What Semi-Retiring Can Look Like for You

Professionals go through different stages in their careers. Instead of working until retirement age and then stopping completely, today’s professionals are reimagining their trajectory. Younger professionals are prioritizing their work-life balance, stepping away from their full-time jobs to take soft breaks and working part time or freelance to make ends meet. Older professionals are choosing to continue their careers part time instead of traditional retirement to stay engaged and fulfilled in their later years. 

We’ll explore what semi-retirement can look like for you at different stages in your career.

What is semi-retirement?

Semi-retirement is intentionally transitioning from full-time employment to part-time or freelance work. Professionals approaching retirement age may choose this type of soft retirement to balance career fulfillment with the leisure and freedom that retirement provides. Retired professionals may also choose to reenter the workforce as freelancers, consultants, and part-time contractors for additional income and to enjoy the mental health benefits that having a career can provide.

A similar growing trend among Gen Zers and millennials is mini-retirement, taking extended and planned early or mid-career breaks for months or even years. Younger professionals are taking self-initiated pauses, enjoying micro-retirements, and leaving their full-time positions to freelance or take on part-time jobs to avoid burnout and pursue their passions. They may use this time to travel, focus on their mental health, and work on personal projects. 

In an episode of Work Week, the Upwork Research Institute explored how organizations will navigate the skills gap caused by the growing number of highly skilled deep-knowledge workers approaching retirement—the “silver tsunami.” Over 4.1 million Americans are turning 65 every year. However, many are choosing to stay in the workforce and semi-retire instead. Transitioning to semi-retirement can help organizations prevent this knowledge loss by hiring these freelancers or consultants. 

Listen to the full episode: 

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What semi-retirement can look like

Semi-retirement is all about flexibility and work-life balance. There’s no one-size-fits-all approach to this type of retirement planning. The goal is to create a career path that works for you. What semi-retirement can look like depends on your ideal lifestyle and level of financial security. It’s a novel way to manage not just work-life balance, but work-life integration, the ongoing process of blending your personal and professional lives to create something sustainable and enjoyable. 

If you love your current job but are looking to slow down, you could ask to become part time or stay on as a consultant to reduce your workload. Working as a freelancer is another option that allows you to remain in the workforce while having greater control over your workload and schedule. 

Many professionals are finding that traditional nine-to-five in-office employment is unsustainable. The Upwork Research Institute found that 71% of full-time employees are burned out and 65% report struggling with employer demands on their productivity. This burnout is one of the reasons that professionals, especially Gen Zers, are becoming freelancers to achieve a better work-life balance and prioritize their mental health and well-being. 

If semi-retiring sounds intriguing, let’s explore some of the most popular career paths. 

Become part time

Just because you turn 65 (or the full retirement age where you live), doesn’t mean that you may be ready to retire. Instead of coming to a complete stop when you approach retirement age, consider phasing out or reducing your role by becoming a part-time employee. While this may not be the traditional path, as semi-retirement grows in popularity, working part time at retirement age will become more mainstream. 

Part-time employment can be a win-win. You can work fewer hours, committing to just a few days a week or a couple of hours each day, and your company can still draw upon your expertise and knowledge. Companies may prefer a phased retirement, especially for higher-level roles. 

Decide how many hours each week you want to work. If you have an in-office role, you could offer to come in on set days each week. Semi-retirement by working part time at your current role can provide ongoing income and financial stability. 

If you want a less strict schedule, you could offer to be a consultant on a more as-needed and project basis. 

Another option for part-time semi-retirement is working in a completely different industry. Some professionals are choosing to retire from their careers and switch to low-stress part-time jobs and side hustles that feel more like a hobby, while providing income on the side for travel, additional financial security, and a social outlet. You could work at your favorite retail store (some stores give great employee discounts as an added perk) or become a substitute teacher, among other options. 

Freelancing

Professionals can soft retire as freelancers, offering their transferable skills directly to clients while having the flexibility to choose their work hours and schedule. Freelancers are self-employed individuals who work independently to provide their services to clients on a project-by-project basis. The two most common engagements are hourly or fixed-price.

In the Future Workforce Index, the Upwork Research Institute found that 28% of skilled knowledge workers now operate as freelancers or independent professionals, seeking greater autonomy, financial control, and meaningful work. 

Freelancers can work remotely, unless the job requires that they apply their skills on-site, like videography. Compared to other types of employment, freelancing gives you the most flexibility over when, where, and how you work. Typically, you can create your own schedule as long as you meet your deadlines. 

You can set clear communication guidelines before accepting a contract, letting clients know your typical working hours for responding to questions and scheduling meetings. 

It isn’t necessary to have experience freelancing to start working as an independent professional. Many freelancers take on smaller projects in the beginning and initially charge clients less to build their portfolio and gain reviews. 

Reach out to people in your professional network and let them know you’re taking on clients or join a freelancing platform like Upwork. On Upwork, you can submit proposals for jobs recently posted by clients that match your skill set. Everything you need to run your freelancing business is all in one place, from messaging clients to tracking your time and getting paid. 

Volunteering

Many professionals choose soft retirement for fulfillment rather than for financial reasons. Volunteering can be a great way to stay engaged and active as you transition from your full-time career. Full-stop retirement can be a significant change, especially if you’re used to working in an office and being surrounded by coworkers. Having a volunteer position can help create a new routine and provide social connection. 

If you’re interested in volunteering, you’ll find many different types of charities and positions available. You can get involved with your local community, volunteering your time at a shelter, soup kitchen, or other nonprofit in your area.  Charitable organizations also often need board members to help with decision-making. 

Places that often need volunteers:

• Animal shelters
• Soup kitchens 
• Thrift stores 
• Libraries 
• Senior centers 
• Hospitals
• Schools
• Museums 
• Cultural centers 

Planned downtime

A soft retirement could also be a sabbatical. Professionals may decide to take a planned career break between jobs, with the intention of returning to employment. If you’re feeling burned out in your current position and know you want to leave your employer, you could plan a break between quitting and finding another job.  

These breaks could be to travel, go back to school, or focus on mental health and well-being. How long your downtime is depends on your financial situation. Some professionals plan these breaks well in advance and take on part-time jobs or freelance work to build up their nest egg before their planned break. 

Why more professionals are choosing semi-retirement

Semi-retirement is gaining popularity as professionals start to feel burned out in their careers but may not be ready to stop working fully. Commuting to an office and working 40 or more hours a week doesn’t feel sustainable for everyone. High-stress jobs can negatively impact mental health and well-being, leading professionals to explore alternative careers and take breaks to recover. 

Stress aside, having a job can help those of retirement age stay mentally sharp, enhance financial security, and provide a fulfilling social outlet that combats loneliness and boredom. Continuing your career, but at a lower capacity, like going part time or freelancing, can give workers a sense of fulfillment and a healthy routine.

Professionals can enjoy the best of both worlds and continue to work beyond retirement age with more control, less stress, and time for what matters most. Freelance and consulting roles offer the freedom to set your own schedule, work remotely, and stay professionally active without the structure of a traditional nine-to-five, leaving more space for fulfillment outside of work, like engaging with travel, hobbies, and loved ones.

We’ll explore some of the main benefits of semi-retirement. 

Keeping the mind active

The American Psychological Association emphasises the importance of continuing to engage in mentally stimulating activities in retirement to help reduce cognitive decline. After exiting the workforce, some retirees are more likely to give up easily on complex tasks and goals, which can contribute to cognitive decline. Keeping the brain active by continuing to work at least part time or volunteering can help you stay mentally sharp and even reduce the risks of depression and memory loss.

Soft retirement can also help you maintain your skills and keep up with your industry if you need to step back from your full-time career. You could take on clients and work as many hours each week as you want. 

Freelancing during a soft retirement can also make it easier to get back to work after a career break. This is a great option for parents and other caregivers who need to reduce their workload to focus on other responsibilities without exiting the workforce completely. Freelancing helps you keep your professional network active and your skills current, so you're ready for whatever comes next.

Sense of purpose

Retiring or having to take a career break can lead to a feeling of identity loss. Besides earning an income, being employed provides structure to a professional’s week, along with goals and accomplishments. Working toward goals can give a sense of purpose, and accomplishing goals and receiving recognition for hard work boosts self-esteem. A professional’s work identity is often part of how they define themselves. 

Psychologist Abraham Maslow famously outlined a hierarchy of needs that all people share to help better understand human behavior. These needs are often depicted as a pyramid with the lower-level needs taking up the most space, illustrating their importance. Maslow theorized that basic, lower-level needs must be met to move on to the next. These are the needs from the bottom of the pyramid to the top: 

• Physiological needs: air, food, water, shelter, and sleep
• Safety needs: security and stability
• Love and belonging: friends, family, and  community 
• Esteem: respect, recognition, and self-confidence 
• Self-actualization: reaching your full potential 

While working at first may provide an income that allows for basic needs to be met, over time, it can also help with the higher-level needs that are related to personal growth. 

Soft retirement and working part time can help retirees and caregivers retain a sense of purpose, self-esteem, and self-actualization. Flexible work arrangements like freelancing make it possible to work as little or as much as your schedule permits. Even working just a few hours a week can provide an essential sense of purpose and help you retain your professional identity. 

Maintaining a sense of purpose through work can be especially meaningful for caregivers, such as parents, who want to focus on family while still staying connected to their professional identity. Abruptly shifting from full-time professional to full-time parent or retiree can be a difficult adjustment. Freelancing can help maintain their skills and make it easier for them to return to full-time work if they choose to. 

Social connection 

Semi-retirement can provide social connection and a sense of community. Retirement can feel lonely and isolating, especially if you’re used to being in an office or having frequent video calls with coworkers. 

Working a flexible job instead of fully retiring allows professionals to enjoy the social aspect of employment without having a strict schedule. They can work while still having room in their schedule to build a fulfilling life outside of their career by traveling and seeing friends and family. 

Freelancers work one-on-one with their clients. Building these relationships takes strong communication skills. As a freelancer, you may need to meet with your clients frequently over the phone or video call and send messages to check in. When working on long-term contracts with clients, you may get to know them on a more personal level. 

Networking with other soft retirees can help build your social circle. You can post on LinkedIn or Facebook to connect with other like-minded professionals online or check for local events in your area. Having a network of other semi-retirees can provide support and be a professional sounding board as you embark on this next phase in your career. 

Supplemental income 

Once you reach retirement age, you can start receiving retirement income, like social security benefits (in the U.S). You’re still allowed to keep working. Make sure you do some retirement planning research first–if you’re not at full retirement age or earn more than your yearly limit, these benefits can be reduced or additionally taxed. Semi-retiring is a way to supplement the income you have from your retirement funds. 

Continuing to work after the retirement age can give you additional financial security. You can use this income to help make ends meet or save for emergencies. If you’re feeling financially secure, the money you earn from your part-time job can fund your hobbies and travel. 

Some professionals are aiming for early retirement—Financial Independence Retire Early (FIRE) and incorporate part-time work into this strategy. This form of semi-retirement is called Barista FIRE. These professionals may not have the financial security to retire completely, but can freelance or work part time in a lower-stress or more flexible job to cover their living expenses and maintain some paid benefits. 

Professionals can combine their retirement savings with a part-time job like being a barista to maintain a cash flow and achieve a semi-retired life. Working part time can also help with health care costs. 

In Spanish, the word for retired is “jubilado,” which comes from the Latin for joy. Retirement can mean not just stopping work, but striving for greater joy. A semi-retirement can help meet all your needs from physiological (or financial) to self-actualization, providing a joyful work-life integration.

Growing trend of mini-retirement 

Instead of living to work, some Gen Zers and millennials are working to live. They’re reimagining what working and having a career can look like. This younger generation isn’t defining success by how much they earn. Instead, they’re focusing on work-life balance, flexibility, and mental health to combat burnout and reject the outdated grind culture. Having the time to do what they want or need to do may be more important than having money. 

Gen Z and millennial professionals are choosing to freelance or work part time instead of having a traditional nine-to-five. They want to be able to make their own schedules, choose the projects they work on, and have the flexibility to work from home or anywhere. These professionals want to reduce their work-related stress and cultivate a life outside of work, focusing on their hobbies, relationships, and travel. 

The Upwork Research Institute found that more than half (53%) of Gen Z professionals dedicate the majority of their working hours to freelance projects, abandoning traditional jobs, and seeing freelancing as a fulfilling career alternative. 

Mini-retirements are a growing trend emerging from this shift in mindset. Professionals are taking extended breaks in the workplace and choosing to freelance or work low-stress part-time jobs. They can use a micro-retirement time to focus on their mental health, rethink their careers, or spend time traveling. 

A mini-retirement could be anywhere from a few weeks to months, or even years long, depending on the professional’s financial situation. One mini-retiree may save up and then take three months to fulfill their dream of backpacking through Europe. Another professional may feel burned out in their corporate job and decide to quit and work at a local coffee shop for a few days a week and rethink their career path.

Listen to the Work Week Podcast on Mini-Retirements to dive deeper into this trend: 

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Start your semi-retirement journey on Upwork

Reimagine what the next phase of your career will look like as a freelancer on Upwork. You can take the skills you’ve honed over the course of your career and offer them directly to clients on your own terms. Decide how many hours you’re available each week and only accept projects and clients that interest you. Create a profile on Upwork and see what jobs match your skills and interests. Freelancing can let you enjoy the best parts of retirement while also having career fulfillment and financial security.