That is somewhat similar to the older method I tried in Maya before I figured out a better way. Actually probably better than my older approach, which was to push the base mesh in instead because Maya lacks the offset modifier for modeling. It should help keep the clipping down drastically, but it definitely is still more…
Or what wrapit does - duplicate the reference mesh and apply a Push modifier to the copy, and set this mesh to be the target for your retopo projection. Then hide it and use the original mesh as visual reference. What's cool in Wrapit is that it uses nearest surface for the retopo instead of normal or view-based…
There is an offset option built into the retopo tool in the graphite modeling tools. It will push the retopo away from the surface. You can then use a push modifier with a negative value to shrink it back a bit once you're finished. You can also animate the transparency of the material that is applied to the reference…