The 53% Retirement Trend at Cardinal Health

According to recent J.P. Morgan research, 53% of American households don't retire all at once.

In many of these cases, they partially retire—meaning some form of paid work continues, at least for a while, even after the transition to retirement has technically begun.

In my own practice, I see this trend play out constantly. Many of my clients choose to step down in responsibility in their current roles and/or take on brand-new roles as they retire from Cardinal. In fact, three of my current employees retired from Cardinal to work with us at Colburn Wealth Management.

The transition from full-time work at Cardinal to fully retired can be incredibly positive when there is a step-down in responsibility role in the middle. The forms that "partial retirement" can take vary widely, but a few common patterns emerge:

• Staying with the same employer at reduced hours or in a scaled-back role
• Consulting or freelancing in the same industry
• Serving as a board member for corporations or organizations
• Taking on a passion project or hobby that happens to generate income
• Working to support causes and non-profits that are important to them
• Working at a home improvement store, garden center, or similar retail environment
• Teaching or coaching in a field where you've built expertise
• Working seasonally, so most of the year is still fully retired

The financial benefits of a partial retirement can be significant. For one, continued earnings can mean less pressure on the portfolio during the early retirement years, when sequence-of-return risk is highest. Continued employer benefits (in some arrangements) can help bridge the gap to Medicare. And the option to work reduces the pressure to have every financial variable perfectly nailed down before making the transition.

But the non-financial benefits often matter more. Partial retirement can provide structure, social connection, purpose, and the ability to phase into full retirement rather than crossing a sudden line.

In my experience, where possible, this gradual approach may prove more satisfying than the all-at-once version they had originally pictured.

If you ever want to talk through your Cardinal benefits, retirement planning, or LTI decisions, you’re welcome to schedule a Q&A. No cost, no pressure, and no expectation to meet again — just a chance to talk things through.

If you ever want to talk through your Cardinal benefits or your own situation, you’re welcome to schedule a relaxed Q&A. No cost, no pressure, and no expectation to meet again — just a chance to talk things through. SCHEDULE A 30-MINUTE CARDINAL Q&A  

Take care and, as always, stay the course.