What is your retirement type?

There are as many retirement types as people. There is no one right answer or type of retirement that you must pursue. However, there are some types that are most common:

1. Traditional

2. Phased

3. Part-time

4. None

1. Traditional Retirement

In a traditional retirement, people work till their last working day of the job or business and then just go cold turkey after. You don’t show up for your job on your retirement day 1 and all the days after. This is a full gear shift on the work front, from 100 to 0.

2. Phased Retirement

When people start to retire in short modes of delay, we call it phased retirement. For example, you may choose to work for 3 days instead of 5 in a week for a few months, followed by 2 days a week and then alternate weeks for 2 days and finally on demand as and when your team might need you. This retirement is every effective way to full retirement and is also my referred mode of retirement if you have the flexibility to do so. Unfortunately, federal positions may not give this option to the employees but it is definitely an option when working in private sectors.

3. Part-time Retirement

When you choose to retire part time, it simply means that you will never retire but work in a selected capacity. Instead of putting in 40 hours/week you may start doing 20 hours/week or so. This is more for people who like to keep working and not consider the option of full retirement. Honestly, but this is the kind of retirement that I am a right candidate for. As of today, it feels like my brain will ooze out of my ears if I choose to retire. I wish I could retire 100% but I don’t think it would be right for me to. 

4. Finally.. None

This shouldn’t even be a category of retirement when all you plan to do is work all your life. So, just carry on as you have been doing for all through the years. However, if you don’t choose to retire, it is imminent that you plan aspects like healthcare, home management etc. more closely compared to other retirees. 

When you are deciding which kind of retirement is correct, make sure to consider some of the important criteria/challenges and changes the the new world has brought on. 

Longer life expectancy

People are living longer than ever before. This means retirement savings need to last for more years. Retirees are adapting their financial plans to account for extended lifespans. They’re also focusing more on staying healthy and active to enjoy their longer retirement.

Change in retirement savings plans

Traditional pensions are becoming rare. More people now rely on retirement pension plan and personal savings. This shift has put more responsibility on individuals to manage their retirement funds. Your saving plan should match your retirement desire.

Delayed retirement age

More people are working past the traditional retirement age of 65. This is a mix of financial needs and a desire to stay active. Some industries are creating specific roles to retain experienced older workers. Also, there are plenty gigs now available for people to work at.

Growth of encore careers

Many retirees are starting new careers or businesses. They’re using their skills and experience in new ways. This trend has led to more resources for senior entrepreneurs. It’s changing the idea of retirement from a time of rest to a time of new beginnings

Shift in inheritance planning

Retirees are rethinking how they pass on wealth to the next generation. Some are giving money to their children earlier in life. Others are focusing on experiences or education rather than just leaving money. This is changing family financial planning and the way wealth moves between generations.

Multi-generational living

It’s becoming more common for retirees to live with their adult children. This arrangement can help with costs and caregiving. It’s changing family dynamics and how homes are designed. Some retirees are even buying homes with their children to create multi-generational living spaces.

Want to discuss what you are thinking about retirement or need some help planning? Reach out us at Throat Frog and let's take this very important journey together.