Phased Retirement: Something to consider instead of complete retirement

For people who have been working since they turned 18 to one day suddenly stop being employed can be quite a drastic change. We've heard multiple anecdotes about people sharing their retirement experience, most of them state how they weren't ready for a sudden transition. A lot of them feel lost confused, the availability of free time can every overwhelming and as they say, an idle mind is a devil's workshop. Phased retirement might just be the solution to all these problems.

Phased retirement is also beneficial for those who are not yet financially ready to retire. Phased retirement involves gradually cutting down on your working hours, easing into retirement. A survey conducted by The Harris Poll known as the Transamerican Retirement Survey of Workers showed that 45% of US workers plan on phasing their retirement. This is in addition to the fact that the number of employers offering phased retirement plans is also on the incline, noted a survey conducted by the Society for Human Resource Management. Phased Retirement can be obtained either through an official formal policy at your employer or informally. 15% of organizations are willing to offer some employees formal policies for phased retirement while 6% prefer an informal method. Having said that, so far phased retirement seems to be an option offered to employees of the top-tier of management or those with irreplaceable skills. The conversation around people working past their retirement age is also taking heat considering the advanced medical facilities and dwindling pension services, said Steve Parrish, co-director of the Centre for Retirement Income. 

Source: CNBC