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The Rise of Semi-Retirement for Jabil Employees: A Flexible Transition to Retirement

'Jabil employees considering semi-retirement can benefit from not only a flexible work schedule but also the financial advantages of continuing to contribute to retirement savings while maintaining a sense of purpose and social engagement.' – Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.

'Transitioning to semi-retirement can be a smart strategy for Jabil employees to balance continued financial growth with personal well-being, offering both income opportunities and a healthier work-life balance.' – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

The benefits of semi-retirement for Jabil employees, including financial and psychological advantages.
The economic opportunities, such as contributing to retirement accounts and delaying Social Security benefits.
Important considerations when transitioning to semi-retirement, including taxes, health care, and the impact on Social Security benefits.

As retirement approaches, many Jabil employees are rethinking what it means to 'retire.' Traditionally, retirement has meant leaving the workforce entirely, but this notion is shifting, with semi-retirement becoming an increasingly popular and viable option. Semi-retirement offers a flexible way to transition into retirement while maintaining professional involvement, whether driven by a desire to stay active or by financial needs.

Semi-Retirement: What Is It?

Semi-retirement is when employees reduce their work hours, while still engaging in part-time or freelance opportunities. For Jabil employees, this could involve cutting back hours at a full-time position, taking on part-time roles, or venturing into self-employment through consulting or freelance work.

Some may need to be in semi-retirement due to insufficient savings or unexpected financial circumstances, even after reaching the typical retirement age. Others may feel motivated to continue working due to personal fulfillment, a sense of purpose, or the social connections that work provides. Semi-retirement offers a balance between leisure and activity, benefiting many by enhancing their overall well-being.

Important Takeaways:

Jabil employees who transition into semi-retirement can still earn an income while enjoying more free time.
Semi-retirement provides psychological as well as financial benefits, helping individuals maintain relationships and stay engaged.
It's important to understand the tax implications, and the effects on Social Security benefits and health care coverage, before entering semi-retirement.

The Economic Advantages of Semi-Retirement

One of the most direct financial benefits of semi-retirement is the ability to supplement retirement funds. Even though part-time jobs may not offer the same salary as full-time positions, they can still contribute to a financial cushion for retirement.

Jabil employees in semi-retirement may still be eligible to make contributions to retirement accounts such as IRAs. Individuals over 50 can take advantage of catch-up contributions, allowing them to save even more for retirement. In 2025, the IRA contribution limit is $8,000, including a $1,000 catch-up contribution. Jabil employees who participate in a 401k can benefit from a $7,500 catch-up contribution, increasing the maximum contribution to $30,000 for those over 50, and up to $35,500 for employees aged 60 to 63.

Additionally, continuing to work part-time can delay the start of Social Security benefits, which can increase the monthly payout when benefits are eventually claimed. For Jabil employees who expect to live longer and wish to increase their retirement income, delaying Social Security can result in an approximately 8% increase in benefits for each year they wait after reaching full retirement age (FRA).

Semi-retirement can provide a cushion against unexpected financial setbacks, such as market downturns or unforeseen expenses. With a second income and the ability to delay drawing from retirement accounts, employees can strengthen their financial future.

The Psychological Benefits of Semi-Retirement

While the financial incentives are clear, semi-retirement also offers important psychological benefits. The transition from a full-time career to retirement can be overwhelming, especially for those who have worked for decades. The loss of a job-related identity and the potential for social isolation can take a toll on mental health, leading to increased risks of loneliness, anxiety, or depression.

Semi-retirement provides a solution by maintaining social connections and a sense of purpose. It offers structure while allowing for greater freedom, which can help employees stay engaged and emotionally fulfilled. Kevin Won, a financial advisor with The Retirement Group, suggests that reducing work hours rather than quitting altogether can contribute to a more successful retirement.

Not all Jabil employees are suited for semi-retirement, however. Teresa Ghilarducci, a labor economist, warns that those in high-stress, low-control jobs might find that continuing to work, even part-time, could exacerbate stress and health issues. It's important for each employee to evaluate their own situation and whether part-time work will improve or hinder their quality of life.

How to Determine If Semi-Retirement Is Right for You

For Jabil employees, deciding if semi-retirement is the right path involves considering both financial and personal factors. Financially, it's important to assess how much more needs to be saved and how long one must work in semi-retirement to cover retirement expenses. Thoughtful questions such as 'How much more do I need to save?' and 'How long will I need to work to support my retirement?' can guide the decision-making process.

