Contemplating dropping to part time

[disneysteve]

EDIT: I fixed the numbers below. I knew they sounded high when I typed them. My math was off.


I know I've had two threads asking if my numbers are sufficient for me to retire, but I'm not quite ready to pull the trigger. However, I would like to at least cut back a bit.

I spoke to my lead physician today to ask about dropping down to part time and she said that would be no problem at all. I might have to wait the 120 days stipulated in my contract but it's always done on a case by case basis and right now she has several per diem providers who want a part time position and are just waiting for one to open up, so they might let me out of the contract earlier. All I need to do is make the formal request.

My thought is to drop from 36 hours to 24 hours. I currently work 12-12-8-4 each week. I'd ideally switch to 8-8-8. So 3 days instead of 4 and no more 12-hour shifts (this would be subject to that working in the overall schedule, or it could end up at 12-8-4).

This would allow me to keep health insurance just at a slightly higher premium. No need for ACA and no worries about managing MAGI for the subsidy. Assuming a 1/3 reduction in hours would roughly result in a 1/3 reduction in take home pay, I'd be bringing home enough to cover our routine spending plus about 15K to spare (corrected from original post) for saving and lumpy expenses. That assumes I continue to contribute 13% to my 401k. We'd have no need to touch our nest egg at all and would still be adding to it, just to a lesser degree than we do now. Even if I just did this for a year, it would bolster our position for when I ultimately stop work entirely.

Can anyone see any potential flaws in my thinking here?

 

[mystang52]

If you're contemplating part time, then it's pretty much a done deal that mentally you're already set to go; this would be a great transition to full time retirement. The improved quality of life during that transition would be a nice bonus. Presuming your employer gives the green light, go for it.

 

[ivinsfan]

Only that you have to continue working, will still be in the game and not completely out of the game. And if covid kicks in as it'a apparently doing right now, you could end working more then you planned.



In all honestly, the way Covid numbers are all over the place up down up down, I 'd hang it up, but that's me not you.

 

[38Chevy454]

I did similar when I was at the end of my working. Dropped down to 24 hrs/week (3 x 8) Tues-Thurs. Megacorp had a policy where if you worked >50% of full time you paid the same deductibles as if FT and received the same benefits. I also received 60% of vacation and holiday time, since I was 60% time. Fair deal for me and helped MC since even at 60% I was doing as much as several coworkers at 100% time. I did bump to 32 hrs/week for few months near the end to help with some shortage of personnel, I still had 4 x 8 Mon-Thurs schedule which was fine since the end was close. My boss was glad for the extra help in that extra day of working.


I also was already living on the approx 60% of salary and saving the extra 40%, so the drop in working and salary when I went part time was no real change to normal budget. I just didn't save the extra amount. So close to the same as when you have planned.


I do not see any reason to change your plan, as long as you can be approved for it by employer. It's great having the extra days off.

 

[disneysteve]

And if covid kicks in as it'a apparently doing right now, you could end working more then you planned.

My hours are fixed at whatever I've agreed to - 36 or 24 or whatever. Regardless of what happens with COVID, my hours wouldn't change. If I sign a new contract for 24 hours, I'd only be given 24 hours, not more or less.

 

[disneysteve]

I also was already living on the approx 60% of salary and saving the extra 40%, so the drop in working and salary when I went part time was no real change to normal budget. I just didn't save the extra amount. So close to the same as when you have planned.

That's exactly where we are. We save 40% of income.

 

[ivinsfan]

My hours are fixed at whatever I've agreed to - 36 or 24 or whatever. Regardless of what happens with COVID, my hours wouldn't change. If I sign a new contract for 24 hours, I'd only be given 24 hours, not more or less.

I understand but stuff happens in a crisis, that's a good protection to have built into your plan. Only you can if decide if there are staff sick and huge patient lines if you feel comfortable leaving when you hit the time to clock out. I've never known a doctor that "clocked out" no matter what.


I don't think most doctors are built that way. Which is why they get so burned out.

 

[disneysteve]

I understand but stuff happens in a crisis, that's a good protection to have built into your plan. Only you can if decide if there are staff sick and huge patient lines if you feel comfortable leaving when you hit the time to clock out.

Oh, I see what you mean. Well I can't walk out if my replacement isn't there yet. And sometimes I leave a little late because I'm in the middle of an encounter when my shift time arrives. But other than that, no, I don't voluntarily work extra hours.

 

[Sunset]

I think phasing into retirement is less of a shock to a person, it gives you 4 day weekends, lots of you time, and still have income.
Allows you to get used to not working.

I personally would want the hours consecutive days, to ensure the 4 day weekends, rather than: on, off, on, off, on, off, off.

 

[ivinsfan]

Oh, I see what you mean. Well I can't walk out if my replacement isn't there yet. And sometimes I leave a little late because I'm in the middle of an encounter when my shift time arrives. But other than that, no, I don't voluntarily work extra hours.

If only Covid cared about any of that stuff. Does the idea of never dealing with covid in a work environment appeal to you at all.

 

[disneysteve]

I think phasing into retirement is less of a shock to a person, it gives you 4 day weekends, lots of you time, and still have income.
Allows you to get used to not working.

