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Home » Pretirement Planning: Making the Most of Your Career and Retirement

Pretirement Planning: Making the Most of Your Career and Retirement

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Workforce changes and demographic shifts pave the way for a new working state dubbed pretirement. The concept of working until you’re 65 and then suddenly retiring has been the norm for generations. However, recently, we’re seeing that early retirees aren’t as interested in giving up on making a living and instead continue to take part-time jobs well into their retirement. 

This new concept isn’t popular with every retiree, but many aren’t as comfortable giving up working again altogether. If you’re one of these people, you’re probably unaware of pretirement and what it is. If so, this guide will walk you through the concept of pretirement, what it is, and how to go about pretirement planning to make the most of your career and enjoy retirement at the same time.

What is Pretirement? 

Pretirement is a new working state that bridges the gap between full-time employment and retirement. In its essence, it is a flexible arrangement where you can work part-time, take on consulting or freelance projects, or start your own business while still enjoying retirement. 

The state of pretirement allows individuals to continue working and earning an income while gradually reducing their workload and transitioning into full-time retirement. As a result, Pretirement offers more leisure time and less stress while maintaining a sense of purpose and fulfillment.

Pretirement aims to ease people into retirement instead of abruptly halting their existing employment arrangement and going into retirement. Pretirement is positioned between traditional employment and retirement and is gaining popularity in first-world economies with aging populations. But considering the unfamiliar aspect of this concept, many early retirees struggle to go about pretirement planning. 

Why is Pretirement Gaining Popularity? 

As with any new or emerging concepts, it will take time before pretirement becomes the norm. While at is, we cannot say for certain that pretirement will become the new norm. With that said, pretirement is trending due to a variety of factors. Here are some reasons why people are deciding to try pretirement: 

  • People are living longer and healthier lives, allowing the retirement age to be pushed back.
  • The cost of living is increasing, and individuals cannot afford to retire fully at 65.
  • Many individuals aren’t ready to give up their careers entirely and want to continue working in some capacity.
  • Pretirement allows for a better work-life balance and more time for personal interests and hobbies.

These factors aren’t the sole reason pretirement is gaining popularity in first-world economy countries with aging demographics. But it helps paint a picture of the need for individuals to continue working in some capacity. So if you’re considering trying pretirement, careful planning is crucial to making it work for you. Therefore, let’s see how to plan for pretirement. 

5 Steps to Plan for Pretirement

Whether you’re forced to remain in the labor force in your retirement years or want to try pretirement to escape boredom, the reality of the modern world forces many to seek working opportunities past 65. That means many are preemptively planning for working in retirement, regardless of the situation they find themselves in. Here are the steps to prepare for pretirement:

Step 1: Determine Your Financial Situation

The first step in pretirement planning is assessing your finances. That means assessing your income sources and savings to determine whether you can reduce your workload or take part-time jobs and gigs. 

In this first crucial step, individuals must come to terms with the outcome. For those with little to no savings in their accounts, pretirement might be the only solution for a stable life in retirement. 

Step 2: Assess Your Skills

The reality is that old age limits your part-time employment options. Many individuals who’ve worked labor-intense jobs and lack the skills to transition to other areas will have difficulty identifying employment options like before while in retirement. 

Therefore, the next step in pretirement planning is to determine what you’re good at and how to apply said skills by working part-time or freelance gigs. 

Step 3: Lower Your Living Standard

Whether pretirement appeals to you or not, it’s well-known that retirees don’t make the same money as they used to. So unless you have a stable investment portfolio and passive income to support your existing lifestyle in retirement, you’ll need to lower your standard of living.

Determining how much, however, is nearly impossible, as unexpected costs are equally impossible to predict. 

Step 4: Identify Passive Income Ideas

The best way to support your lifestyle in retirement is to supplement monthly paychecks with passive income. However, again, you’ll need time to build up your passive income portfolio. Fortunately, there are options out there. For example, one of the best passive income ideas is to turn to rental properties, such as rental condos or self-storage units

Another option is to build up a stock investment portfolio. But unlike rental properties, investing in stocks and other commodities takes years to bear fruit. 

Step 5: Plan Ahead of Time

It’s impossible to plan for pretirement at 65; you need years to prepare for it. This final step may be obsolete for many individuals who lack the financial capacity to support their families on a pension. But if you’ve got time, planning is key to making sure you’ve got enough money to retire while remaining in the workforce in some capacity. 

Benefits of Pretirement

Pretirement is more than just a solution to maintain your current income level. Quite the opposite, pretirement offers numerous benefits for individuals not ready to quit working. Here are some of the main pretirement benefits:

Improved Work-Life Balance

Pretirement provides more leisure time, which can lead to a better work-life balance. This allows for more time to pursue personal interests and hobbies while still working in some capacity. 

Reduced Stress

Pretirement can be less stressful than retirement, as you have more control over your workload and schedule while enjoying your retirement years. This can lead to better mental health and well-being.

Sense of Purpose

Many people find purpose and fulfillment in their careers, and pretirement allows them to continue working in some capacity. In addition, many people lose their sense of purpose while in retirement. Retirement can lead to boredom and loss of meaning in life. So one way to negate the adverse effects of retirement is to ease your way into retirement. 

Continued Social Connections

Pretirement allows you to stay connected with your professional network and colleagues. This can lead to continued social interactions and personal and professional growth opportunities.

Financial Flexibility

Despiting providing numerous additional benefits, the main benefit of pretirement is financial flexibility. Pretirement allows you to continue earning an income while reducing your workload by some margin. This can help you maintain financial stability while enjoying many retirement aspects.


Pretirement offers individuals the opportunity to transition into full retirement gradually. However, pretirement requires planning. So planning for pretirement is essential to ensure a smooth transition and a successful pretirement. With the right planning and preparation, pretirement can be a fulfilling and enjoyable stage in your career and retirement journey.


What is pre-retirement?

Pre-retirement or pretirement is the time before retirement and after full-time employment. It is a new working state between full-time employment and retirement.

What is the pretirement age?

The pretirement age varies because pretirement is the stage where you ease into retirement and, in many cases, well into retirement. Therefore, the pretirement age for men is up to 65 and 62 for women.

How to plan for pretirement?

To plan for pretirement, you need to do the following:
Determine your financial situation
Assess your skills
Lower your living standard
Identify passive income ideas
Plan ahead of time

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