More people are choosing semi-retirement in their later years. As opposed to full retirement, it entails lesser time spent on work thus allowing more time for the important things in your life.

A happy retirement doesn’t need you to earn a six-figure salary, invest more than half of your earnings, or slog it out in a job until you are 60 years old.

If you are keenly looking forward to retirement but cannot fully retire yet, then semi-retirement is a good way to ease off some work stress.

Semi-retirement fits people earning a moderate salary as it can act as a transitional period before embracing full retirement.

You could be anxious about what you will do with your time during full retirement. After decades of working, the stark difference may trigger a sudden loss of meaning in life.

Semi-retirement is a good opportunity to try pursuing other hobbies and interest outside of work. What a wonderful way to prepare for a satisfying full retirement!

The following tips can help you speed up the transition to your ideal semi-retired life.

1. Ask yourself why you want to pursue a semi-retired life

Question yourself why you are doing this before you continue. If you decide that the semi-retired life fits you well and you want it, then the next steps are:

Identify the things that don’t fit well with your current life. Is travelling to and from work taking too much of your time? Do you dislike the workplace? Do you need more exercise time?

What are you going to do if you have no shortage of money and time? Give priority to the things important to you. If you have a spouse, ensure he or she is in it with you.

Don’t be too enthusiastic about saving too much too soon. Stay focused but be moderate and exercise balance. Otherwise, resentment can quickly set in. You still need to have some enjoyment while saving for your future semi-retired life.

2. Do thorough budget planning

It’s time to put a plan in place. Ask yourself these questions:

What is the state of your finances, savings, investments and liabilities?

When do you plan to start your semi-retired life and how long would it be for?

What is your source of income during semi-retirement? What you plan to do in semi-retirement? What is your budget now compared with the planned budget during semi-retirement?

You may make a wrong decision if you leave your full-time job before getting carefully thought out honest answers to the above questions. You may want to consult a professional financial advisor.

3. Spend less than your earnings

You must spend less than you earn and the balance should be saved and invested. Your assets are a resource for making more money.

Don’t use it for unnecessary purchases. With today’s increasing lifespans, you’re looking at living decades more and that costs money. Keep your money invested to work harder for you. Money earns money.

Cut down your expenses to only necessities. No more big-ticket item purchases. Study and learn from your peers who are already in semi-retirement.

4. Find work you enjoy and decide the working hours

Semi-retirement is where you are intentionally working part-time so that you have more time available for other pursuits. This is one of the main reasons you opt for semi-retirement.

To be content in semi-retirement is to remain active and involved with the world. Do something that engages your mind.

Here are a few ways for a semi-retiree to continue working:

• Start your own business. Work from home, freelancing or consulting.
• Continue in the same industry but be willing to take up a less demanding position.
• If you love your current job but not the long hours, negotiate with your boss for shorter work hours.
• One benefit of a part-time job is the flexibility of the working hours.
• Consider a contract job.

5. Take care of unexpected costs

Accidents, injuries and chronic illness are examples of unexpected events which require you to spend a substantial sum of money.

Ensure you have emergency funds to take care of these financial implications. The emotional toil will likely be exhausting so plan well to avoid adding financial distress to the situation.

A good insurance policy is a must for as you grow older, health issues are common.

6. Start saving/investing consistently and clear your debts

You still need a comfortable sum of money for your semi-retirement and later your full retirement.

Get used to regularly setting aside a part of your income to enable you to get ready for the future. The more money you make, the better your semi-retirement transformation will be without risking the comforts you have planned for full retirement.

Start a new bank savings account and make sure you don’t use it unless you absolutely have to.

Concentrate on repaying existing debts as these can hamper your ability to build a financial security plan.

This article first appeared in MyPF. Follow MyPF to simplify and grow your personal finances on Facebook and Instagram.