Another Retirement Formula

After you are comfortable that you have enough money saved to retire, the decision as to when to actually pull the trigger really boils down to a simple formula:

            When (value of remuneration from job) > (value of your time) = Work

            When (value of your time) > (value of remuneration from job) = Retire

Notice I do not not use the word money.

People work for a variety of reasons, more reasons than just the money.  However, since most people actually need money to live on, that reason can obscure those other reasons.  I do know a few people that have enough money to retire but don’t want to.  Because they receive other rewards that they find more valuable than the extra time that they would receive if they retired.

For some people those rewards might be challenge, or appreciation, or structure.  For others it might be the feeling of contributing, of being part of a team, or social reasons.  And for many it’s identity.  You are giving up all those things when you retire, and if you are not yearning for the time, you will most certainly miss those things, and probably the money too. 

Which is why my part-time consulting gig has been so great for me, because I got a chance to have all those rewards and still have so much time available to me, just for myself.  I knew when I started this gig, I even said so in my interview, that at some point the job would grow and they would need to get a full-time person.  I also told them that I would not be tht person.  Because despite the value of the many rewards I receive, I’m not willing to give up more time to get more of the rewards.

My part-time gig is about to cross that line for me, where it would require more time, time that I find too valuable to trade for the various forms of remuneration.  I love the appreciation, the feeling of contributing, and yes, the extra money.  But I’m not willing to give up any more of my time—it’s too valuable.  More valuable than those other things are to me.

So I’m going to be passing the reins to my full-time replacement once we figure out whom that will be.  I broke the news a few weeks ago.   It was hard and sad, and since I had been stressing about that conversation for months now, a bit of a relief.  I have loved being part of that team, and I will miss it.  But I have learned that I am open to this kind of thing again in the future.  For now though, I’m just appreciating the value of the wealth of time that will come with the return to full-time retirement.

Related Posts:

    What do You Want to Be When You Grow Up?

    Filling in the Blank in Retirement

    Is Being Content Preventing You From Being Happy in Retirement?

 

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Comments

[New at this]

This was shared from a very well known "motivational Speaker" who was supposed to be "motivating" a group of the top execs at the fortune 100 co where I currently work. The idea he was pushing was to live a balanced life, etc. But I can tell you all it did for me was pour gasoline on my burning desire to retire on Dec 15, 2012, before this place kills me. He also shared similar statistics for IBM and AT&T.

[Retired Syd]

@New: That's funny--it would have had the same effect on me. Motivational yes, but not probably what he had in mind!

[Bill Birnbaum]

Hi, Syd... From time to time, I do a bit of part-time consulting to feed my need for an intellectual challenge. Then, when my consulting assignment is over, I enjoy the added freedom in returning to full-time retirement. I guess that "the grass is greener." Bill

[New at this]

So maybe Time isn't an independent variable in your formula for this post.....

[Retired Syd]

@Bill: I read one of those studies awhile back that said that a significant number of Boomer retirees expected to "cycle" between periods of work and leisure for their retirements. I can see the appeal of that now.

[John Laser]

Thanks for this post! I think sometimes it can be difficult for some people to embrace retirement. Especially when it comes close to the time of leaving work.