The Trade-Offs Of Going Part Time

If you’re a new reader and not familiar with my backstory, in a nutshell I became financially independent in my mid-40’s and went down to 20 hours a week at my W2 job.  I now spend the newly freed 20 hours a week living a more fulfilled life doing the things I want, whether they pay money or not.

I’ve done a few updates about my job after going part time.  But now that I’m more than 2.5 years into this experiment I’ve had the time and space to form some more informed positions about going part time.  Going part time has mostly been a very positive experience, but like anything in life it has trade-offs.  

Keep in mind that my job situation is one of a white collar professional in a typical office setting.  Some of the trade-offs I discuss in this post might not apply to all jobs, especially more blue collar jobs.

 

Lower Salary

 

The Trade-Offs Of Going Part Time

The beautiful mountains of the Russia-Georgia border *the pics in this post will have nothing to do with the post 🙂

This is kind of a “duh..” thing, but needs to be stated anyway.  I work 20 hours a week, and thus I collect half of my salary.  Being that I’m already well past my FI number according to the 4% guideline I didn’t have to do any calculations to check if it was possible.  I can fully stop working and should be fine, for the rest of my life.  

But once you get used to a bi-weekly paycheck of a certain amount, those first part time paychecks do come as a bit of a shocker.  I remember thinking, “oh yeah, this is what is what like when I used to earn this much for full-time work”

Bottom line, having your paycheck cut in half does take some getting used to from a mental perspective.  It’s kind of like traveling back in time to when you were in the earlier stages of your career.

 

Some Reduced Benefits

This is one that will be very specific to a particular company or job.  I work for the Federal Government and going down to half time for the most part is very simple when it comes to my benefits.  Many are simply cut in half, fair enough.  I get half of the sick leave and vacation leave that I used to. 

One of the bigger reduced benefits is my healthcare.  I get to keep my healthcare plan which is one of the reasons I stay part time, but I have to pay more for it. 

It may come as a shock to most who think we Feds have the best benefits in the world, but we don’t.  For full time Federal employees the government covers 72% of the cost of the healthcare plan, and the employee pays the remaining 28%.  Most of my friends in the private sector do not pay a dime for the cost of their plan, while we Feds pay thousands out of pocket per year just to have the plan. 

Now that I’m part time it’s even worse for me.  Since I’m half-time I have to pay for half of the governments share, meaning another 36%.  So in the end I’m now paying 64% of the cost of my plan, while Uncle Sam is picking up the remaining 46%.  To me it’s still way better than being stuck with a high-deductible plan on the ACA, with the uncertainty of it’s existence going forward.

On the good side I still get my full life insurance benefit which is twice my salary (my official salary is still my full salary).  Other benefits like long-term disability haven’t changed for me. 

 

Less Social Interaction

The Trade-Offs Of Going Part Time

An awesome waterfall seen while hiking in Australia

*I wrote this post before the pandemic, so this section is now even more pertinent…

I’ve been at my agency for over 24 years and I have quite a few good friends there.  I’m a tad introverted on the Myers-Briggs scale so I’m not the biggest social butterfly at work, but I do enjoy these friendships. 

Since reducing my hours to 20 a week I obviously see these people way less and have become more distanced from most of them.  One person in particular is a closer friend than the others and we’ve purposely made the effort to connect outside of work more often to compensate.  I did some running races with him last year and hope to do them again this year. 

But overall most of my longtime work friendships have weakened.  With intention and effort this can be mitigated, but as an introvert it’s not my top priority.

 

Being Marginalized

Prior to going part time I was a senior level manager with over 70 employees under me and a large budget.  I sometimes made big and important decisions that helped guide the future technology of my agency.  I had influence. 

When I spoke at meetings and gave my opinion, people listened.  I moved up very rapidly in my career, and some referred to me as a “golden child”.

I gave most of that up when I went part time.  But as important as my old position sounds, in reality I spent most of my time doing useless bureaucratic tasks that shouldn’t exist. 

