‘Phased retirement’ is a growing trend: Study

( NewsNation ) — At a time when many people are delaying retirement because of financial pressures, some workers are trying a different retirement strategy: phasing their withdrawal from the workforce.

“One in three (34%) workers age 50 and older either have already started phasing into retirement by reducing their work hours or job responsibilities as they near retirement or want to do so,” according to a survey from consultant firm WTW.

WTW’s 2024 Global Benefits Attitudes Survey says that most workers who are “phasing” have reduced their work hours or their job responsibilities. A smaller number are looking to change jobs within their industries or change where and how they work.

When asked what was driving their decisions about when and how to retire, the top reason was financial security (76%) followed by their health (50%) and having more time for family, leisure and travel (45%).

“Phased retirement can be a win-win for both employees and employers,” said WTW executive Jonathan Sterbanz. “Working fewer hours even with reduced pay can help employees transition into retirement both financially and emotionally.

“At the same time, companies want to hang onto experienced employees and encourage them to pass on their wealth of knowledge to younger employees,” he added.

While some people want to phase out of their careers, only about one-third of those asked say they believe their bosses are effectively using the skills of their older employees.

“Most employees think their employers can do a much better job of leveraging the skills of older workers,” said Sterbanz.

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