Don’t Retire Off a Cliff

Retirement is often treated like a light switch: Friday you work full-time, Monday you’re retired.

For many folks, that cliff-edge transition creates a bigger adjustment than they expected. The better approach may be to retire gradually—giving yourself time to replace the structure, purpose, and relationships that work provided.

I recently saw this work especially well with a business owner who began stepping back rather than walking away. Instead of selling everything and suddenly becoming “retired,” she reduced her involvement by gradually reducing the number of clients she works with. This is allowing her to discover what she wants her next chapter to look like.

For a business owner, the opportunity is often built into the business itself. A gradual transition can involve developing the next generation, reducing hours and responsibilities, and eventually moving from operator to mentor.

For a W-2 employee, the transition may look different. Your employer may not offer a gradual path, so you may need to create one. That could mean moving to part-time work, consulting, teaching, volunteering, or pursuing an entirely different type of job or experience. The goal isn’t simply to stop working—it’s to start replacing what work gave you.

The hidden benefit to this approach is that the extra income earned during the transition phase can go toward your ongoing expenses and help you avoid tapping into your savings.  In other words, doing the transition can allow for an earlier start to retirement!

Retirement planning isn’t just about having enough money to stop working.  It’s about designing what comes next.