So it’s easy to harp on the loss of influence and lament my new marginalized status, but I constantly remind myself to remember the bad times too and the useless crap that came along with my old position. 

 

Less External Validation

The Trade-Offs Of Going Part Time

Scuba diving up close and personal with sea lions in the Galapagos

These days most of my fellow influencers at work see me as less serious about my career and frankly not as important.  I’m okay with that.  I won many awards in my career, but none since I went part time.  I’m okay with that too. 

But I’d caution you dear reader to give this consideration in your own situation before you decide to go part time

This is a big deal for many, and you have to do some serious mental reflection to decide if you will indeed be okay with this.  Many of us want to believe we don’t care what others think about us but in the end we do, and far more than we’d like to admit. 

If you’re the kind of person who needs to collect gold stars at work and demands external validation, going part time might not be for you.  It depends on your career field and company, but I cannot emphasize the importance of this too much.  Do the self-reflection before you pull the trigger. 

Professional prestige is a precious thing to many, and losing it could be more impactful than you imagine.  I’m very proud of the work I’ve done in my career, but I’ve (mostly) come to terms with letting it go.

 

I’m Less Sharp

I did a whole post on this so I won’t rehash it all here.  My technical acumen related to work and public speaking skills have atrophied since I went part time.  This is something that can be mitigated, if desired.

 

Perspective

The Trade-Offs Of Going Part Time

The amazing peaks of Kyrgyzstan

Even with these trade-offs I still love being part time.  It’s a great way to stay engaged in my industry and keep many of my benefits, but with less stress and more free time

It’s allowed me to have a taste of what being fully retired is like.  I’m home three weekdays every week, and unless you’ve done that you might not really know the feeling of going to the grocery store at 10 o’clock on a Tuesday.  The world just operates differently at those times, and I get to sample that. 

Yes, it’s as awesome as you’re probably imagining it to be. 

My part-time schedule hasn’t solved all of my problems in life and I still sometimes get stressed out like anyone else.  When this happens I try to re-frame the situation.  I try to remind myself that I have it good, that I’m reaping the rewards of the hard work I’ve done in life, and the good decisions I’ve made. 

So instead of getting pissed while sitting in traffic on the way back from mountain biking (which is pretty much every time), I try to say “Dude, it’s noon on a Thursday, and you might be stuck in traffic but you just went mountain biking on a Thursday morning while everyone else is at work.  You get to be stuck in traffic at noon on a Thursday, with your bike in the back of your car”

Like anything in life it’s all about perspective and how you want to see things.

Your turn – have you considered going part time as a way to ease into retirement?

 

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Dave @ Accidental FIRE

I reached financial independence and semi-retired in my mid-40's through hard work, smart living, and investing. This blog chronicles my journey and explores many aspects of personal finance including the psychological and behavioral factors that drive our habits.

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31 Responses

  1. Excellent, really covered a lot of my thoughts. I’m in a position where I am FI but still holding on to a full time job at a very high position. I don’t want to ever stop working but I definitely am considering going down to part time. I think the biggest concern I have is that I want a part time which is still challenging but one the other hand less stressful than what I’m currently doing. Sounds good but where in the world do you find such a part time 🙂 I guess I’ll have to put in some more thought into this.

    • Dave @ Accidental FIRE says:

      Good question, I think “theoretically” any substantial reduction in hours should reduce stress. But I’m sure there’s exceptions. Good luck with finding that position!

  2. J says:

    Great post.

    I think the idea of not being taken seriously by your work colleagues is an interesting one. I’d like to think I wouldn’t care, I’m sure I wouldn’t if I was already at FI. It ties in with your point on perspective nicely and why you are doing it all.
    Thank!
    J

    • Dave @ Accidental FIRE says:

      Great comment… being FI makes me care less about it for sure, but there’s still a small part of me that cares. Things like this help to expose yourself to yourself.

