A significant percentage of American workers favor the idea of semi-retirement before they transition into full retirement, a study from HSBC shows. Currently, 19% of people ages 55-64 already consider themselves semi-retired, with another 32% hoping to move in that direction. In other words, more than half of this demographic has or is likely to move in this direction.
Even younger people favor the concept, the study found, with more than 40% of people ages 25-44 considering semi-retirement. But only 27% of workers ages 45-54 like the idea of semi-retirement.
Some respondents indicated that they enjoyed working and that it provides mental stimulation; for others it is a big part of their identity. Of course, many people cannot afford to retire, which may pose a problem since only 22% of workers were offered semi-retirement opportunities.
Two more problems: If all Baby Boomers retired at 65, with men expected to live 17 more years and women even longer, the lack of qualified workers might cause massive inflation — and the burden of supporting those who have not saved enough would put even more strain on the economy.
So with people living longer and technology that makes it easy to work remotely, the idea of retiring at 65 might need to be retired itself. Even the word may need to be changed — “transitioning” perhaps — as people want the stimulation and social interaction of work and many need the extra income. But semi-retirement may only be available to workers who have the types of skills that are suited to part-time or remote employment.
The world has changed dramatically since 65 was pegged as the official retirement age — why not the concept of retirement?
