Ease the Transition with Phased Retirement

Phased retirement is a process that many employees are turning to in order to ease the transition into full retirement. This strategy carries with it several different advantages to both the retiree and the employer. Here are a few things to consider about phased retirement.

Phased Retirement

Phased retirement is an arrangement between an employee and an employer in order to gradually ease the employee into being retired. With this arrangement, the employee will not be working a full schedule, as she was earlier in her career. She will not be fully retired and will still have certain responsibilities with the employer. There are many different types of arrangements that could classify as phased retirement.

Reduction of Hours

One example of a phased retirement is a reduction of hours. With this scenario, the employee will still work throughout the week, although her schedule will be significantly less than what it was. For example, she might work only 15 to 20 hours per week instead of the normal 40. This will provide her with more time to enjoy herself in retirement, but it will allow her to stay busy at the same time.

Seasonal Employment

Another example of phased retirement is seasonal employment. The retiree might be called upon only during the busiest seasons of the year for the employer. For example, the company might bring in the retiree for the Christmas season when the majority of sales occur. This arrangement gives the employer the ability to bring on extra help that does not require extra training. The retiree will be able to immediately come in and start working again.

Extra Income

One of the major advantages of this type of retirement is that it provides extra income for the retiree. Many retirees have trouble transitioning from having a regular income to a retirement income. With this strategy, they can combine their retirement incomes with regular paychecks from their employers. This makes it much more comfortable for them financially and allows them to transition slowly into living fully off of retirement pay.


Many employers also prefer this method because it allows them to retain experienced employees. In certain industries that do not have many qualified people coming into the business, they can still rely on highly knowledgeable employees that have been around for years. They can count on these employees to perform jobs that other employees are not qualified to do and leave the rest of the work for the full-time employees.


Many retirees report that this type of system makes the transition much easier on them. Many people have experienced a dramatic change going from full-time employment immediately to full-time retirement. Many of them do not know how to handle themselves and do not enjoy the process. With this gradual transition process, they can still do something that they are good at and have more time to enjoy the other things of life as well.

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