden years to pursue time consuming hobbies or enjoying travel can really reduce your ability to meet your goals. Stiffening joints and age related health problems often take all of the enjoyment out of retiring late in life. If you have a healthy base of savings and can adapt to a flexible lifestyle, phased transition may be an option for you.
Follow Your Passions Early On With Mini-Retirements
One great option for spending more time following your passions is to rethink your entire plan for the future. Instead of waiting 50 years to spend 20 years or more relaxing in the afternoon sun, NPR offers an alternative that involves breaking up the time into smaller breaks scattered throughout your life (http://www.npr.org/2013/03/13/174198168/how-to-have-your-first-retirement-at-32). You can still set aside enough money to cover your expenses after age 80 and simply pursue numerous different careers in between your months of time off from work.
Get Flexible, Especially After Age 50
If you’re already in your 50s or 60s, consider retiring partially now to enjoy both meaningful work and more free time. Fox Business says that people who can handle flexible work will enjoy these type of semi-retirements the most (http://www.foxbusiness.com/personal-finance/2013/03/13/are-cut-out-for-semi-retirement/). You could open a small business providing services to local businesses, or take a job with a non-profit that can’t afford a full-time employee.
The small amount of income could cover most of your expenses and stretch whatever you have already saved for a future of relaxation.
Plan Your Transition Carefully
Workers who want to slowly ease into an early draw-back situation should start by setting a five-year goal. In five years, you could have enough saved to take a six month break and still have funds left over for the distant future. You can also get alternative employment lined up if you are ready for a slower, more relaxing lifestyle. Five years will give you time to learn new skills, adjust your habits for self-employment, or research a business opportunity, says Fox Business (http://www.foxbusiness.com/personal-finance/2013/03/13/are-cut-out-for-semi-retirement/).
Look For Investment Advisory Support
You should invest in professional advice before taking a leap into this kind of different plan. Talking with an investment advisor could help you find interesting and unexpected ways to finance your ability to step out of the workforce early. If you plan to continue saving while working a part-time job, consider a self-directed account to maximize your chances for a diversified income. Investing in real estate or precious metals could keep you covered for years to come without the need for a lot of extra work.
Don’t Rely On Social Security
If you’re using the idea of early plan to put off the need to save money, keep in mind that you won’t be able to rely on the idea of Social Security. You may not be able to receive the benefits you are expecting due to changes that could occur in 10 years or three decades from now. Find ways to keep money flowing into a IRA, even if you choose a new lifestyle that requires less career building and more down time. You don’t want to be caught unprepared for illness or forced convalescence towards the end of life.