If you didn't have to work or could reduce your hours, would you?

[XutvJet]

I'm 47, married, and two kids (13 and 16). I currently bring in 90%+ of the income. My wife has her own business, but she had reduced her hours significantly from 2004 to early last year to be more of a stay at home mother, help at the school, etc. She's now working a lot more and getting more and more clients by the month which is great for her and us.

We've done quite well managing our finances throughout the years. Our modest house was paid off back in 2014, our cars are paid for, we carry no CC debt, our kids have about 3 to 4 years worth of college funds in 529s, and we have a substantial nest egg in a number of accounts.

I work in mergers and acquisitions helping clients understand and manage environmental risk. I've been doing this work since 1998. It's high pressure as you're completing a very detailed review within a narrow bid and close window. I deal with private equity clients, their attorneys, insurers, and lenders that need answers ASAP. For the last 10 years or so, I've been a senior consultant and routinely worked long hours (many times until 2am and on weekends). I'm in great health, but I feel that the job is quickly aging me. I have waivered on quitting and going somewhere else, but the grass wouldn't be greener doing the same work for someone else and I work for the best company in the business for environmental M&A consulting.

I have the option to reduce my hours to 32 hours/wk ("part time"). For part time status, my salary and PTO would be reduced by 20%. My bonus, 401K match, and health benefits would not change. It's an intriguing proposition and perhaps would help me manage the work stress, but after almost 24 years of fulltime work, it's a little unnerving to take a voluntary and substantial pay cut, but I need to consider health and happiness too. I look at our savings/investments and that my wife's business is increasing and could potentially offset the difference in a year or two and think "freaking do it". She plans to work as long as possible; 70s if she can. My goal has always been to fully retire at 53-55.

After toying around with the early retirement calculator below, it's been rather eye opening to see that I could cut my hours and/or retire early as planned (possibly earlier), especially after considering that my wife would continue to work, I'd draw SS at 62, she'd draw at 70 (assuming she's not working). Admittedly, it's scary to me to think that I might be drawing from savings in my early 50s when all I've done for the last 25 years is save and invest.

https://engaging-data.com/will-money-last-retire-early/


I know some folks love their jobs and want to work as long as possible like my wife. That's not me. My job is fine, but I could leave it in a heartbeat and have not a ounce of remorse. I do feel like I'm a bit of a slave to the money I make. I have plenty of things outside that can keep me busy.

For those that reduced their hours or retired early, what are your thoughts, opinions, ideas, etc.? Am I missing something obvious that says that I shouldn't reduce my hours and retire really early?

[erickonphoenix]

The finance business can be very stressful. I don't know what your exact retirement figure is but if you don't enjoy your job I'd suggest making a career change that maybe earns you less but is more satisfying. Or make managing your money your full time job so you're not on a clients leash. Of course all of those suggestions are easier thumbed out here than executed in real life. But one things for sure, don't slave over a job that you don't love.

[Alfisti]

I'd retire tomorrow. I don't hate work at all, quite enjoy it, but there's a billion other things I could be doing.

[dreamingat30fps]

If you have a paid off house and no debt why are you a slave to the money you make? You buy a lot of shit? Personally I would take the reduced hours and pay cut if I didn't like my job and retire as soon as possible. After all I could kick the bucket tomorrow.

[Gregrobin]

Interesting post. I used to love my work, now, not so much. I've been at my current company 2 years, pay is great, benefits are great, flexibility is great. I am older than you, just turned 55. My financial advisor tells me all the time I am in a good place financially. Like you I have no debt, except my mortgage, which I do not want to pay off given my low interest rate. I can make more in the market with that money.

I started looking for something else that was less stressful and more challenging/rewarding. I found it, but the pay was less. Less bonus, less 401K employer contribution (8% to 3%), my share of medical is a little more. Flexible PTO though. But, it feels like the grass is a little greener and I will like the work more.

It took me a few days to accept. In the end I feel like I am "selling my soul" to my current employer because of my pay, big bonus, higher 401K employer contribution, etc.

So, to answer your question...ABSOLUTELY.

Friend of mine retired at 40, made it big early. He went back to work part time at 43, he was, bored. All of his friends, who were also 40ish, were working and could not do things with him.

[tranquility]

Is it really reduced hours or will they still try to weasel in and get you to do OT for free? I think that would be my biggest concern, besides whether I will be financially-stable after this change.

I always believe the phrase "work to live, not live to work".

[damnitBobby]

Work to live not live to work.

I am no where near retirement age but have already reduced my hours from ~45-50 hrs per week to a steady 35 hrs per week. This is after grinding overtime almost every week for last 7 years. Reducing my hours was best decision ever. I have extra time to relax and spend time on myself and with my family.

Fortunately I had the energy and health to do it for the past few years but now I’m ready to take it easy.

