Is A “Phased Retirement” Your Best Option?

There’s been a lot of buzz lately about so-called “phased
retirements,” where older workers choose to work less — and
on their own terms — rather than retire completely. This
can ease the financial burden of having to live entirely off
your retirement savings or social security, while still
allowing flexibility and time to do the things you really
enjoy in life.

And this doesn’t mean you have to settle for working part-
time in a fast food restaurant or as a greeter in a
department store. More and more companies are using phased
retirements as a way of retaining their older employees,
which they see as valuable assets (which of course they
are). Older workers often have decades of critical
knowledge and experience that they can pass on to their
younger co-workers, which benefits everyone concerned.

Easing into retirement can lessen the shock of suddenly
having no place to go in the morning, a situation that many
newly-retired workers have difficulty adjusting to. This is
especially a problem for workaholic types who’ve been
logging 50 or 60 hour work weeks for most of their adult
lives. And for people who have no hobbies, outside
interests, or children, the hours of the day can seem to
stretch on and on.

There are also financial considerations with retirement.
With people living longer than ever, and the ever-increasing
cost of living, it’s becoming harder to retire with a
comfortable standard of living (especially if you want to
travel, upgrade your home, buy expensive furnishings, etc).

Which is where phased retirements come in. In one recent
survey, over 60 percent of workers between 50 and 70 years
old said that they’d like to work part-time before they
fully retire. These older workers also want retirement
benefits, health insurance, and other benefits — although
most realize that a smaller paycheck will be part of the
deal as well.

Not all employers are willing or able to allow their older
workers to ease into retirement. In fact, formal programs
of this type are rare, so you’ll probably have to approach
your boss or human resource department and make some sort of
informal arrangement. If there are other older workers at
your company already in a flex program, then you ask them
about their arrangement, and how it was established.

One reason that formal phased retirement programs are rare
is the fact that the Federal Government hasn’t enacted
legislation in order to define just how such programs should
be administered. There are health insurance issues with some companies, and pension rules that prohibit some employers
from giving partial retirement payments to workers who wish
to trim back their hours before full retirement age.

But with the overall population aging, and the baby boom
generation approaching 60, look for more companies — large
and small — to implement some sort of phased retirement
program.

After all, if done correctly, it can turn out to be a win-
win situation for everyone.

Kent Johnson - author, publisher, career coach.
“Helping people realize their dreams one career at a time.”
Your Dream Career.com - your source for career tips and info
==> http://your-dream-career.com

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