Programs that allow workers nearing retirement age to reduce their work hours while keeping part of their wages and benefits are becoming increasingly popular.
36% of human resources executives say they plan to offer a phased retirement program this year, according to a new survey from asset management firm Mercer.
That’s up from the 15% of companies that informally offered a phased retirement program last year, according to the Society for Human Resource Management.
“With inflation, there are employees who aren’t financially prepared for full retirement, so they’re asking for it. Based on certain positions, and there are also employers who find it difficult to replace certain retirees in the labor market, so they also make this request to employees as a trial period for retirement,” Karen said. Burke, Knowledge Advisor at SHRM.
“It’s a win-win situation, I think employers can keep good people and good employees, work longer and enjoy this later phase of life, there’s so much to give,” he said. she continued.
In addition to financial reasons, other workers say they want to continue working after retirement age to give themselves a goal.
Phased retirement happens in all sorts of industries to retain more experience in the job market.
this ranges from technology and financial companies to healthcare and engineering.
Some companies offer workers a new contract allowing them to return to work on certain projects.
“And then there’s a whole range of simple continuations of flexible working that a lot of people are enjoying right now, you know, flexible their schedules because of COVID, being able to work more remotely and just extending that flexibility to working in flexibility to retirement,” said Yvonne Sonsino, partner at Mercer.
However, companies may face some challenges if they add a phased retirement option.
“The increased risk of discrimination complaints, there are ways around that. Having a formal plan in place and ensuring it is consistently implemented by all retirees can reduce some of these factors and concerns for employers,” Burke said.
If your company doesn’t have a formal phased retirement program, it’s something HR officials say you can discuss with your boss, to see if a deal might be right for you.