Not ready to retire yet? This could be the strategy for you

What if retirement wasn’t a line you crossed, but a lifestyle you eased into – deliberately and on your own terms?

For decades, retirement has been treated like a finish line. A date we count down to. One day you’re working, the next, you’re not. But as we live longer, work more flexibly and expect more from life, that abrupt model is starting to feel outdated.

Not ready to fully give up work? Try taking retirement for a test drive.Credit: Simon Letch

In its place is a more thoughtful approach I call dipping your toe into retirement. It’s about gradually stepping into life after full-time work – giving yourself time to figure things out rather than making all the decisions at once.

Retirement is better seen as a continuum: a slow shift involving financial preparation, emotional readiness and a reworking of your lifestyle to suit what’s next.

Some of the most fulfilled retirees I’ve met didn’t retire in the traditional sense. They began easing in five or 10 years before they fully stepped away from work, gradually shaping a life they genuinely wanted to live.

Often, that meant reducing their hours, trialling new routines, taking career breaks or volunteering. They rebalanced their priorities and made small changes to explore what brought them joy and meaning, while also planning how to fund it.

Start small

A simple way to dip your toe in is to shift to a four-day week. That one extra day creates space – for health, family, hobbies, or simply catching up on life. It gives you the chance to try a different rhythm while still enjoying the structure and financial benefits of work.

One Prime Time podcast listener described it as “a way to practise living life better, before I have to do it every day”. That mindset is powerful. It lets you experiment, reflect and adjust, long before you retire for real.

Then, when that day becomes purposefully used, and you’ve built up some financial confidence in what you can afford, you might step down another day to three days a week. Each step, taken carefully, can allow you more time to be sure about your approach to your future retirement.

How to fund the shift

You don’t need to stop working completely to access your super. If you’re over 60, a Transition to Retirement income stream may allow you to draw a modest income while continuing to work part-time. Your super stays invested and working for you, and if you’re still contributing, you could even reduce your overall tax bill.

As Kat McPhee from Aware Super says on the podcast, this strategy can help you scale back your hours while maintaining your income – offering flexibility without the financial shock.

It’s a smart option many Australians still don’t realise is available. But for those looking to step back gradually without stepping out entirely, it can be a game-changer.

Alternatively, you might choose to move your super into the full retirement phase and return to work in a more suitable or flexible role, one that better fits this next stage of life. If you’re over 60 and have left a role classified as gainful employment, this is entirely possible.

The key point? Retirement no longer has to be declared once and for all. You can choose between a transition to retirement or leaving one role, shifting your super into the retirement phase, and then returning to work in a different role.

And you can do it on your own terms, with more flexibility, more control, and more options to live the way you want.

Plan for the “part-timing” years

There’s a growing middle ground between working full-time and full retirement: the part-timing phase. These are the years when you gradually shift your focus from work to what’s next.

Nearly 80 per cent of Australians say they’d prefer to ease into retirement rather than stop suddenly. But not every workplace is set up for that. If you’re over 55, you have the right to request flexible work under the Fair Work Act. Employers don’t have to say yes, but they must consider the request, and many are realising the value of retaining experienced staff in flexible roles.

Importantly, this transition isn’t just financial. The emotional side matters, too. Work provides structure, social connection and purpose – things a pension can’t replace. One listener said, “I didn’t miss the job, but I missed being needed.” Which is why easing in slowly can be such a wise move.

Take a sabbatical. Travel. Volunteer. Try a new pursuit. Create a bit of breathing room to find out what you’ll actually miss – and what you won’t.

Two women featured in my upcoming book did exactly that. One took four months overseas, came back with clarity, and shifted to permanent part-time. Another gradually stepped back to focus on her health and grandchildren – and never looked back.

The rise of the “slashie” lifestyle

Younger generations coined the term “slashie”— someone with multiple roles or income streams. But it’s catching on in midlife and pre-retirement, too. Gen X and Boomers often describe it as a portfolio lifestyle: a mix of work, creativity, volunteering and space to breathe – or multiple roles, each of which combine to give you a greater sense of purpose.

It’s not always about money. It’s about meaning. And with the right financial foundation, many people are discovering they don’t need to do just one thing any more. They can shape a life from the things they want to do – not just what they have to do.

Australians in their 50s and 60s are entering this phase with far more financial tools – and far more flexibility – than previous generations. Many still have time to grow their balances. Others are realising they don’t need as much as they once thought, if they plan smart and live well.

The earlier you start thinking about dipping your toe in, the more freedom you’ll have to shape this next chapter. Whether you want to caravan, consult, surf, sew or spend more time with family, easing in — financially and emotionally — can make all the difference.

Because in the end, the best kind of retirement might not be the one you plan perfectly on paper. It’s the one you get to test drive, one step at a time and have confidence in.

Bec Wilson is the author of the bestseller, How to Have an Epic Retirement, and the newly released Prime Time: 27 lessons for the new midlife. She writes a weekly newsletter at epicretirement.net and hosts the Prime Time podcast.

• Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making financial decisions.

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