The picture of retirement is changing. Today's older adults are more active and adept than ever, and generally aren't settling down and retiring at age 65 anymore. Not only are they wanting to remain in the workforce longer, but employers are also reluctant to lose them. According to the Society for Human Resources Management, 54 percent of companies say that they're concerned about losing the skills and talent of retiring workers.
Because of this, many companies are creating phased retirement plans that allow older employees to work fewer hours in their current position, or take on part time jobs in an effort to gradually move toward retirement. This allows the companies to retain the talent of the older employees while training newer, younger individuals, and the older adults get the satisfaction of remaining in a place where their skills and expertise are valued, while they prepare for retirement.
Even if the company doesn't specifically have a phased retirement plan, you can still follow a similar path by creating a gradual retirement plan on your own. Either way, following the below steps can help make your transition to retirement smoother and easier on you and your loved ones.
1. Get As Much Info As You Can
Talk to other people - both friends and people in you professional field - who are in similar situations to you or that have already retired in a similar way, and pick their brains. Then consider ways that you can bring your specific areas of expertise and particular projects into a scaled down job description. Map out what your new job will entail, and make sure it makes sense to you and your company.
2. Flexibility Is Crucial
There isn't one way to make a phased or gradual retirement work. Be open to creative ideas and don't be stuck on the idea that a part-time job is the only step. Consider working on a per-project basis or transitioning to freelance so that you are able to work from home and set your own hours.
3. Stay Current
It is important that you keep your skills and marketable assets current so that your employer is more likely to keep you on. This could mean attending classes or conferences outside of the workplace to stay up-to-date, or getting the latest certification or learning the newest software in your area.
4. Consider Your Wallet
It is pretty clear that your salary will be reduced when you scale down your work, but be sure to consider the other implications. Be aware of the changes that could happen to your retirement, medical and social security benefits when you are no longer a full time employee, as your coverage could be limited.
5. Find A Balance Between Work And Home
With phased out retirement, finding the right balance between holding on and letting go can sometimes be difficult. Even though it isn't as drastic as retiring all at once, it is still a big change and it is important that you start to develop skills and hobbies at home so that you feel fulfilled both at work and at home.
