Let’s talk about a game-changing approach to retirement that’s gaining traction: phased retirement. If you’re nearing retirement age or you’re a company leader thinking about your workforce’s future, this is something you’ll want to know about.
Why Is Phased Retirement Suddenly So Important
Here’s the reality: more people are retiring than ever before, and fewer new workers are entering the workforce to replace them. At the same time, people are living longer and many want to keep working, whether it’s for professional fulfillment, financial reasons, or simply because they love what they do. So, how do we bridge the gap between experienced employees who aren’t quite ready to say goodbye and organizations that need their expertise?
Enter phased retirement. A recent survey by the Transamerica Institute found that over a third of employers already offer phased retirement programs, and another 28% plan to roll them out soon. While it’s not everywhere yet, more companies – especially larger firms and public sector employers – are seeing the value.
What does phased retirement look like?
It’s flexible! Here’s what you might expect:
- Gradually reduced work hours – think part-time schedules or project-based work, sometimes even job sharing.
- Continued benefits – especially health insurance, which is a huge plus for many.
- Mentoring opportunities – passing on hard-earned knowledge to the next generation.
- Eligibility requirements – usually based on age and years of service.
- Education – covering everything from financial planning to lifestyle design via workshops, coaching, and resources.
Why should companies care?
If you’re an employer, phased retirement isn’t just a nice gesture – it’s a smart business move:
- Retain and transfer critical knowledge. When seasoned employees stick around a bit longer, you don’t lose their expertise overnight.
- Smooth out workforce transitions. Succession planning becomes easier when transitions happen gradually.
- Flex your payroll. Adjust staffing levels as needed, without abrupt changes.
- Show you care. Supporting employees at every career stage builds a positive, inclusive culture.
What’s in it for employees?
If you’re thinking about retirement, phased retirement can make the transition so much smoother:
- Keep earning. Your income doesn’t drop off a cliff, instead you can scale back gradually.
- Hold onto benefits. Health insurance and other perks can continue, easing worries about coverage.
- Stay connected. You keep your sense of purpose and community, which is vital for emotional, social and mental wellbeing.
- Ease into your next chapter. Instead of an abrupt stop, you get time to adjust, plan, and explore what’s next.
Bottom line: Phased retirement is the future of work. It’s flexible, it’s humane, and it benefits everyone. Companies keep their talent and knowledge, and employees gain a softer landing into retirement – financially, emotionally, and socially. Why not make the transition to retirement something everyone can look forward to?
Let’s hear from you:
- Have you tried phased retirement?
- Is your program formal or informal?
- What works well, and what do you wish it included?
Share your thoughts and experiences! Whether you’re planning your own transition or shaping your company’s future, your insights can help others make the most of this exciting new approach.
Carol Bergeron guides people through major life transitions with a focus on self-reflection, visualization, and collaboration. She helps clients adapt to personal and professional changes, especially when shaping modern retirement lifestyles, which involve emotional, social, lifestyle, and health-related shifts converging all at once.
Learn more about navigating life’s transitions by:
exploring upcoming small group coaching programs: https://www.eventbrite.com/e/6-session-retirement-life-design-program-registration-1458536615279?aff=odcleoeventsincollection (our next program begins Oct 27th)
subscribing to Carol’s Transition Touchpoints newsletter on LinkedIn: https://www.linkedin.com/newsletters/transition-touchpoints-7342996223898923008
© Copyright 2025 Bergeron Associates. All rights reserved.
