Phased Retirements–An Approach That Doesn’t Seem to Be Taking Off?
Investpoedia defines “phased retirements” this way: “A broad range of employment arrangements that allow an employee who is approaching retirement age to continue working with a reduced workload, and eventually transition from full-time work to full-time retirement. Phased retirement may include a pre-retirement, gradual reduction in hours (or days) of work and/or post-retirement, part-time work for pensioners who wish to remain employed. Part-time, seasonal and temporary work or job-sharing are all work arrangements that can be a form of phased retirement.”
So, with all the financial pressures on folks aging into their retirement years, and with all the media accounts of a serious lack of accumulated savings among soon-to-be-retirees, why is the concept not relaizing widespread acceptance among employers? A study published recently by Transamerica Center for Retirement Studies (TCRS) notes that less than a third of the 1800 employers surveyed offer this benefit to senior employees, despite recognizing that nearly 80% of those senior employees plan to continue working after reaching their retirement milestone.
Forbes contributor Kerry Hannon examines the concept of “phased retirement” in an article posted on www.forbes.com, focusing on the benefits available to employer as well as the reasons why the popularity of the concept is not blossoming as expected. Her post also includes some strategies for employees to use in negotiating a phased approach to their workplace exit. Read her article here…