A Financial Definition of “Semiretirement”:

The Difference Between Saving and Spending Down

This came to me after dinner with girlfriends: one a realtor and one a mortgage broker. They are both adept at using their time flexibly. I am learning not to feel guilty for walking away from my desk in the middle of the day. It’s a long time coming.

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Recently, I asked ChatGPT the following question: “In literature, what does semiretired mean?”

Its answer:

In literature, when a character is described as semiretired, it usually carries both a literal and a figurative weight:

Literal sense: The character has stepped back from full-time work but hasn’t completely given it up. They may take on occasional projects, consult, or dabble in their old profession. For example, a semiretired detective might no longer be on the force but still takes cases now and then.

Figurative or thematic sense: Authors often use “semiretired” to suggest a state of in-betweenness — not fully active, not fully withdrawn. It can imply:

• a reluctance to let go of one’s identity or vocation,

• lingering relevance or unfinished business, or

• a softer landing into old age, rather than a sharp cutoff.

In some works, “semiretired” might even signal restlessness — the character is supposed to be slowing down, but the story pulls them back into action.

Would you like me to share a few examples of how “semiretired” characters are used in novels (like detectives, doctors, or professors who can’t quite leave their world behind)?

No thanks, ChatGPT. You’ve been a great help.

Someone asked me why I don’t refer to myself as “semiretired.” I didn’t have a good answer. What I do know is that my schedule includes a lot more me time, and I no longer save for retirement. I’ve also discovered the limits for how much I can grow Madrina Molly “quickly.” (We’re currently 160 members strong … yippee!) And I don’t feel the need to strive the way I did when I was 30 years old.

I guess that makes me semiretired.

Look, I’ve achieved my financial freedom (certainly a common retirement goal). On the other hand, I feel that my work isn’t done. I know I can make a difference for a lot of women out there. But the ones I really care about are those who have done all the right things but still don’t have the strength of their convictions about money. (You know who you are.)

I delight in answering your questions, helping you navigate conversations with your financial advisors, and helping you engage in impact investing. I also delight in making referrals to the kinds of woman financial advisors I would want to work with me.

In 2026, I’ll be holding webinars to build membership, and why not? After all, I am semiretired.

I’ll also offer fee-only planning for those who want my full attention for a year … because I’ll be semiretired.

I’ll engage with the women’s venture investment community as both a limited partner and an advocate for using self-directed Roth IRAs to infuse capital into these women-centric or women-led funds … because I’ll be semiretired.

Oh, and I’ll be going to Pilates, swimming, lifting, and walking in the middle of the day … because, well, you know.

What all of this does for me, besides making me happy, is keep me from spending down my assets. By doing my own thing for a few more years, I am not distributing my nest egg. And my nest egg keeps growing, even as I line up my income assets to supplement my Madrina Molly income.

The point I want to make is that the act of retiring is not a switch one turns on. It’s a process and a series of decisions. If you are underfunded for retirement, you can weigh the benefits of saving more, spending less in retirement, or letting your assets grow longer before you tap them. All of that is easy to model.

For many people, the benefits of staying busy for a few extra years outweigh the benefits of saving more. That’s not just because it helps their wealth continue to compound and grow. It’s because, as Chat GPT says, there’s more than a few of us who aren’t quite ready to leave our world behind.

A recent Think Advisor article discussed no longer saving for retirement for some well-funded people. I did a quick calculation, just for grins, to create an example:

If you save $20K per year from age 60 to 64 and it compounds at 7.2%, you will have an extra $124K (give or take) in your portfolio at age 65 when you begin distributions. If you have a $1MM portfolio at age 65 and you let it compound at 7.2% for two more years, you will have an additional $149K in your portfolio. This is because four years of compound growth of smaller amounts cannot compare with the two extra years of compound growth of the greater amount.

Now, none of this compounding is linear or guaranteed. But could you benefit from spending that extra $20K per year to launch your kids, invest in your health, and take some hiking trips five years before your hips wear out and need replacement?

Would it be worth it for you to earn just enough money for two years (you’ll be eligible for Medicare) to avoid spending down your assets? Should you take some time and assets to reward yourself between launching children and caring for parents? I think the answer might be “yes.”

Let’s normalize thinking about retiring as something apart from distributing our assets. Let’s normalize thinking about retiring as something apart from collecting Social Security benefits. Let’s think about reaching a specific age as something apart from being too old to start or continue something.

There are no established rules for a generation that will likely live into our 90s, with many of us reaching 100. There certainly aren’t rules for when we should leave the workforce or when we’re too old to start something new. And there are no rules for where we must live or whether we live with our children, our parents, or our grandparents.

But the magic of compounding and keeping your assets in the market longer provides rewards that are equivalent to continued savings or better. Your last few years of contributions to savings will not have as great an impact as your first few years, unless you save an awful lot. You might be better off using some of your money to enjoy yourself and delaying your nest egg’s distribution.

Let’s normalize being flexible. By the way, I plan to remain semiretired for another decade. I’ll let you know how it goes.

Reading:

https://www.thinkadvisor.com/2025/09/19/is-it-ever-the-right-time-to-stop-saving-for-retirement/

How might you “semiretire”?

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The information contained herein and shared by Madrina Molly™ constitutes financial education and not investment or financial advice.

Sherry Finkel Murphy, CFP®, RICP®, ChFC®, is the Founder and CEO of Madrina Molly, LLC.