absolutely people "semi retire", they get a few consulting gigs here and there, and earn a bit from that. They're usually very good at what they do and get called in to accomplish a specific task, perhaps one that needs a very special skillset.
That's different to a 55 year old, looking for a permanent position, with a history of job hopping. And to be clear i's not the age that worries me, it's the hopping. I believe a 30-somthing who's looking to "settle down a bit more" - I don't believe a 55 yo with that story.
I follow the idea that when people show you who they are, believe them. As an _employer_ I'm just not excited by people who are around for a couple years, then move on. Assuming there's competition for the post, I'd likely lean towards the one with the better track record (all other things being equal.)