Occasionally a retirement based article comes out on the old inter-web that catches my eye. Especially when it covers things in an interesting or informative way that I just like for whatever reason. This article spells things out so you can ask yourself. What is Your Kind of Retirement?

If anything else on this Leisure Freak site I challenge the traditional definition of retirement.  The one of calling it quits once reaching old age. Then just sit on your duff, hit the links, or fly fishing 365 days a year as the one and only exclusive definition of retirement.  Certainly that traditional definition doesn’t sound all that bad. I will probably do just that when I grow older.

But my thing is why wait until you are of advanced age to retire in the first place? Get off your dumb-spending carousel and start saving for an earlier departure from servitude. Get out of the rat race and live your retirement freedom courtesy of financial independence.

The article neatly broke down retirement to be of four different flavors and asks which is right for you.

• Early
• Mini-Retirement
• Financial Independence
• Part-Time work

I will get to summarizing how each was defined. But I have to say that I think all of them fit in nicely as options available within my retire early and often lifestyle through financial independence. My lifestyle doesn’t see them exclusive of each other as separate retirement flavors. I see retirement as freely jumping between the four kinds of retirement outlined in the article throughout retirement.  That said, here is a summary of the four kinds of retirement.

Early

This was defined as saving enough through a high income or savings savvy to retire before age 65. Retire to what was described as the traditional definition of retirement.

“Early retirement usually means you follow the model of an uninterrupted period of work followed by permanent retirement, but you stop working in your 30s, 40s or 50s instead of in your 60s”.

Leisure Freak thought– That’s one way to retire early. I haven’t met an early retiree yet that just “retires” to the old traditional definition of retirement. That doesn’t mean there aren’t any. But I think it is more plausible that all the ambition, drive, curiosity, and energy that gets someone to early retirement isn’t going away. That is where I say all the retirement flavors listed in the article are available options. It is certainly true for me and the others I know.

Mini-Retirements

This was defined as working and then retiring many times.  It goes on to say that you mix periods of intense work followed by periods of complete rest.

“You might work hard and save a substantial amount, travel for a year or two, then return to the work force. This allows you to experience retirement-like activities at a younger age. However, it also often means you likely must work well beyond typical retirement age”.

Leisure Freak thought– Certainly this could be an option for someone who is unable to reach full financial independence. But has a lot of living to do. I do believe that this kind of retirement is also just another option for those who do reach financial independence. Having the freedom to pursue work they are interested in doing or passionate about doing. Not HAVE to do.

I purposely strive to have mini-retirements or living what I call a Retire Early and Often passion-driven lifestyle. You can work for as long as you WANT to do it. Then retire again. If following this “Mini Retirement” as an exclusive kind of retirement. Then I suggest save more than you need for your next retirement intervals in a separate long-term fund. Then you won’t HAVE to work past traditional retirement age unless you want to.

Financial Independence

The article compares this to the traditional definition of retirement. Retire from working at age 65 on your savings, pensions, and Social security and never have to work a day again.

“you don’t need help from your children, you are free from major debt and can probably enjoy a sort of “permanent vacation” lifestyle. But financial independence can also mean you are free not just for a permanent vacation, but to pursue a passion unencumbered with having to make money from it”.

Leisure Freak thought– It does state you are able to pursue passions without HAVING to make money and I totally agree with this except for one thing. Why limit the definition of this kind of retirement to reaching age 65? This was listed as the third kind of retirement in the article but I believe it should be number one. That is because no matter your age Financial Independence allows you to choose any and all the other kinds of retirement that are being defined in the article. You may not start your Social Security for years after retiring early through financial independence but it is still part of your long-term financial plan. In the meantime live life on your terms.

Part-Time Work

Also known as Semi-Retirement, retiring from full-time work to part-time or consulting work. It’s defined as for those who would miss working after they retired.

“means you don’t necessarily save as much money before you leave your full-time job. It’s appealing for people who really enjoy what they do but want more of a work-life balance”.

Leisure Freak thought– That’s one way to retire to less stress and more flexibility in your lifestyle. It would certainly help someone who hasn’t saved enough to fully fund their retirement. I’m not sure about the missing work part, especially meaningless work, however I do see it as just another retirement option for those who have chosen financial independence hopefully while they are still young enough to enjoy it. Working part-time at something of interest or passion is an attractive option where you can even retire from this kind of retirement when you want to.

My Freak Conclusion

If you would like to read the article I am referring to it is What Kind of Retirement Is Right for You? By AJ Smith at credit.com.

I liked the article for pointing out all the options available for those who retire early or at all even though they are pitched as separate kinds of retirement. Although I don’t agree with all the limitations it places within the definitions it does touch on all the things I think are wonderful about financial independence and supports my belief that there isn’t just one way to retire. Retiring costs money so live well within your means, pay off all debt, and ramp up savings and you will have options to choose or jump around all of these retirement flavors.

What is Your Kind of Retirement?