  3. i swear my work the past 2-3 years feels like part time even though i put in a full 40. it’s gotta be due to the contrast of all those years of overtime and swing shifts and just now showing up more like an average human. those high deductible plans aren’t too terrible when you are fairly healthy. shingles cost me about 120 bucks and kidney stones about 250-300 just because of the BS negotiated lower rates through fake insurance. seems like you have a pretty good thing going on there and i hope you can keep it going as long as you are willing.

    • Dave @ Accidental FIRE says:

      when full time feels like part time that’s a great place to be. As for the health plans, events that are not allowed to be discussed on this blog in November will help me gauge possible moves going forward

  4. Vanessa Handsworth says:

    I planned to retire in my mid forties and I did it for a couple of years – really enjoyed it and was very happy. But then I buckled under societal pressure to get a job, so got a part time office job (3 days a week). Although the trickle of extra money is welcome (minimum wage), I’m seriously thinking of leaving – no motivation to work for a boss, giving up precious time to be employed, office politics etc… I guess a lot of it is do with once you reach FI, there is much less tolerance to deal with all the crap that goes with being employed. It made me realise life is short so there is no point wasting it!

    • Dave @ Accidental FIRE says:

      Societal pressure is never good 🙂 I hear you though, every job is different and for me the 20 hours a week is tolerable and worth it. But that could change at any time, or from any stupid decision from senior leaders at my agency. Right now with the pandemic they’re being very flexible which is great.

  5. You touch upon some great points Dave.

    The reduced social interaction might be the biggest issue in these current times. The pandemic has changed things with more people working remotely. No longer is it easy to get together for coffee or grab a lunch with a colleague.

    After retiring, one quickly realizes “work friends” are exactly that. The one common bond was work. Those friendships tend to dwindle away unless you make extra efforts to keep in touch.

    • Dave @ Accidental FIRE says:

      Interesting point from someone who is fully retired. Are work friends just that – friends only because of work? For me I suspect most of them are, but there’s one or two that I’ll hopefully stay friends with even after I fully peace-out.

  6. Interesting post. I found a similar experiment in being reduced to 32 hours per week for a while (it ended after my employer got PPP money, but I didn’t know it would at the time). Since I live on half my income, it just meant I was investing a little less, and not that much since because of the shutdown I was spending even less than usual. It was an interesting view into what part time work would be like. I worked relatively normal hours Mon-Wed and split the remainder (theoretically 8 but often it was more or less depending on my demands earlier in the week) between Thursday and Friday. Having the extra time was amazing, and it felt like the perfect balance. I think I was more productive when I worked because I knew my time was limited.

    Now that I’m back to 40, I miss it, though I’m happy to take advantage of the extra money while the market is down. It did make me think about SlowFI for a hot second, but I really want to get to FI because employment is always uncertain and I would rather have the knowledge I could walk away if I needed to. I could survive on half my salary but would be out cold if the job ended, until I found a new one. I could see myself doing something like you did when I get close though.

    Good point about external validation. I get that myself through projects outside my job, so I will always have that no matter what. I can see myself missing some of the status my job brings – when people find out I’m the guy writing the news they read every week (our paper is very beloved in our community) they tend to hold me in higher regard (probably higher than I deserve haha). I could see myself missing that.

    • Dave @ Accidental FIRE says:

      That’s a tough choice that you brought up – use “SlowFI” on the path to FI or stay full time to get to FI faster. I did the latter, but it was accidental as I was not deliberately pursuing FI at the time. The dynamics will be different for every person. And sounds like your paper writing gig is a great thing and brings value. Those projects are so nice to have!

  7. Going part-time is a great choice. It’s the best of both worlds. Of course, being FI really helps. When money isn’t the first priority, you can make different choices.
    Thanks for sharing.

    • Dave @ Accidental FIRE says:

      “When money isn’t the first priority, you can make different choices.” That could be the whole post 🙂

  8. Mr. Fate says:

    Nice one, Dave. The timing was interesting in that next week I’m doing a follow up to my “Things I No Longer Do Thanks to FI” article and was thinking about what are some things I actually do miss. You’ve captured many of them here, but the thing I miss most is being constantly surrounded by exceedingly bright, highly motivated, and passionate professionals.

