Phased Retirement

AAA

DEFINITION of 'Phased Retirement '

A broad range of employment arrangements that allow an employee who is approaching retirement age to continue working with a reduced workload, and eventually transition from full-time work to full-time retirement. Phased retirement may include a pre-retirement, gradual reduction in hours (or days) of work and/or post-retirement, part-time work for pensioners who wish to remain employed.

Part-time, seasonal and temporary work or job-sharing are all work arrangements that can be a form of phased retirement.

INVESTOPEDIA EXPLAINS 'Phased Retirement '

The nature of retirement is changing, and many workers do not wish to experience a sudden end to work, followed by the equally sudden onset of full-time retirement. Instead, many workers wish to ease into retirement, transitioning out of the workforce with a reduced workload.

It is seen as a benefit by many older workers, as it allows them to gradually ease into retirement while maintaining a higher income than they would receive if they quit work entirely. From the employers' point of view, phased retirement programs can be used to retain skilled older employees who would otherwise retire (especially in sectors where there is a shortage of entry-level job applicants), to reduce labor costs or to arrange the training of replacement employees by older workers.

RELATED TERMS
  1. Phases Of Retirement

    A six-stage process described by researcher Robert Atchley that ...
  2. Annuitization Phase

    The period when the annuitant starts to receive payments from ...
  3. Retirement Readiness

    The state and/or degree of being ready for retirement. Retirement ...
  4. Accumulation Phase

    1. A period of time when an annuity investor is in the early ...
  5. Payout Phase

    The phase in an annuity during which payments are made to the ...
  6. Senior Move Manager

    Senior move managers (SMMs) help seniors downsize and relocate ...
RELATED FAQS
  1. How should I invest the money I keep on my IRA?

    For individuals who are just starting to save, certificates of deposit can be a good place to start, but the interest rates ... Read Full Answer >>
  2. Why choosing the right investment adviser is crucial for your portfolio's health

    Just as finding a good mechanic will help keep your car running smoothly, finding a good broker or financial advisor can ... Read Full Answer >>
  3. What documents I need to transfer an IRA/SEP/SIMPLE to a Traditional IRA?

    Most firms require that you complete their account transfer request form, which they use to request the transfer of assets ... Read Full Answer >>
  4. Is there a limit on how much I can move from my IRA to my Roth IRA?

    There is no limit on the amount that can be converted from your Traditional IRA to your Roth IRA. To learn more, read Retirement ... Read Full Answer >>
  5. What is the difference between a fixed and variable annuity?

    For many people, saving for retirement means tucking money away in a diverse range of investments. Because traditional savings ... Read Full Answer >>
  6. What's the difference between a financial advisor and a financial planner?

    A financial advisor can be a financial planner. However, the term is not limited to financial planning in and of itself. ... Read Full Answer >>
Related Articles
  1. Budgeting

    A Pre-Retirement Checkup

    Are you on track to post-work bliss? We'll tell you how to find out.
  2. Options & Futures

    Retirement Lessons To Teach Your Children

    If your retirement plan hasn't worked out, at least your children can learn from your mistakes.
  3. Retirement

    5 Retirement Questions Everyone Must Answer

    Find out what information you need to guide your planning and achieve your goals.
  4. Retirement

    Journey Through The 6 Stages Of Retirement

    Financial planning is important, but emotional planning is the key to retiree bliss.
  5. Options & Futures

    Can You Retire In Five Years?

    The countdown is on. Find out whether you'll be ready to leave the working world.
  6. Personal Finance

    A Guide to Financial Education for Doctors

    Doctors need to choose the educational option which best fits his or her time, schedule and learning preference. Here's a guide.
  7. Professionals

    Top Retirement Planning Tips for Singles

    Single clients often face an uphill battle when it comes to retirement planning. Here are some tips to get them on the right path.
  8. Retirement

    Find The Top Retirement Cities In Australia

    Australia has some of the world's most livable cities. Did we mention the beaches?
  9. Retirement

    Retire In Vietnam With $200,000 Of Savings?

    An excellent retirement "buy" because English is spoken widely, the cost of living is compellingly low, and Americans are generally welcome.
  10. Retirement

    Some Tax Considerations For Your Retirement Income

    Even if you don’t plan to retire, it’s still a good idea to think ahead about where to live, your income and how it all interacts with Social Security.

You May Also Like

Hot Definitions
  1. Adverse Selection

    1. The tendency of those in dangerous jobs or high risk lifestyles to get life insurance. 2. A situation where sellers have ...
  2. Wash Trading

    The process of buying shares of a company through one broker while selling shares through a different broker. Wash trading ...
  3. Fixed-Income Arbitrage

    An investment strategy that attempts to profit from arbitrage opportunities in interest rate securities. When using a fixed-income ...
  4. Venture-Capital-Backed IPO

    The selling to the public of shares in a company that has previously been funded primarily by private investors. The alternative ...
  5. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless ...
  6. Market Failure

    An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers ...
Trading Center