[rwheels]

Do it now! Your quality of life goes up tremendously when you live more on your terms. What this means is that you can work, or not. Travel, or not, and not have to be constrained to a task that binds you for 40 hours, or so, each week. Besides, your health, and life are not guaranteed. If you are able to do it, go for it.

[VAcurler]

Go part time and work 40+ hours a week. Stay full time and work 60+ hours a week. If you drop to part time do it knowing that you will lose your benefits down the road (its just a matter of time) and eventually lose your job too (unless the entire workforce is going to 32 hours a week). Part time work is the first step out the door in most high pressure industries.

[XutvJet]

Originally Posted by tranquility

Is it really reduced hours or will they still try to weasel in and get you to do OT for free? I think that would be my biggest concern, besides whether I will be financially-stable after this change.

I always believe the phrase "work to live, not live to work".

Technically they can't, so I'm told by HR. I'm sure I'd end up working more than 32 hours/wk on occasion, but having a PT status would help make the argument to my superiors that I can't work "fulltime" hours (40-55 hours+).

What is amusing to me is that for many of our staff in Europe, 34 hours/wk is considered fulltime under their laws. They also get 6 weeks of vacation (we get no more than 4 weeks after 5 years to fulltime employment), they rarely work after 5pm, they never over the weekends, and are paid the same. Why us Americans kill ourselves with working so much is rather boggling.

[Bonk!]

Two schools of thought here for me. 1. Make hay while the sun shines. I'm guessing you're in the wheelhouse in terms of income? If so, a few more years of the grind might make a huge difference down the road. Kids are expensive and if you're contributing to higher ed, it would be good to have that banked. BUT... 2. No one ever went to the grave saying " I wish I had spent more time at the office". If the math says it will work and you're comfortable with your finances, then the life/work balance could get a whole lot better.

At age 50 I called it quits being a director in Big Law. Went to 80% basically doing salaried consulting. 6 years later (and it did take me a year or two to actually scale back) I am going to 60%, essentially working so we can stay off my wife's non-profit's health plan. I have 0 regrets. She loves her job and will be there for another decade. Me, a year or two more and I am done.

[Tommy-G]

I LOVE my job and my employer. However, my wife works a slightly longer day than I do and I think if she was home, or off early I wouldn't mind reducing my hours.
If she was still working a full day and I was off hours before her, I don't think I would do it

[tranquility]

Originally Posted by XutvJet

Technically they can't, so I'm told by HR. I'm sure I'd end up working more than 32 hours/wk on occasion, but having a PT status would help make the argument to my superiors that I can't work "fulltime" hours (40-55 hours+).

What is amusing to me is that for many of our staff in Europe, 34 hours/wk is considered fulltime under their laws. They also get 6 weeks of vacation (we get no more than 4 weeks after 5 years to fulltime employment), they rarely work after 5pm, they never over the weekends, and are paid the same. Why us Americans kill ourselves with working so much is rather boggling.

Ya, it's a totally different culture/mentality. Yankees are more gung-ho and gets things done but the flipside is there is less 'joie de vivre'.

GL on your decision, but it is curious you wrote that PT is 32 vs FT is 40...but that is not realistic, right? ...because for a mere -8 that would not be a good trade to go to PT.

[DETRoadster]

Originally Posted by VAcurler

Go part time and work 40+ hours a week. Stay full time and work 60+ hours a week. If you drop to part time do it knowing that you will lose your benefits down the road (its just a matter of time) and eventually lose your job too (unless the entire workforce is going to 32 hours a week). Part time work is the first step out the door in most high pressure industries.

Spot on assessment.

You're currently "full time" working till 2:00 AM and on weekends. So, what, 60 hours per week when you should be working 40. So you drop to "part time" and you either work way more than 32, but less than 60. Or, you dig in and say "I only work 32 because I'm part time" and you'll find every eager 20 and 30 something whose climbing up the ladder behind you more than happy to fill the void and make you replaceable.

I'm 46 and in a high-pressure high-stress job as well. It's aging me too. I cant do it much longer so I'm looking at options to scale back the stress by leaving. My recommendation is to take the part time, dig in and defend your 32 hours, recover mentally and physically, and then start planning your exit strategy before they show you the door. Plan to be out in no more than 6 months.

[Fly320s]

Originally Posted by Alfisti

I'd retire tomorrow. I don't hate work at all, quite enjoy it, but there's a billion other things I could be doing.

Same here.

Time is more important to me than money these days.

[shiftdnb]

Originally Posted by Alfisti

I'd retire tomorrow. I don't hate work at all, quite enjoy it, but there's a billion other things I could be doing.

This all day. When the pandemic killed live events I was unemployed. I took about a week off then I spent a couple months doing projects on my house that sat cause I was working so much. As the bigger projects died down I started relearning some things online and that lead to a job offer with hourly wages that is more lucrative than my previous salary working less hours which gives me time for other projects away from work which I enjoy doing which has taken away a lot of stress from life.

