The concept of phased retirement is becoming a popular approach for baby boomers who want to ease into retirement while maintaining some form of work-life balance. As opposed to a hard-stop retirement, where one completely leaves the workforce, phased retirement allows individuals to gradually reduce their work hours and responsibilities over time. This approach can provide various benefits for both employees and employers.
Here are some insights from three baby boomers who have chosen different paths towards phased retirement:
1. George Cavedon (Age 73) from New Hampshire:
- After an early retirement in his fifties, Cavedon missed working and decided to return to the workforce at a small marketing firm. He's been there for 18 years and enjoys the social interactions and staying sharp through work.
- Cavedon appreciates the flexibility of his current job, as he can adjust his hours to suit his lifestyle. He believes that working keeps him active and engaged and plans to scale back to three days a week in the future.
2. Renee Stanton (Age 61) from New Jersey:
- Stanton has worked in IT-related roles her entire career and seeks a phased retirement that allows her to spend more time on her passions, such as skiing and sailing, as well as with her family.
- She plans to shift to a contractor role, giving her more control over her schedule and allowing her pensions and Social Security benefits to continue to grow. Stanton emphasizes the need for flexibility to pursue leisure activities and family time.
3. Joy W. (Age 66) from New York:
- Joy W. switched careers in her fifties and now works as a psychotherapist. Although she enjoys her work and is financially secure, she has started to scale back her work schedule.
- Joy intends to continue working part-time, potentially through volunteer work, as it keeps her engaged and contributes to the community. Her decision is also informed by her clients' experiences, many of whom have regrets about retiring too soon.
Overall, phased retirement allows individuals to tailor their retirement transition according to their personal and financial needs. By gradually reducing their workload, they can stay active, engaged, and financially secure while enjoying the benefits of partial retirement.
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