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5 Important Signs You Should Consider Semi-Retirement

July 14, 2025

4 min Read

Written by Peter Burns

Edited by Molly Sullivan

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Traditionally, the idea of retirement meant that when you turn 65, you would retire from work and live off your savings and investments. However, today, fewer people want a comfortable ending to their employment completely. Some reports have found that 44% of individuals between the ages of 55 and 64 plan to continue working to some extent past retirement age.

Semi-retirement is the growing trend of continuing to work part time past the age of retirement. Here are five reasons you might want to consider it.

You’re Not Ready Financially

Retiring isn’t a fundamental right. It takes a long time to build up the savings and investments it takes to live out your old age comfortably. In fact, only 42% of Americans feel confident that they’ll have enough to retire comfortably. For those between 55 and 64, the average 401(k) balance is $196,000, and 15% of those older than 55 don’t have any savings at all.

Even if you have saved diligently over the years, it may not be enough to live out the retirement you want. Semi-retirement is an option that allows your investments to continue compounding for a few more years while providing an income.

If you’re able to work a high-paying job, like a real estate agent, you can begin cutting down the number of clients or hours you take on and continue to contribute money to your retirement accounts. For example, with a Roth IRA, individuals under 50 are able to contribute $7,000 a year that they can grow tax-free until they withdraw it after the age 59 ½. However, after turning 50, you can contribute up to $8,000 annually. By deciding to semi-retire, you can continue to contribute more money that will grow in your account tax-free.

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You’re Burnt Out

On the opposite side of the spectrum, you might have held a high-stakes role full of stress for years and feel:

Fatigued
Detached
Declining job performance
Easily irritated
Headaches
Tense muscles

All of these are symptoms of employee burnout, and it can vary depending on the individual. Unfortunately, the longer you ignore employee burnout, the worse it gets, and it isn’t just limited to the office. Burnout can lead to dramatic shifts in your personal relationships, where you may have a short fuse, become apathetic, fail to communicate effectively and show less interest in intimacy with your partner.

Semi-retirement can offer you a lifeline. By limiting your role and duties, you can set clear boundaries to separate your work and personal life. Reduced work and responsibilities will allow you to have more time for sleep and exercise throughout the week, leading to a better lifestyle without completely leaving your role.

You Enjoy Working

To some, the thought of retiring may be depressing on its own. If you were lucky enough to go into a field you enjoyed and find a job that you loved doing, saying goodbye to your work would be difficult. Semi-retirement offers an opportunity to stay on board in a reduced role and continue doing what you love, while giving the younger generation a chance to develop.

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You Want a Gradual Transition

Going from a routine work schedule to having more free time than you know what to do with is a major life change that can be difficult. Retirement syndrome is the onset of feelings of loneliness, emptiness and uselessness after someone retires. This often stems from an unclear understanding of one’s purpose now that they’re no longer working.

Semi-retirement can help you slowly adjust to these changes. You’ll have more free time to pursue hobbies and determine how you’ll spend your retirement, but you’ll also have some work to fill your days with meaning.

You’re Still in Demand

Even if you’re past retirement age, you might still have the skills and experience that a lot of companies are willing to pay the big bucks for. Being in demand can allow you to choose your own hours and earn a decent income at the same time. Some of these roles include: