Phased Retirement

"Nearly 70 percent of the 5 million people who have left the labor force during the pandemic are older than 55, according to researchers from Goldman Sachs, and many of them aren't looking to return. Companies and their HR teams are working to address this." Link to full article . Published by SHRM .

Ageless entrepreneurship can be a great option for those people interested in pursuing their profession through phased retirement. "Phased retirement is a concept that's gaining momentum—and popularity. But what is it, and should you be asking your employer about it? Experts share the pros and cons of this approach to retirement." "Let's start with the obvious. Retirement is one of the biggest life transitions we will ever make. And whether we're talking about playing a sport, running a business, or basic life skills, humans perform better and achieve more successful outcomes when they've had the opportunity to practice a skill." Full article: Everything You Need to Know About Phased Retirement Real Simple. June 07, 2021

"A phased retirement program that avoids an employee’s immediate, complete transition to retirement could make situations like this more productive and less stressful for all parties. Tyler Papaz, director of private wealth with Cornerstone Advisors Asset Management in Bethlehem, Pennsylvania, says one major advantage to phased retirements is that employers can better formalize a succession plan for key employees." Original article via PLANSPONSOR.com December 29, 2021

This is the first of a two-part series published by SHRM - The Society for Human Resource Management "Phased retirement is an employer-based program that allows older workers to reduce their working hours and transition into retirement. These programs may include a partial drawdown of funds from defined contribution or defined benefit retirement plans and continuing employer-sponsored health coverage." '"Older workers may be tired of dealing with their current level of responsibility and are looking for less-stressful roles or roles that are project-based, where their schedules can be more flexible," said Sean Nehlsen, Cleveland-based regional managing director at OneDigital, an HR services provider.' Phased retirements also can allow time for older workers to share their knowledge with other employees, Nehlsen said. "When employees announce that they're ready to retire, it's too late to do any transfer of knowledge," he noted, which...

This 'phased retirement' blog is a service of the nonprofit Center for Ageless Entrepreneurs (CAE). We use 'phased retirement' to mean that older workers and their employers can set up a plan for the employee to gradually shift from full time to part time status while giving the employee a chance to launch their own small enterprise - potentially an enterprise connected to their recent employer. The U.S. Office of Personnel Management (OPM) uses this definition: "Phased Retirement is a human resources tool that allows full-time employees to work part-time schedules while beginning to draw retirement benefits. This new tool will allow managers to better provide unique mentoring opportunities for employees while increasing access to the decades of institutional knowledge and experience that retirees can provide." Link to this OPM definition and federal research is below We will use this blog to post research and commen...