A number of seniors are opting for partial or phased retirement, which will allow them to enjoy the benefits of “both worlds”.

This opportunity allows them to be still engaged in the workforce, working reduced hours, or even still working a 40-hour work week while receiving pension income. Working adults who are healthy and active may not be mentally prepared for normal retirement. Some employers in both government and private sector seek to re-employ retired employees by offering them new contracts, which allow these employees to continue to earn while the employers retain the knowledge, training, and experience in-house.

Meanwhile, some self-employed individuals or business owners continue to be fully involved in the day-to-day operations of their organisations, providing they are still healthy and fit. At the same time, some chose to invest their pension payouts in their businesses or other long-term investments.

Other business owners or self-employed seniors who are not participants in a formal pension plan continue to work to build up their retirement fund for the future years and pursue the creation of generational wealth. Yet, other owners of businesses and self-employed individuals prefer to work fewer hours or work in their businesses on a part-time basis with a phased retirement plan in mind. This partial-retirement option allows them to have more leisure or family time, keep their minds and bodies active, and help prepare them to eventually be ready for full retirement.

There are also working professionals who are nearing retirement age but are not in a financial position to enjoy retirement. They are seeking to beef up savings and investments for full retirement, working flexible hours, engaging on a new career path, or pursuing business interests. Partial retirement seems a viable option as they will be able to delay retirement, focus on debt reduction, and phase in the retirement years.

I recall many years ago, a former boss who was on retirement called to ask whether I could assist her in attaining a part-time job in a back office. I was floored by the request. She was an executive who spent many years in the financial sector at a senior level. One would have thought that a retired executive would be satisfied with a lucrative pension. It took me years to process and understand the phenomenon of phased retirement. In the scenario mentioned above, earnings were not the priority in choosing partial retirement. The need to be socially engaged is actively contributing to a worthy endeavour. The utilisation of skills, training, and experience that will contribute to the growth of an organisation and provide peace of mind.

A less stressed, low-level job was part of the journey to full retirement while she pursued her creative passion which brought her much joy and a sense of purpose.

Persons choose partial retirement for two reasons. For some they must continue to work for much-needed extra income. Secondly, others prefer partial retirement because they just love to work or to enjoy the accomplishment that working can bring and remain active. Working for extra income can go a long way in clearing debt so one can entire full retirement debt-free or much-reduced debt. Some retirees have little or no emergency funds. Should an unforeseen emergency occur such as huge medical expenses, there are inadequate resources to meet the need. Others have to work to meet ongoing living expenses as the pension income may just not be enough and inflation continues to be a worrying factor.

Partial retirement offers many opportunities. Why not be a freelancer? Earn extra income for travel and vacation. Reduce credit card debt, which can easily balloon in retirement Turn your passion into passive income. If you are working fewer hours, there is the opportunity to get involved in charitable endeavors. Once your mind is actively engaged, it helps with your overall well-being.

Co-founder of the Huffington Post Arianna Huffington says, “Others will keep working because the ‘gold’ in our so-called ‘golden years’ doesn’t have to come from watching sunset”. Since people are living longer, why not stroll into full retirement instead of sprinting to it?

Grace G McLean is Financial Advisor at BPM Financial Limited. Contact her gmclean@bpmfinancial. and visit the website: www.bpmfinancial.com. She is also a podcaster for Living Above Self. E-mail her at livingaboveself@gmail.com