Could a Phased Retirement Be Right for You?


Filed under: Retirement


When we think about retirement, we often picture ourselves setting a target date and then taking the leap into a new life. However, recent trends show us that there might be another way to retire, and this path can carry some distinct benefits for some of us.

In 2017, a survey by TransAmerica Center for Retirement Studies found that about half of large employers had become aware of employee interest in phased retirement paths. Nearly one third of employers are actually offering that option already, with more projected to follow the trend.

Even among companies without a formal phased retirement program, it is often possible to work out a similar arrangement. Since demand is continuing to grow, we will probably see more workers and employers negotiating these opportunities.

Why phased retirement?

An individual’s exact reasons can vary, but some of the more common motivations for choosing a phased retirement include:

  • A gradual transition to a new budget, rather than attempting a sudden adjustment
  • A desire to continue working a bit longer, but health issues or life circumstances necessitate a shorter work week or fewer hours at the office
  • Concern over the lifestyle changes of retirement – what will you do with all that free time? Will you feel bored or lonely?
  • A desire to retire now, along with most of the financial ability, but a need for a bit more time to pay down debts
  • Not feeling entirely “done” with your career

How does phased retirement work?

If your company offers a phased retirement plan, there might be a prescribed path that you’re required to take. On the other hand, you might be able to negotiate your own arrangements. Perhaps you want to reduce work responsibilities and lower your stress levels, or you need to cut back to a shorter work week. Either way, you will probably exchange hours or responsibilities for a lower rate of pay, helping you ease into a new retirement budget.

From the employer side of things, they are often happy to keep a more experienced worker for a few more years, to mentor younger members of the organization. Phased retirement can be a win-win scenario for everyone.

If you’re considering a gradual transition into retirement, let’s meet up and discuss your budget and income plan. Together we can decide if a phased retirement meets your objectives, and will be financially feasible in the near future.


If you would like more information or have specific questions, please contact us using the following form. We would be happy to assist you.

This information has been provided by a licensed insurance professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting the insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax, trust and estate, or investment advice. Infinite Wealth Advisors is not an investment advisory firm.  Investment Advisory Services provided by NAMCOA® – Naples Asset Management Company®, LLC, a federally registered investment advisor, website: www.NAMCOA.com .