What is the concept of “phased retirement”?

Phased retirement refers to the process of gradually transitioning from full-time work to full retirement. This is characterized by reducing work hours or responsibilities over time, allowing individuals to adjust to retirement while still participating in the workforce. This approach can benefit both employees and employers; employees may appreciate the ability to ease into retirement while maintaining an income and social connections, while employers can retain experienced workers for longer periods.

This approach can make the transition smoother and more manageable, both psychologically and financially, for individuals nearing retirement age. It also helps organizations retain valuable knowledge and skills that are often lost when employees retire completely and suddenly.