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Phased Retirement: Problems and Prospects

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  • Robert Hutchens
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    Abstract

    As baby boomers near traditional retirement ages, many express an intent to work longer. But older workers often look for greater flexibility that would allow them more time for non-work activities. Not surprisingly then, the notion of phased retirement — where an older full-time worker remains with the same employer and gradually reduces work hours — has considerable appeal for employees. Phased retirement may help employers as well by allowing them to keep experienced and productive workers. This brief begins by exploring the potential benefits of phased retirement. The next section documents the extent of phased retirement in today’s workplace and describes the types of people who take it. The following section discusses the problems that employers face when arranging phased retirements. The brief concludes that, while rare today, phased retirement may become more popular in the future.

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    File URL: http://crr.bc.edu/briefs/phased-retirement-problems-and-prospects/
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    Bibliographic Info

    Paper provided by Center for Retirement Research in its series Work Opportunity Briefs with number wob_8.

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    Length: 10 pages
    Date of creation: Feb 2007
    Date of revision: Feb 2007
    Handle: RePEc:crr:crrwob:wob_8

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    Keywords: baby boomers; traditional retirement ages; older workers; phased retirement; potential benefits;

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    References

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    1. Steven G. Allen & Robert L. Clark & Linda S. Ghent, 2003. "Phasing Into Retirement," NBER Working Papers 9779, National Bureau of Economic Research, Inc.
    2. Joseph F. Quinn & Richard V. Burkhauser & Daniel A. Myers, 1990. "Passing the Torch: The Influence of Economic Incentives on Work and Retirement," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number pt.
    3. Steven G. Allen & Robert L. Clark & Linda S. Ghent, 2004. "Phasing into retirement," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 58(1), pages 112-127, October.
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    Cited by:
    1. Calvo, Esteban & Haverstick, Kelly & Sass, Steven, 2007. "What Makes Retirees Happier: A Gradual or 'Cold Turkey' Retirement?," MPRA Paper 5607, University Library of Munich, Germany.
    2. Leora Friedberg & Michael Owyang & Anthony Webb, 2008. "Identifying Local Differences in Retirement Patterns," Working Papers, Center for Retirement Research at Boston College wp2008-18, Center for Retirement Research, revised Dec 2008.

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