Traditionally, for many of the working class population, retirement meant permanent break from work. But, with changing times, people are now preferring to semi-retire, which means working few hours or taking up a different job before retirement.
A global survey titled, ‘The Future of Retirement Choices for later life’ conducted by HSBC reveals that around 54% of working Indians are planning to semi-retire in future. The survey covered 16,000 respondents (1,000 Indians) across 15 countries.
Appetite for semi-retirement is particularly high in Asian countries. Over three-quarters of working age people in Indonesia (77%) plan to semi-retire, as do almost two thirds in Malaysia (64%) Singapore (62%) and Taiwan (62%), finds the survey. In India, 23% of Indians semi-retired.
Preferred means to semi-retire
Globally, more than half (54%) of working age people who plan to semi-retire want to do so by staying in the same job or career but working fewer hours, yet just under half (45%) of retirees who semi-retired actually did this.
36% of working population feel they need a different job and reduced working hours against 44% of retired people.
Working preference
Choice or necessity
The survey shows that many retirees choose semi-retirement to stay active.
More than a third (34%) did so to keep active or keep their brain alert, three in 10 (29%) because they liked working and 26% because they did not want to fully retire immediately, shows the report.
22% retirees want to reduce stress and thus opt for semi-retirement. However, one in six (17%) retirees say health reasons or physical demands prompted them to opt for semi-retirement.
But for others, the reasons are financially driven. 10% to 11% of respondents could not afford to immediately retire full time. A similar proportion (10%) chose semi-retirement to bridge a shortfall in retirement income or because they were no longer able to find full time employment (9%).
Rajesh Hattangady of Thiink says, “People are now preferring semi-retirement options because they want to keep themselves active post-retirement. Also, many people find that their retirement savings are not sufficient and thus they prefer to continue work post retirement.”
