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. Payout Phase

    The phase in an annuity during which payments are made to the ...
  2. Retirement Readiness

    The state and/or degree of being ready for retirement. Retirement ...
  3. Phases Of Retirement

    A six-stage process described by researcher Robert Atchley that ...
  4. Accumulation Phase

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

    The period when the annuitant starts to receive payments from ...
  6. Death Master File (DMF)

    Also known as Social Security Death Index. A list of people whose ...
Related Articles
  1. A Pre-Retirement Checkup
    Budgeting

    A Pre-Retirement Checkup

  2. Retirement Lessons To Teach Your Children
    Options & Futures

    Retirement Lessons To Teach Your Children

  3. 5 Retirement Questions Everyone Must ...
    Retirement

    5 Retirement Questions Everyone Must ...

  4. Journey Through The 6 Stages Of Retirement
    Retirement

    Journey Through The 6 Stages Of Retirement

comments powered by Disqus
Hot Definitions
  1. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  2. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  3. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  4. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  5. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
  6. Earnings Before Interest After Taxes - EBIAT

    A financial measure that is an indicator of a company's operating performance. EBIAT, which is equivalent to after-tax EBIT ...
Trading Center