[XutvJet]

Originally Posted by DETRoadster

You're currently "full time" working till 2:00 AM and on weekends. So, what, 60 hours per week when you should be working 40. So you drop to "part time" and you either work way more than 32, but less than 60. Or, you dig in and say "I only work 32 because I'm part time" and you'll find every eager 20 and 30 something whose climbing up the ladder behind you more than happy to fill the void and make you replaceable.

I'm 46 and in a high-pressure high-stress job as well. It's aging me too. I cant do it much longer so I'm looking at options to scale back the stress by leaving. My recommendation is to take the part time, dig in and defend your 32 hours, recover mentally and physically, and then start planning your exit strategy before they show you the door. Plan to be out in no more than 6 months.

I would dig in and defend my 32 hours. There's no one below me that could take my place. I've trained/mentored everyone I currently manage and they're all too junior to do what I do. I did have a rockstar guy I trained and mentored for 5 years in hopes of him leaping frogging me as I have absolutely no desire to go to the next level. He ended up leaving last year for a different job as he had the same concerns as me.

I would like to think that I'm hard to replace and they'd think "he know too much to let him go", but I also recognize that I am expendable. With that said, we do have a fair amount of managers/sr. managers working regular PT (32 hours) and I'm not aware of any being let go.

I do also have the option of going "casual" part time which is 20 to 29 hours, but most benefits are reduced and/or not provided. That would probably be the next step.

[XutvJet]

Originally Posted by shiftdnb

This all day. When the pandemic killed live events I was unemployed. I took about a week off then I spent a couple months doing projects on my house that sat cause I was working so much. As the bigger projects died down I started relearning some things online and that lead to a job offer with hourly wages that is more lucrative than my previous salary working less hours which gives me time for other projects away from work which I enjoy doing which has taken away a lot of stress from life.

That would be my dream.

[M_Six]

I could have kept working for another 10 years, but it wouldn't have helped my retirement income much. It just made no financial sense for me to keep working where I was. And I didn't love the job. It was just a job. So I retired. Wifey is 10 years younger and will keep working for a while. My take-home pay in retirement is actually just a bit more than when I was working, so it doesn't change anything as far as our finances go.

I have to say, it's very odd to not have a job to go to every day. I've worked non-stop since I was 16 except for a few months when I was trying to finish up my undergrad degree. It feels weird to sit home every day and still have a decent income. Not that I'm complaining, mind you.

[Patrick303]

I have a target number in mind for savings and I plan to retire the moment I hit it. I hate the US mentality of grinding your whole life to be comfortable in your twilight years when you're too old, tired, and frail to do anything. I want to live on my own schedule when I can still complete that hike, ski that mountain, ride that motorcycle, etc.

Life is too short. And there's always that possibility of working your whole life to save up to "enjoy life later" and then having an accident or health problem that destroys it all.

[rwheels]

Originally Posted by XutvJet

Technically they can't, so I'm told by HR. I'm sure I'd end up working more than 32 hours/wk on occasion, but having a PT status would help make the argument to my superiors that I can't work "fulltime" hours (40-55 hours+).

What is amusing to me is that for many of our staff in Europe, 34 hours/wk is considered fulltime under their laws. They also get 6 weeks of vacation (we get no more than 4 weeks after 5 years to fulltime employment), they rarely work after 5pm, they never over the weekends, and are paid the same. Why us Americans kill ourselves with working so much is rather boggling.

I don't know about you, but I would be looking into a transfer to Europe.

[rebekahb]

Originally Posted by XutvJet

What is amusing to me is that for many of our staff in Europe, 34 hours/wk is considered fulltime under their laws. They also get 6 weeks of vacation (we get no more than 4 weeks after 5 years to fulltime employment), they rarely work after 5pm, they never over the weekends, and are paid the same. Why us Americans kill ourselves with working so much is rather boggling.

When we were in Belize we met a couple who had taken off a month of work in Europe to travel Central America. 2 weeks is pushing it and I have to get creative to make it that long. Sometimes, I eat in my car while driving down the road or working on my computer while I'm shoving food down my throat? Why?

I look at my husbands aunt and uncle. His uncle retires and his wife has so many health problems (bad knees, hips, and just had extensive neck surgery). Travel is hard on her. You work all this time looking forward to living life when we should be living life to the fullest while we're younger and can do these things. We've been to Japan twice and we move around a lot. I'm 40 and this last time I felt the walking & hiking more than 3 years prior. I hope I can still move well in my sixties but I want to do the fun strenuous travel stuff now because there is no guarantee I will be in the health to do it later.

My husband works a lot of hours like you and honestly it's sad. He has all these hobbies that he can never get to, tinker with and enjoy because he works so much. He keeps things because he has this idea in his head that one day he will be able to work on his hobbies. He also can't get shit done around the house because when he finally takes a break he wants to relax or hang with friends. My work is a lot more flexible. I look at him and have zero desire to ever work like that.

You've worked hard to set yourself up financially so live a little and enjoy the fruits of your labor.