Running a business can be overwhelming. It’s easy to feel stretched thin, and like there’s never enough hours in a day. At times, you’ll probably fantasize about retiring early, ditching the suit for sandals, and kicking back on a beach somewhere.
However, these fantasies can come from thinking you’re in a retirement binary. One where you’re still working and saving, or you’re done forever. But as a small business owner, there’s a third option- a semi-retirement. (Watch our recent webinar on this topic)
The reality is, work often plays a major role in keeping our lives moving forward, and feeling meaningful. And that’s been backed by studies on unemployment and retirement. One study conducted by the Department of Economics at Washington and Lee University, found that long-term unemployment had significant negative impacts on one’s mental health. And that these effects were particularly acute in those with more education.1
Another Federal Reserve study found that 30% of its respondents eventually returned to work even after retiring early due to burnout. This significant portion of those studied felt that retirement didn’t necessarily mean the end of work itself, and many didn’t enjoy not working.2
As a successful business owner, there’s no question that you’ve worked hard. But a switch to a completely work-free life may leave you unfulfilled and unhappy. If you’re looking to spend less time at the office, you may want to consider stepping back before wiping your hands clean.
A semi-retirement plan offers many perks. For one, you get to retain your ownership status while exploring a variety of work-life balances. This in turn can help you rekindle old passions, find new hobbies, and spend more time with the people and causes you care about.
Additionally, semi-retirements aren’t etched in stone. Compared to selling your business, or hiring a CEO, the changes are far more reversible. With a more flexible retirement, you’re given plenty of breathing room to continue experimenting, or return to prior ways.
Semi-retirement won’t mean the same thing to everyone. Some approaches are very hands off, some just a reduction in scope, and some are a total change in role. Below is a list of ways to get your feet wet in semi-retirement waters:
The best way to prepare for semi-retirement is through proper succession retirement planning. This is the process of designing an action plan for employees to keep the critical components of your business running smoothly even as you dial back your responsibilities. You can explore the avenues of only a partial retirement by considering, and acting upon the following:
At The Advisory Group, we love helping our business owner clients succeed. It’s a privilege to watch their businesses grow, evolve, and have an impact in the way they envisioned. And it’s even more rewarding to help them fully reap the retirement benefits of all their hard work.
We understand that not everyone wants to drop everything in retirement, especially those who’ve built a business they love. That’s why we specialize in structuring a retirement that fits the needs of our high-achieving clients.
Together, we can help you step into the world of semi-retirement with confidence. And you’ll feel secure as you explore the retirement lifestyle that’s right for you. If you’re ready to take action, set up a complimentary consultation, or call us directly at (415) 977-1200.
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