By Kent Johnson

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.
 

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