I personally would want the hours consecutive days, to ensure the 4 day weekends, rather than: on, off, on, off, on, off, off.

It wouldn't work that way because we have a 7-day work week and I work every other weekend. If my weekdays on were Monday and Tuesday, my 14-day schedule would be Mon-Tues-Sat-Sun-Mon-Tue giving me 4 days in a row every other week. Of course that would also mean 5 consecutive days off every other week but I wouldn't want the 4 in a row. So I'd want to split it up. Maybe Mon-Wed-Sat-Sun-Mon-Wed. I'd get the 4-day weekend every other week.

 

[disneysteve]

Does the idea of never dealing with covid in a work environment appeal to you at all.

Of course it does. Last spring was awful. It's much better now but we're all concerned about what the fall will look like when flu hits. Among many other reasons, that's part of why I want to cut back.

 

[ivinsfan]

Of course it does. Last spring was awful. It's much better now but we're all concerned about what the fall will look like when flu hits. Among many other reasons, that's part of why I want to cut back.

Cut back or ER..ER gets you out of the Covid cycle part time keeps you in it. I admire anyone in patient care right now. If you continue part time I salute you because you won't really need the money

 

[citrine]

I work part time....25 hours of massage therapy a month. I was doing 50-60 hours a month, some of them 90min sessions. The reduced work gives me enough to pay half the bills and gives us some breathing room as well. We are debt free except for the house and pay at least $500-$700 extra a month. I can always take more appointments if needed and usually do during the winter since it is cold and people generally have more aches and pains.

 

[skyking1]

would those long weekends cause an increase in travel and discretionary spending?
I say this like it is a good thing, because it is
If you can see that happening, I would adjust your savings rate to reflect that.
How long would you think you would do this? One more year? Two?

 

[Koogie]

All I can say is I have been working part time since 2015 and I LOVE IT. The work/life balance is great.

I currently work about 2.5 days a week, about 45 weeks a year. Fortunately I'm still making an amount of money roughly equal to our yearly spending amount.

If you can, do it. It makes life a LOT more bearable.

 

[disneysteve]

I work part time....25 hours of massage therapy a month.



I can always take more appointments if needed

Same here. My job is such that when I'm part time, I can always pick up open shifts. We get emails pretty much daily from people looking for coverage and from our leads with a list of upcoming openings. I pick some up now and then already, but being part time I don't have as much availability to do so. If I'm only working 24 hrs instead of 36 it will be a lot easier for me to help out and make some extra money when I want to.

 

[disneysteve]

would those long weekends cause an increase in travel and discretionary spending?
I say this like it is a good thing, because it is
If you can see that happening, I would adjust your savings rate to reflect that.
How long would you think you would do this? One more year? Two?

Good questions.


We might do more short getaways, day trips, overnight trips. Ultimately the goal is to buy a place in Florida and be able to spend more time there.


I don't know how long I'll do the PT thing. It really depends how much I find cutting back reduces my stress level from work. If it helps a lot, I may stay on for a couple of years. If it doesn't help so much, I may decide to retire fully (or drop to just per diem) in a year.

 

[disneysteve]

All I can say is I have been working part time since 2015 and I LOVE IT. The work/life balance is great.

I currently work about 2.5 days a week, about 45 weeks a year. Fortunately I'm still making an amount of money roughly equal to our yearly spending amount.

If you can, do it. It makes life a LOT more bearable.

That's my hope. Glad to hear it has worked well for you. 24 hours/week would be three 8-hr shifts. That would have me bringing home a little more than we spend and still putting money into my 401k and not touching our nest egg yet.

 

[bikeFI]

That's my hope. Glad to hear it has worked well for you. 24 hours/week would be three 8-hr shifts. That would have me bringing home a little more than we spend and still putting money into my 401k and not touching our nest egg yet.

First time poster, long time lurker here

AND a very happy Part timer

I am FI too and began 2x 10 hour shifts recently- totally awesome! Have option to pick up extra days if needed.

Paid healthcare benefits, 1/2 vacation/sick time etc and contribute fully to 401k.

If you are already FI and not ready to RE, working PT is the best transition and offers a great work/life balance.

Highly recommend it

 

[LuckBeALady2016]

I’ve been a PA for 32 years. I work 6-8 hours a week (one day a week) and it’s pretty awesome. I worked Monday through Thursday for a few years, then Tuesday through Thursday for a couple of years, and now Thursdays only, because I can and because it meets the needs of my group.

The ideal ”life balance” for me is to work consecutive days.

 

[Blue531]

When I first got to my FI number, I wasn't mentally ready for the transition, so I decided a slow transition would help. It's very overwhelming to go from getting a paycheck from a job to getting your paycheck from yourself via your savings and investments.

I dropped from 40 hours to 32. Then, dropped to part-time of 20, having enough to pay most of the bills. After 2 years, I was totally ready. That was exactly what I needed to adjust.

 

[disneysteve]

I officially gave notice today to switch to part time! It can be up to 120 days before it goes into effect. But I’m now committed to the change.

 

[38Chevy454]

Good for you, enjoy the extra nonworking time.

 

[Koogie]

I officially gave notice today to switch to part time! It can be up to 120 days before it goes into effect. But I’m now committed to the change.

Congrats !!!!

It's a great step and a great change.

Cheers.