Employees with adequate savings who still want to build their nest egg can use semi-retirement as an opportunity to work more flexibly and add to their retirement funds. This additional income could provide a cushion against economic uncertainties.

For those seeking purpose or a new challenge, semi-retirement may involve consulting, freelancing, or taking on projects that align with personal interests. Jabil employees who are motivated by a desire to remain engaged in meaningful work will find semi-retirement an ideal option.

Things to Consider Before Moving Into Semi-Retirement

Before transitioning to semi-retirement, Jabil employees should carefully consider the potential impact on their health care, taxes, and Social Security benefits.

Taxes:

Working part-time during semi-retirement can impact tax brackets. Additional income from part-time work or retirement account withdrawals may push employees into a higher tax bracket, increasing their tax liability. It's important to stay informed about tax changes and plan accordingly.

Social Security:

If an employee is under full retirement age (FRA), working part-time while receiving Social Security benefits may reduce the monthly income. For example, in 2025, employees under FRA who earn more than $23,400 may see a reduction of $1 in Social Security benefits for every $2 they earn above this threshold. Once FRA is reached, any withheld benefits will be reinstated.

Health Care:

Retirees under 65 must purchase health insurance through the marketplace until they are eligible for Medicare at age 65. Employees staying in their jobs may continue to access employer-sponsored insurance. Understanding how health care costs will be managed during the transition to retirement is crucial, especially for employees who will continue to rely on company health benefits.

The Bottom Line

Semi-retirement offers Jabil employees a flexible, fulfilling way to ease into retirement without losing the financial and social benefits of work. With the potential to supplement retirement savings, delay Social Security claims, and maintain social connections, semi-retirement may provide a balanced approach to transitioning into full retirement.

By weighing the financial and personal factors, employees can make an informed decision that aligns with their long-term goals, leading to a smooth and sustainable retirement journey.

This growing trend reflects a shift toward a more gradual, controlled approach to retirement, with nearly 30% of Americans over 60 considering semi-retirement ¹ as a way to preserve both financial stability and personal fulfillment.

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Sources:

1. ' 4 Key Reasons Retirement Is Out of Reach for Many Older Americans ,' by Cynthia Meason. Yahoo!finance, 17 June 2025.

Other resources:

1. 'The Rise of the Semi-Retired Life.' Investopedia, 25 Oct. 2016, www.investopedia.com/articles/retirement/102216/the-rise-semi-retired-life.asp .

2. 'The Amazing Tax Benefits of Semi-Retirement.' Can I Retire Yet?, 25 May 2020, www.caniretireyet.com/tax-benefits-of-semi-retirement/ .

3. 'Delayed Retirement Credits.' Social Security Administration, www.ssa.gov/benefits/retirement/delayed-retirement-credits/ .

4. 'How Working in Later Years Can Improve Your Health.' Investopedia, 28 May 2025, www.investopedia.com/articles/retirement/052816/how-working-later-years-can-improve-your-health.asp .

5. '5 Advantages of Semi-Retirement.' Minster Bank, 15 Sept. 2024, www.minsterbank.com/5-advantages-of-semi-retirement/

How does Jabil Circuit ensure the long-term sustainability of its Pension Scheme, and what role do the trustees play in this? In what ways does the investment strategy align with Jabil Circuit's overall business goals and the financial security of its employees?

Jabil Circuit Sustainability of Pension Scheme: Jabil Circuit ensures the long-term sustainability of its pension scheme by setting clear investment objectives that align with the interests of its members and beneficiaries. The trustees, operating under Jabil Pension Trustees Limited (JPT), focus on meeting the scheme's obligations and achieving asset returns above gilts over the long term, while balancing risk control and return generation. The investment strategy is designed to be consistent with return assumptions used by the scheme actuary, considering Jabil's interests in employer contribution payments.

What are the primary objectives of the investment policy for the Jabil Circuit Pension Scheme, and how do these objectives impact the decision-making process regarding asset allocation and risk management? Additionally, how do Jabil Circuitâ€™s obligations to its beneficiaries shape these objectives?

