4 Signs a Partial Retirement Is Right for You

4 Signs a Partial Retirement Is Right for You4 Signs a Partial Retirement Is Right for You Countless workers look forward to retirement and the chance to live by their own schedules. But going from full-time work to absolutely no structure at all can be quite the shock to your finances. And mentally, it can take a toll, too. Thats why you may want to consider transitioning into partial retirement for a number of years before making it a full-time thing. Here are just a few indications that a partial retirement might work best for you.Since the typical retiree cant live off Social Security alone, the only way to remain financially secure in retirement is to go in with adequate savings. Unfortunately, most Americans arent close to reaching that status. The average household aged 56 to 61 has a median savings balance of just $17,000, according to the Economic Policy Institute. And even over a shorter retirement, thats not nearly enough to pay the bills, even when combi ned with the $16,320 a year the average Social Security beneficiary currently receives.If your savings arent in particularly great shape, a partial retirement could be the ideal solution. This way, youll continue earning some income to either pay the bills or add to your nest egg, but you wont be maintaining the same rigorous full-time work schedule you were formerly committed to. Partial retirement might also allow you to delay your Social Security benefits past full retirement age , thus boosting them by eight percent for each year you do so (up until age 70).The fact that seniors are living longer is no doubt a good thing, but it also means that retirees nest eggs are being stretched increasingly thin. If your health is notably good for your age, and you have a family history of living to an older age than most, then it pays to consider a partial retirement initially. This way, youll avoid tapping your savings to the same degree (if at all) during the first part of retirement, th us enabling your limited funds to last as long as you need them to.Even if your personal family history isnt particularly geared toward longevity, you should know that according to the Social Security Administration, one out of every four 65-year-olds today will live past the age of 90, while one in 10 will live past 95. In other words, your savings might need to last longer than expected, so if youre otherwise ready to retire, doing so on a partial basis at first will benefit you down the line.Many people hate their jobs and aim to leave them as soon as possible. But if you enjoy what you do and it brings you satisfaction, it pays to continue working in some capacity rather than stop abruptly. Its often the case that as we age, our ability to work long hours and endure lengthy commutes declines (either that, or our patience for those things wanes). If youre getting older and your job-related demands are too much to handle, but you otherwise like your work, then reducing your hour s could be the perfect solution.Some people need constant stimulation, while others may be content relaxing and enjoying extended periods of downtime. If you fall into the former camp, then a partial retirement might help you avoid the one ailment that seniors are disproportionately prone to depression.Its said that retirement increases the likelihood of suffering from clinical depression by 40 percent, so going from a structured work schedule to potentially having nothing to do and nowhere to be is a scary prospect. Of course, you can reduce your chances of falling victim to depression by mapping out a plan for how youll spend your days before you retire, but an even better bet is to ease into retirement slowly, and give yourself time to get used to the notion of not reporting to work for eight hours or more per day.Though many older workers prefer to dive into full-fledged retirement, theres no reason why you cant consider a middle ground. Partial retirement offers those for who m its an option the best of both worlds a chance to get some relief from the daily grind without having to completely give up that paycheck or structure.This article was originally published on The Motley Fool . It is reprinted with permission.