REAL MONEY, REAL FAMILIES Want semi-retirement? Try 1-degree turns

By Luke Erickson

Betty White said, “Retirement is not in my vocabulary. They aren’t going to get rid of me that way.” Betty worked as a professional actress for 76 years, lived to be 99 years old and was working until age 97. What gives, Betty? That’s not the plan most of us Americans buy into.

Retirement is part of the American dream. It’s a long-standing ideal. A carrot. A light at the end of the tunnel, if you will. And most of us will, because there’s nothing more American than the idea of being rewarded for showing up for 40+ years of hard work.

There are some catches though. First, because of increasing average life spans, you’ll need to save more money, possibly delay retirement a few years. And because we have a Social Security system that is on a fast-track to bankruptcy, retirement age is getting later and later. The carrot keeps moving the closer we get to it. And, of course, there’s never a guarantee that just because you make it to retirement age you’ll have the necessary health or energy to fully enjoy it. The late American humorist, Robert Benchly, said during his retirement, “As for me, except for the occasional heart attack, I feel as young as I ever did.”

Is this really the best plan? To spend your best years doing things that you don’t really want to do, just so you can spend your twilight years wishing you had done more when you were younger and had better health and energy?

A minority of people (probably those who failed the famous Standford Marshmallow experiment which tests delayed gratification) have decided not to wait until retirement to pursue their lifelong goals and to make sure they’re enjoying life fully right now. This is a concept called semi-retirement.

The concept of semi-retirement isn’t new. The definition that most people think of is someone who retires from their career but still needs a little money to help see them through retirement, so they work part-time, maybe as a Walmart greeter, a school bus driver, etc.

THE OTHER definition of semiretirement is the one I’ll be talking about here. That is working and spending in a way that reflects your life’s purposes, values and goals.

“But the bills still have to be paid!” Indeed they do. But which bills? The ones for the house that is bigger than you really need, and for the car that is more status symbol than transportation? There’s nothing wrong with these types of things in your life – as long as they are what you’re willing to live and work for. But if your life has other priorities, purposes and goals, you might consider making some adjustments, because how you spend your time and money is ultimately who you are and what you value

The concept of semi-retirement is not limited only to aligning spending with our values and priorities, it also involves earning money this way.

Many of us show up every day at jobs that have nothing to do with what we value or prioritize in life. “But it’s solid work and pays the bills!” I agree, and I don’t criticize this. Most of us have to do things we don’t really want to do in life. That’s called being an adult. After all, we can’t all be rock stars and astronauts, can we?

Author, Martha Beck, talks about making 1 degree turns in order to bring our behavior more in line with our values. Let’s say you value music and the idea of being a rock star. And let’s say you’re 50, and you’re a computer engineer with 4 kids. You love your kids and you like your job well-enough and it pays the bills. So why mess with that? No reason, except that you’re completely ignoring a value that is trying to bring joy to your life. Are you a lost cause in this case?

Beck says “no.” All you have to do is start making 1 degree turns. You start by spending 10 minutes every night for a month assessing your musical talent, experience, resources – your first 1 degree turn. The next month you bump it up to 15 minutes and start fiddling with your chosen instrument, another 1 degree turn. The next few months you bump it up to 20 minutes a night (1 degree). You start exploring classes and others with a hobby level musical interest (1 degree). After a year or two you’ve made a series of 1 degree turns, and you may find that your computer skills are really handy for making music. You may discover a new group of friends who like to jam together. You may start working on covers together, then a few originals, then book a couple of small gigs, maybe self-publish an album. A series of 1 degree turns to put your time use more in line with your values. Money may follow from some of these gigs. But even if it only ever amounts to a hobby that pays for itself, you’re still experiencing more of what life has to offer you, and it’s hard to put a price on that. You are getting a reward in life that, if delayed until full retirement at 67, is that much harder to come by.

Aside from this “hobby rock star” example, another area of time use we need to explore is our working hours. You may think, my job is what it is, and I can’t change it. But 1 degree turns, remember? Your first 1 degree turn could include discussing your values and interests with your boss and coworkers. See if there are opportunities for some minor restructuring of projects or responsibilities into something that interests you a little more (1 degree turn). In the end, these types of “asks” usually result in a win-win because you end up flourishing at this particular project area and do a really good job with it because you find it interesting, and your boss looks good for putting you in charge of it. Gradually add some more 1 degree turns and you might see a new position created for you, or even a job change.

The first step to figuring out if you can semi-retire is to figure out w hat you would be doing if you had no responsibilities. How would you be spending your time? How would you fill your day? What are your values, goals, and desires?

Next step is to simply start with a single 1 degree turn. What is the smallest step you can make in the direction of semi-retirement? Don’t buy the lie that you have to wait until retirement to live the life you truly want to live. Start making 1 degree turns in that direction now. And if you need a little inspiration, just ask yourself WWBWD, or, What Would Betty White Do? If you love your job and are living your best life, there’s no need to stop it at 65 or 67, is there? Find it now and enjoy it until you’re 99!

Luke Erickson, Ph.D., AFC®, is an associate professor of personal finance for the University of Idaho. He works and lives in the Treasure Valley. @drlukeerickson (Instagram), erickson@uidaho.edu