We all go through times in our lives where we feel that work is just getting too much and we could do with a break from it. Or it could be that we would like a break away from where we are living or to get away from family for a while. This type of mini retirement can be a really tempting option but you may just not consider that it is possible. However, there are ways that you could make it happen.
Take an Unpaid Leave of Absence
There are many companies that will allow their staff to take extended leave as long as they agree not to be paid. This can be a good thing for employers and employees as they will come back feeling refreshed and enthusiastic and the company can employ a temp to replace you while you are gone.
It will allow you to get a taste of what it will be like to be retired. You will be able to see whether it really is as good as you expected or whether you miss working, being where you live or with family. Some people find it boring not having something set to do each day, but others really enjoy the freedom and relaxation. It will also allow you to see what it will be like financially without having a regular income and whether you will be able to cope. It could make you feel that you will not be able to afford to retire or that you will be able to manage and will do so quickly.
Save up for an Extended Holiday
Another idea is to take an extra-long holiday from work. You could save up your annual leave and see whether you could take it in a big batch. You will have to save up some money as well. Or take out a payday loan. If you are going away on holiday then you will obviously have to pay for the holiday and find that money for that. It is important to make sure that you have enough though. It can be tempting to think that the cost of the holiday will just be the cost of the accommodation and travel. However, even if it is an all-inclusive holiday there may be some food and drink costs and if it isn’t then this will be a significant cost. It is important therefore to make sure that you allow extra money just in case.
Leave Work and Start Contracting/Freelancing
It could help you to take a step towards retiring if you give up your permanent job and work differently. You could work as a contractor or do freelance work. This means that you are freer in the sense that you do not have to work all of the time. It may be that youw ill be able to find better paid work which will allow you to be able to afford to work for less time. It is likely that you will still be working full-time hours, but you may not work all of the time. You could take on shorter jobs which only last a small amount of time and therefore have time off in-between jobs.
Swap to part-time working
Another option is to change to part-time working. It can mean that you will be working every day but for fewer hours or you just work for a few days a week. Either way it is a way to reduce how much you work and could be seen as a semi-retirement. It is a step towards complete retirement and can be a good way to get used to having a lower income as well as more time on your hands and therefore will help you to transition towards retirement.
Start a Pension or Early Retirement Saving Now
If you do have the ambition to retire early then you will need to make sure that you can afford to do so. You will need an income and most pensions will not start until you reach pension age. This means that you will have to think about how you will fund the early retirement. It may be that you can find a pension that will pay out earlier or that you can use some other sort of investment. You will need to work out though, how much you will need to save in order to guarantee that there is enough money for you to be able to afford to retire.