What is phased retirement?
Retirement doesn’t have to be such a clean-cut process; you don’t have to feel as though you can only work until you’re 65 years old and then be forced to retire. A Merrill Lynch Retirement Study, in partnership with Age Wave, reveals that 72% of pre-retirees in America aged over 50 years, say that they want to keep working after they reach their retirement age. Coupled with the notion that retirees are also living longer, why not give your career a few more years? We take a look at what phased retirement is and how it could benefit you, especially if you are not quite ready to ‘throw in the towel’.
What is phased retirement
If you’re not ready to leave your work just yet, there is a solution, it’s called the phased retirement approach. This entails employees nearing retirement to make an arrangement with their employer to extend their career; this approach opens up to reduced work hours, half day working arrangements, coming on board as a consultant for a time frame or working on certain days of the week.
There are a few perks when choosing phased retirement. For many, money is a large concern and by going the phased retirement route, you will be able to still earn a salary. As we get older, it can become difficult to keep up the same pace in the office, by using this solution you can create a working schedule that best suits you with your employer. The same research study by Merrill Lynch and Age Wave found that working retirees are more stimulated and connected. This study found that 83% of retirees said that working in retirement helps them stay more youthful.
The phased retirement route is a win-win solution for both employer and employee. Businesses can retain key employees and also use their skills to teach younger, inexperienced employees.