A One-Page Wealth-Building Plan for Semiretirement
Key considerations for planning a period of part-time work before full retirement.
Retirement is not always an abrupt process where employment ends on a certain date. Many people opt for a period of semiretirement instead. The amount and type of employment varies, as does the age at which a person or couple enters a period of part-time employment before retirement.
Regardless of when semiretirement begins and what it looks like, having a plan for preserving and growing wealth during this time can help ensure it progresses smoothly and successfully from a financial standpoint. However, there are unique situations and challenges that must be considered.
In this article, I present a one-page PRISM Wealth-Building Plan designed to help a 58-year-old couple, Jack and Janice, transition from full-time employment into semiretirement at age 60 and maintain this lifestyle for several years before fully retiring (Figure 1). I include suggestions for those who wish to enter semiretirement at an earlier age or wish to continue working past age 70 at fewer than 40 hours per week.