Is working part-time right for you?

If you've ever daydreamed about cutting back your work hours there's a lot to consider before taking the leap.  

Did you know almost one-third of workers in Australia work part-time1 and that Australia has one of the highest rates of part-time employment in the world2?

Perhaps you’re returning to work after having a baby, reducing your work days ahead of retirement, want to free up some time to pursue a passion, return to study or you just want a more balanced life? Whatever your reason, it’s not a decision to take lightly.

Before you get excited about working a shorter week, you need to think about whether it’s the right decision for you. Here are some things to consider, as well as some potential traps to avoid.

What are the benefits of working part-time?

  1. Enjoy your new lifestyle. You’ll have more time, but don’t waste it! Don’t take on the burden of extra chores - plan how you’ll manage your free time and ensure you get help around the house.
  2. Get physical! With less time spent on travelling and working, you’ll have more time to devote to getting fit. Get those joggers on and start walking!
  3. Be your own social network. Take time out to spend with your family, catch up with friends for coffee or take the children, grandchildren or pets to the park.
  4. Invest time in yourself and others. Take up yoga, join the library, volunteer for community work or visit a sick relative.
  5. Boost your retirement funds. If you’re planning to retire soon you’ll still be earning an income, and adding to your super.

What else do I need to consider?

  1. Be realistic about your finances and whether you can afford to earn less income. Work out your budget and calculate whether your new income will stack up against your ongoing expenses, as well as those unexpected purchases, such as a new fridge.
  2. Even though you’ll be working less days, don’t fall into the trap of working longer hours. If you’re moving from five days a week to three, you need to make sure your workload fits into your new timeframe.
  3. Earning less now might have an impact on your super in the future. Use our super simulator to see whether working fewer hours will still allow you to enjoy the lifestyle you want in your retirement.

What’s next?

If you’ve worked out all your finances and you feel you’re ready to move to a shorter working week, then you’re living the dream!

But if you need help to work out whether you can afford to reduce your working hours or income, speak to your financial adviser, call us on 131 267 or find a financial adviser.
 

Budget planner calculator

Use our Budget planner calculator to assess your current financial position and how much you may be able to invest. 

Start budgeting today

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Any advice in this page is general in nature and is provided by AMP Life Limited ABN 84 079 300 379 (AMP Life). The advice does not take into account your personal objectives, financial situation or needs. Therefore, before acting on this advice, you should consider the appropriateness of this advice having regard to those matters. AMP Bett3r Account is issued by AMP Bank Limited ABN 15 081 596 009, AFSL 234517. Consider the terms and conditions available on request by calling 13 30 30 or at amp.com.au/bett3r and whether this product is appropriate for you. Fees and charges apply.

Although the information is from sources considered reliable, AMP does not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any decision. Except where liability cannot be excluded, AMP does not accept any liability for any resulting loss or damage.