Semiretirement: The Future of Work?

Jane Genova

“Semiretirement," according to Finance Strategists, is a “transitional stage between full-time work and complete retirement.” That, it indicates, will play out as fewer hours of labor and more of leisure. And that was the traditional way many understood being semiretired: “work lite.” No surprise, the semiretired often were perceived as “less than.”

Real work, maybe more real than careers

Investopedia takes semiretirement more seriously and with more respect. It positions it as a way of earning income from work post-career that is long-term and perhaps permanent. Almost 60 percent of us are going for it. Some are in their 30s and 40s, a new wrinkle on FIRE (Financial Independence Retire Early). Those youth have experienced enough of chasing a career but still want to bring in income. If enough of them embrace this version of FIRE careers, at least as we have known them, could become an anachronism.

No longer the rat race

The major feature of being semiretired is flexibility, not leisure. Because it’s not strictly a career there could be less pressure. The primary objective is earning income, not “getting ahead.” Boomers used to refer to that ethos of striving for upward mobility as the “rat race.”

Obviously the semiretired can have control over the terms and conditions of their labor situations. Careerists not so much.

This model resembles that of the freelance one, which accounts for about 38 percent of the workforce. The difference is that the semiretired had traveled traditional career paths, while freelancers might or might not.

Infinite prospects for marketability

What to sell on the labor market? The semiretired can continue leveraging their career skills, develop other forms of marketable expertise and/or launch an enterprise. The situation should be fluid. Actually, it has to be. The market can change on a dime. Yesterday a solo public relations consultant peddled media relations. Today they have to develop relationships with influencers. Tomorrow, they may have shifted to being full-time contract tour guides.

The shrinking career

Meanwhile, as Pro Publica’s research makes clear, careers are already shorter. Beginning at age 50, the majority of professionals will be forced out. If they land another job in that sector only 10 percent will earn comparable compensation. In the high-octane Big Law sector partners are tending to pack it in during their 50s because of the extreme work demands.

How we got here

Use the cliché, a perfect storm. So many factors have come together to accelerate the stampede toward semiretirement. The key ones are:

The vanishing white collar job. Flattening of organizations, technology, mergers creating redundancies and changing patterns of demand are not only triggering massive layoffs. Those particular jobs probably won’t come back.

Professional anonymous networks Blind, Glassdoor, Reddit and Fishbowl chronicle the pain of the terminated who are locked out of their careers. Sure, other jobs may evolve to replace those lost but bills have to be paid in the now. Semiretirement makes sense in so many ways.

Stress from longer hours, higher performance standards, no right to disconnect. Some human beings can’t take it. Others experience early burnout. Meanwhile there is a growing expectation, especially among younger workers, for work-life balance.

Members of Generation Z, many of whom value wellness over conventional success, might try out a career path or even a few and then slide into some form of semiretirement. The Alpha Generation could follow that pattern.

Toxic co-workers. The overly demanding workplace conditions are not only the result of employer mandates. Hyper-ambitious employees are also determined to get an edge by outperforming peers, raising the bar for everyone. In a Bloomberg Law interview Brad Karp, chair of law firm Paul Weiss, noted that the organization was putting the brakes on excessive work by, for example, enforcing taking vacations. No surprise, all generations are pushing back on the Return to the Office. Instead of returning, they might simply semiretire.

Triple whammy of inflation, longevity and elimination of pensions. Full retirement is less of an option. The collective angst is about outliving one’s money. The fastest growing group among the homeless is the aging. Of those who do retire, found a Fidelity study, 37 percent unretired to be able to pay the bills for essentials. Inflation may escalate during the Trump administration.

Delaying Social Security. Not only is there a financial penalty for taking Social Security early. There is a financial reward for waiting until age 70.

Side benefits of remaining working. Being in the labor force provides social activity which in itself is a plus for physical and mental health.

The public-relations sector piece

How vulnerable are public relations professionals to job loss and the premature end of a career?

Actually, this sector hasn’t fared worse than many others. The past few years have been rough with half of agencies reporting a decline in revenue. Even Edelman conducted a layoff with most of the terminated consisting of senior representatives. On Reddit Public Relations many former pros report they can’t land jobs.

However, a recent survey found that almost half of the agencies were hiring. Vault projects six percent to eight percent growth through 2028, with about 24,000 jobs added.

The headwinds, though, are intense. They include consolidation. That makes positions redundant. AI, which will be applied more, is not only about making current operations more efficient. It can retrofit them to eliminate entire functions. No need for that department. The integration of marketing will continue to disrupt everything from power to head count.

Employees will have to continually assess if they want to follow a career path or make the move into the myriad opportunities available in semiretirement.

Not jumping right in

Working to earn income is a serious financial matter. Those making the shift from a career position or the search for a job in their field to semiretirement have to do detailed due diligence about the tradeoffs for flexibility and more control. The decision entails:

Living expenses. Depending on who’s doing the counting, 60 percent to 80 percent live paycheck to paycheck. The semiretired may no longer have a paycheck from their labor, at least not initially. And they might not have that on a regular basis. Even if they do steady part-time gigs those could go poof. Calculated has to be if government entitlements, pensions and investments can float the boat, no matter what.

Having something or somethings to market. And knowing how to sell it. Unlike careers, semiretirement has no infrastructure.

Earning potential. That can be directly correlated with the what kind of services/products are offered at what price points and involving how much effective salesmanship. A post on Reddit Public Relations boasts about billing at $900 an hour. What is realistically possible?

Financial complexities. Those taking Social Security early have limitations on earnings. Those on Social Security and Medicare who earn beyond the threshold will have to pay an adjusted Medicare premium which ranges between $230.80 and $560.50.

Health insurance. Until there is Medicare eligibility at 65 (that could change) the burden is for the semiretired to protect themselves from catastrophic medical bills. Health insurance is expensive. In itself that might deter from taking this option. The majority of bankruptcies result from medical bills.

An interim measure could be to continue with the employer’s plan through COBRA. Usually that is no bargain. For the married they might hitchhike on their spouse’s coverage. Some part-time jobs provide health insurance.

Sense of self. Being semiretired versus working full-time in a career that offers the promise of increasing success continues to carry stigma. The American brand of capitalism is unforgiving. Those needing external validation might stick on a career path.

Just like the freelance model caught on

At any point in a career or after too long a period of unemployment and at any age professionals could decide to opt for the flexibility, control and almost infinite work opportunities of semiretirement. That, similar to freelancing, could evolve into a standard model of work. As careers continue to become shorter, semiretirement could become the future of work.

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Jane Genova specializes in coaching seniors and creating their work-related communications. Visit her Substack column JaneGenovasubstack.com/@semiretirement and popular blog https://thesemiretirementoption.blogspot.com/. Complimentary consultations. For an appointment text 203-468-8579, [email protected]. Sliding scale fees.