    That said, these are legit downsides that people really ought to consider in advance. That said, I wouldn’t trade my financial freedom for anything!

    • Dave @ Accidental FIRE says:

      Good point about being around smart people. I did another post a while back about missing being on some strong teams that actually accomplished things. Those were the good times of course, and I have to remember to balance out the memories.

  9. Ed says:

    This is a really interesting post. I expect I’ll transition our of my role at some point and work on a part-time basis. I’d considered some, but not all of these. In particular, the loss of influence based on being a part timer and no longer the “golden child” will have an impact, and I could find it irritating if I’m not prepared. I really appreciate the balanced perspective and the ultimate benefits of the part time shift.

    • Dave @ Accidental FIRE says:

      Yes, definitely do your mental preparation. I kinda just dove in. Thanks for the comment

  10. Kevin Drevik says:

    Sorry to burst your bubble, but the majority of folks in the private sector pay a significant chunk of money for their healthcare. Like you, I’m an office worker (engineer) and I pay roughly 35% for my healthcare. if I was an hourly worker in one of our warehouses, it might cost as much as 40%+!

    • Dave @ Accidental FIRE says:

      Interesting, I’m probably a victim of sample bias since I live in the DC region which is the best job market in the country as well as the highest median incomes. Around here most white collar workers in the private sector get free healthcare from their employer. Makes sense that it’s not necessarily the same elsewhere.

      Thanks for the comment!

  11. Pete says:

    When I read “My part-time schedule hasn’t solved all of my problems in life…” I immediately thought about that call of the mountains for you. If you can somehow work remotely from wherever with a good internet connection that would be sweet.

    • Dave @ Accidental FIRE says:

      Haha, you know me and my blog 🙂 Yes, believe me that’s on my mind. And now with this pandemic my agency is talking a big game about allowing more flexibility. We’ll see how that plays out. I’m tracking it closely

  12. Mama Minou says:

    I would love to go part time when I reach my number, since I really enjoy parts of my job and think I would enjoy it even more in moderation! It would also be a solution to the insurance issue. However, I work for a local government and while it is theoretically possible, it Is practically unheard of to do this.

    • Dave @ Accidental FIRE says:

      Well, you never know until you ask right? Maybe you could frame it within the current crisis, that they need to start allowing more flexibility in schedules. To me flexibility doesn’t just mean the ability to work from home, it should include part time options as well.

  13. The toughest part of leaving work was not being someone anymore or being the guy that got things done. I was often the go to for answers of someone who had the experience to know how to solve problems. I didn’t really transition to part time but rather remote work and then all in to FIRE so I don’t have the unique office dynamic perspective that goes with it that you are experiencing. That being said none of it matters when you are on your bike or sitting on the side of a mountain.

  14. DenverOutdoorsGal says:

    You always are on point. WFH since mid-March is like having a taste of part-time work or early retirement life. I love it. I find simple pleasures in grocery shopping at 1pm weekdays, near empty hiking trails at 2pm, no commuting, less customer interactions for ambiverts/introvert, and more me time. On the business/technical side, I’m actually sharper since I have more time to deeply dive into various subjects and tools to further add value. However, I think this may be short lived due to diminishing professional interests if I ever go to “real” part-time work and just not WFH for 2 months. With all the free time I have, I may not give a s*&! if you know what I mean.

    • Dave @ Accidental FIRE says:

      You’re telling me.. I think I’m getting more of a taste of full retirement by not having to physically go in. I like it, no – love it. As much as I love cycling I don’t even miss my bike commute, mainly because it’s the same route everyday and kind of dangerous. I need variety in my riding. My “don’t give a s**t” meter has been going up too 🙂

      THANK YOU for the compliment and for your readership!

  15. FITrailHiker says:

    Great insight! I am also planning to be semi FIRED once pay off mortgage and cover expense from dividends. Hopefully can run small consulting gig on part time basis.

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