Although it may sound futuristic, flexible retirement is not a novel idea. Retirement is eagerly anticipated by many as it offers a chance to unwind and relish the perks of retirement, such as pursuing hobbies or spending quality time with family. Traditionally, reaching retirement age implied ceasing work, accessing our pension savings, and utilizing them at our discretion. However, flexible retirement has the potential to alter this conventional notion.
What is flexible retirement?
Flexible retirement allows individuals to experience certain retirement benefits while still remaining employed. For some, the typical retirement age can seem distant, and as we age, the weariness accumulated from years of labor can impact us. The impact of aging varies from person to person, with some becoming less active while others continue to feel fit enough to continue working.
It is important to take into consideration the practical aspects of flexible retirement before considering the idea of retiring in a more relaxed manner. The option of reducing working hours and utilizing pension benefits is increasingly attractive for individuals who are 55 years old or older.
The act of an employee using their retirement benefits while still working is referred to as “flexible retirement.” This can occur when there is an agreement between the employer and the employee. Flexible retirement can be beneficial for managing an older workforce or preserving valuable skills.
Advantages of flexible retirement
Flexible retirement has both advantages and disadvantages, and it is not surprising considering that retirement is a crucial stage in our lives. The process of preparing for our initial pension can be complex, thus requiring caution in handling our retirement savings. Now, let’s explore the potential benefits of flexi retirement.
Continue working as you want
Having flexibility in retirement means that you can have a more relaxed lifestyle while still maintaining your routine and relationships from your career. It is important to sometimes slow down and have control over the pace of your life. Working full-time for many years can be tiring and make us rethink our lifestyle. However, some people do not want to fully retire; they prefer to work fewer hours or days in order to regain focus. With flexible retirement, you can do just that by accessing a portion of your pension savings while still continuing to work alongside your colleagues.
Keep earning income with reduced working hours
Earning money with reduced working hours is a convenient choice for individuals who wish to step back from the front line. However, transitioning to this lifestyle involves a specific process that necessitates careful consideration and evaluation of certain steps.
It is important to exercise caution when considering flexible retirement, as any mistakes could carry significant consequences. Since you will be working fewer hours or days, the income shortfall can be compensated for by utilizing funds from your pension pot. We highly recommend seeking guidance on flexible retirement options from a qualified adviser with expertise in financial matters.
Disadvantages of flexible retirement
Before making any decisions, you need to be cautious and evaluate every option based on strict criteria as your pension fund serves as a safeguard for your future. Now, let’s explore some drawbacks of flexible retirement.
Full retirement age might not be just around the corner
If you work less, your wages and contributions will decrease. If you decide to reduce your hours at your normal retirement age, or even earlier, you may face the possibility of having to work for a longer period or receiving a modest pension.
Not able to retire due to lack of funds
Flexible retirement may not be suitable for everyone due to factors such as inflation causing wages to stay low and pension savings to be lower than expected. Consequently, certain individuals may not have the ability to avail themselves of the option of flexible retirement. It may be beneficial to thoroughly analyze your income sources and savings to determine if you can consider flexible retirement without endangering your previous efforts.
Our Recommendations
Catering bartender or server
If you have attended a banquet or reception, you may have noticed individuals dressed in standard white shirts and black bow ties, working at portable bars or serving food. This type of job offers a flexible part-time schedule, particularly suitable for individuals who are not fatigued from a regular 9-to-5 job and are available during evenings or weekends.
Tour guide
There are various forms of being a tour guide, and the demand for it changes based on the location and season. It can entail either being a narrator on a tour bus or a guide who leads walking tours at historical sites or museums.
Seasonal park worker
If you reside close to local, state, or national parks, ski resorts, golf courses, or amusement parks, it is likely that these establishments have a short period of peak activity. Both the parks and the companies managing food and lodging services require seasonal employees. Retirees who travel in RVs have the advantage of being able to bring their vehicles to the locations with available employment opportunities and potentially park their RVs on site.
Seasonal mail order employment
During peak season, which is typically the weeks leading up to Christmas, numerous mail order companies opt to employ extra staff at their fulfillment centers. For individuals who own RVs and are comfortable with prolonged stays in them, this serves as an alternative opportunity.
Seasonal retail employment
During the holiday season, many local retailers recruit temporary workers to supplement their existing staff. When I was in college, I spent several weeks working at a Hickory Farms store in the local mall during my winter break. The period between Thanksgiving and New Year accounted for the majority (90%) of their annual transactions. The majority of their seasonal workforce comprised college students or retirees.
Pet sitting or dog walking
Instead of boarding their pets at a kennel, numerous pet owners choose to leave their pets in the care of a trusted individual at home while they travel. In the case of certain types of pets such as birds, fish, hamsters, and turtles, boarding them at a kennel is not possible, leaving them with no other choice but to have someone visit their home to feed them. Additionally, there may be individuals who require assistance with tasks like watering plants or managing pool chemicals while they are away.
Repair service
If you have an affinity for repairing things, you have the opportunity to establish a small repair business in your garage. This business would involve fixing bicycles, lawn mowers, small appliances, or musical instruments, utilizing the expertise you possess. Alternatively, you could consider offering a home handyman service, allowing you to choose whether or not to take on jobs based on your desired workload and travel arrangements.
Holiday decorating or gift buying
There are individuals who are willing to pay for assistance in decorating their homes or handling their gift purchases during the holiday season. Someone I know regularly goes to Dallas during mid-November and spends six weeks decorating the homes (both interiors and exteriors) of wealthy individuals.
Specialty cake or cookie baker
If you have a passion for baking and possess excellent decorating skills, you have the ability to make delightful treats for various occasions like parties, special events, or upcoming holidays. Someone I know engages in this practice and advertises her delicacies through local connections and posts on Facebook. Additionally, you can explore the possibility of selling your baked goods at upcoming festivals, events, farmer’s markets, and similar venues by making inquiries.
