If you are contemplating early retirement from your employer as a means to becoming semi-retired, there are several factors to consider. The most important factor is you do not want it to become an obsession or become a negative factor in your retirement living.
You have several options for semi-retirement and they include:
- Being a substitute teacher for those with the right backgrounds
- Researching and writing the long awaited book
- Working a couple days a week for a local business
- Working part time in sales
The benefits for the semi-retired person that desires social interactions are both psychological and healthy.
Early Retirement and Social Security
If you are enjoying semi-retirement living and you are collecting Social Security. There are some tax considerations imposed by the Internal Revenue Service (IRS) you need to consider. If you:
- Retired at 62 years and 6 months, and started collecting Social Security, you are IRS income is limited to making $12,960 a year. If you exceed this amount, your social security is reduced $1 for every $2 over the limit.
- If you are in your retirement year and not past your Social Security retirement month , your IRS income limit is $34,440 a year. Again your social security will be reduced $1 for every $2 over the limit.
The best option is when you reach your full Social Security retirement year and month, because there is no IRS income limit.
Early Retirement Employment Options
Some companies will hire their retirees as independent contractors. The reason they do this to keep skilled workers in their labor force without the associated high labor costs.
However, most people who seek some sort of work as a semi-retired worker chose something completely outside their previous experiences. They do this for a change of pace from their life long occupation.
The people who decide to work as a semi-retired person have gained many life skills. This can lead to working sales in a book store for a while, then jumping to driving a tram at an amusement park, and the switching to something else for variety.
Semi-Retirement
Semi-retired employment is beneficial when there is no financial need connected to the employment. This allows you the freedom to fit the work into your life style, along with giving you opportunities to volunteer in organizations which are always in need of extra help. Semi-retirement living can be enjoyable and helps:
- Continue lifelong experiences
- Keeps your mind alert and your body fit
Mental and physical health is the keystone to a full life as you sit back on your lounge chair or porch swing and enjoy retirement living. Part-time working helps keep the mind sharp and the body healthier with activity, no matter how minor the work.