Definition
A strategy for gradually reducing work hours as you approach full retirement, allowing a smoother transition while still earning income.
What to consider
- Take advantage of higher contribution limits if you’re self-employed.
- Keep an eye on annual limits as your income grows.
- Use it to reduce taxable income while saving for retirement.
Real world scenarios
- Diana transitions from full-time to part-time work, supplementing income with Social Security. This smoother shift keeps her engaged while enjoying more leisure.
- Ray adjusts his budget to match semi-retirement, scaling back monthly expenses and focusing on essential costs first.
- Working fewer hours, Natasha devotes extra energy to hobbies and volunteer activities, making the most of her semi-retired status.
Related terms
Related Playbooks
Get instant access to all our expert playbooks and 1-1 financial coaching when you join the Bolder Money community. Learn more here.
Investments & Retirement
Investment Strategy Guide
Investments & Retirement
The Ultimate Guide to Finding Lost Retirement Accounts: Recover Your Missing Money
Investments & Retirement
Retirement Planning Guide