Investment Policy Objectives: The primary objectives of Jabil Circuit's pension scheme investment policy are to meet the scheme's obligations to beneficiaries and to achieve long-term asset returns above gilts. These objectives influence decision-making in asset allocation and risk management by ensuring a balance between risk control and return generation. Jabil Circuit's obligations to beneficiaries shape these objectives by prioritizing financial security and the interests of the members.

Can you elaborate on the Environmental, Social, and Governance (ESG) policies of Jabil Circuit and how these policies influence investment decisions made by the Jabil Circuit Pension Scheme? In what ways does Jabil Circuit engage with its investment managers to uphold these ESG principles?

ESG Policies Influence: Jabil Circuit incorporates Environmental, Social, and Governance (ESG) policies into its investment decisions through a structured policy that includes climate change considerations. This policy guides the trustee's engagement with investment managers, ensuring ESG factors are considered in the investment process. Regular reviews and training provided by Mercer help reinforce these principles and ensure they are integrated into the pension scheme's investment strategy.

How do climate change considerations factor into Jabil Circuit's investment approach, particularly in the context of the Pension Scheme? What measures does Jabil Circuit take to assess and manage climate-related risks associated with its investment portfolio?

Climate Change Considerations: Climate change is a significant factor in Jabil Circuit's investment approach, particularly for the pension scheme. The trustees undertake climate scenario modeling and stress testing annually, aligning the investment portfolio with climate-related financial disclosure recommendations and the Paris Agreement objectives. This approach helps manage climate-related risks and ensures the portfolio is positioned to handle various climate scenarios.

What strategies does Jabil Circuit employ to communicate and engage with employees regarding their pension benefits and retirement options? How can employees participate in discussions about changes or updates to the Jabil Circuit Pension Scheme?

Employee Communication and Engagement: Jabil Circuit employs strategies to actively engage with employees regarding their pension benefits and retirement options. Regular reporting and updates are provided, and employees have opportunities to participate in discussions about changes to the pension scheme. This open communication ensures employees are well-informed and can make knowledgeable decisions about their retirement planning.

In the context of the current IRS limits for 2024, how does Jabil Circuit assist employees in understanding their retirement savings options, particularly in relation to contributions to the Pension Scheme? What resources are available for employees to navigate these changes?

Understanding Retirement Savings Options: In light of the current IRS limits for 2024, Jabil Circuit assists employees by providing resources and guidance on retirement savings options, particularly concerning contributions to the pension scheme. Educational materials and support systems are in place to help employees understand how these changes affect their retirement planning and contributions.

How does the Jabil Circuit Pension Scheme address the issue of responsible investing, and what are the specific exclusions that have been put in place? How does Jabil Circuit balance ethical investment practices with the need for financial returns?

Responsible Investing: Jabil Circuit addresses responsible investing through clear exclusions and ethical investment practices within its pension scheme. The scheme excludes investments in controversial and civilian weapons and tobacco from its active fixed income funds. This approach balances ethical considerations with the need for financial returns, adhering to broader corporate responsibility standards.

What is the frequency and nature of the reporting provided to Jabil Circuit regarding the performance of the Pension Scheme investments? How does this reporting influence the strategic decisions made by the trustees in managing the scheme?

Investment Performance Reporting: The frequency and nature of reporting on the pension scheme's investment performance involve regular updates from Mercer, the investment consultant. These reports influence the trustees' strategic decisions by providing insights into asset performance, risk management, and compliance with investment objectives. This systematic reporting ensures that the trustees are well-informed to manage the scheme effectively.

How has the trustee board of the Jabil Circuit Pension Scheme evolved over time, and what qualifications or experiences do board members bring to their roles? In what ways do these factors contribute to effective oversight of the Pension Scheme?

Evolution and Qualifications of Trustee Board: The trustee board of the Jabil Circuit Pension Scheme has evolved to include members with specific qualifications and experiences that contribute to effective oversight. Regular training sessions and strategic reviews help trustees stay informed and capable of managing complex investment decisions, ensuring the pension scheme is managed with expertise and due diligence.

How can employees contact Jabil Circuit to learn more about their specific benefits under the Pension Scheme and to seek guidance during the retirement process? What channels are available for employees to access this information effectively?

Contacting Jabil Circuit for Pension Benefits: Employees seeking information about their benefits under the Jabil Circuit Pension Scheme can contact the human resources department or designated pension scheme administrators. Multiple channels, including direct consultations, informational seminars, and online resources, are available to ensure employees have effective access to guidance throughout their retirement process.