Retirement is a huge step for many. After spending their life working a job that they have become accustomed to, they now have to leave what they are used to. Although retirement is what you want as you get older, it is not always an easy transition. However, there may be a way to make it much easier on you!
Phased retirement is beneficial to both the retiree and the company that they currently work for. This type of retirement offers the retiree to cut back on their hours while still working for their current company. Although this might not seem clear as to how it benefits the company, it definitely does! Often people leave the company without taking the time to train those that will be taking their position. Phased retirement allows those more experienced to cut back their hours, but at the same time train those less experienced to take over when they are gone. This way the company does not have to pull someone else off of their current job to train the new individual who will be taking over.
So, what’s the problem? Many companies have not adopted phased retirement for their employees despite the benefits surrounding it for everyone involved. Many companies only see a benefit in phased retirement if they are lacking in experienced employees at the company. However, the companies that do not take advantage of phased retirement today, may find that they are lost when all of the baby boomer generation decides to retire!
Phased retirement allows those looking to retire the ability to still collect retirement benefits and earn some money at the same time, but working fewer hours (such as 20 hours a week instead of 40). This allows for a much smoother transition when you are ready to completely retire. Adapting to retirement is not always easy; this way you have some time to adjust to having some time off and not going to work every day.
As for the companies that have taken part in offering their employees phased retirement, they have found that it not only helps with transitions and training but the morale of the whole company. The replacements that are moving into the company to take over for those that have retired are finding that they receive much more expert raining from those who have already worked in their position.
The slow transition into phased retirement is often due to lack of knowledge about how to construct the company around this type of benefit for employees. Some changes may need to be made in the company before they are able to have such a transition run smoothly for those involved.
Phased retirement helps people retire a little bit later, but work fewer hours. This way they can secure more money through social security and saving than they would have by retiring cold turkey. If you do not feel like you are completely ready to retire, you should ask your employer if they offer phased retirement. Although some people may prefer to retire all at once, others may feel as though the benefits of saving more money will help them in the long run.
Photo: Clara Natoli
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