What is one advantage of phased retirement for employees?

One of the key advantages of phased retirement is that it helps smooth the transition to full retirement. This approach allows employees to gradually reduce their working hours or responsibilities, which can be beneficial for both the individual and the employer. As employees transition from full-time work to retirement, they can adjust to the significant changes in their daily routines, work-life balance, and personal identities that accompany this life stage.

This gradual shift enables employees to bridge the gap between their current work life and fully retiring, allowing them time to consider how they will spend their time once they are no longer working. It can also ease the psychological transition by maintaining some level of professional engagement while starting to engage more in leisure activities or personal interests.

A phased retirement can also enable employers to retain valuable expertise and knowledge, as employees who slowly retire can mentor younger workers and help maintain continuity within the organization. This mutual benefit enhances the value of phased retirement programs for both parties involved.