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Is the so-called \u201ctraditional\u201d retirement age a relic of workforces past? If a growing number of baby boomers and Gen Xers had it their way, it would be. And it\u2019d be replaced with a more gradual exit from the workforce that gives employees more control over their departure.<\/p>\n
In fact, one in three workers in the U.S. over age 50 desires a phased approach to retirement, according to the 2024 Global Benefits Attitudes Survey<\/a> of 10,000 workers performed by advisory and brokerage firm WTW (formerly Willis Towers Watson). The survey finds 15% of these workers have already started to phase out of work\u2014by reducing hours or responsibilities, for example\u2014and another 19% plan to in the future.<\/p>\n WTW\u2019s research isn\u2019t the first to find that employees are increasingly craving the flexible approach to work and retirement. Earlier this year, Fortune<\/em> covered the phased retirement trend<\/a>, noting its growing popularity is due to recognition across industries that workplaces are changing, and the way companies think about retirement needs to change with it<\/a>. A separate survey<\/a> from Fidelity Investments<\/a> found two-thirds of respondents plan for a gradual approach to leaving the workforce.<\/p>\n A phased retirement lets workers unload some responsibilities or switch to a less intensive career at the same company. While overall pay may decrease depending on the exact terms employees and employers agree to\u2014transitioning from working five days a week to four days a week may come with a proportional pay cut\u2014it allows those who may otherwise have left the workforce altogether to still earn an income and maintain workplace connections.<\/p>\n Employers, meanwhile, can continue to benefit from senior employees\u2019 experience at a lower price point. It also allows for a smoother knowledge transition to the company\u2019s next generation of workers by giving older employees opportunities to offload their expertise on their terms. It can also build loyalty among younger workers, who may be more likely to stick around if they know they\u2019ll be granted the same flexibility later in their careers.<\/p>\n Of course,\u00a0retirement in the U.S. isn\u2019t one size fits all.<\/a> Some workers are happy to clock out and once for all right age 65, while many others never be able to fully retire at all. Some may not have much of a say<\/a> in when they leave the workforce, and still others focus on saving as much as possible so that they can\u00a0quit in their 50s\u2014or even earlier<\/a>. But for those who don\u2019t want to leave their jobs completely but wouldn\u2019t mind taking their foot off the gas, a phased retirement can be an ideal approach.<\/p>\n Financial security and health were the top drivers behind opting into a phased retirement, according to WTW\u2019s survey. And the interest in the trend is growing at a time when 46% of workers age 50 and older expect to work past age 70, the survey finds. Just 30% said the same thing before the pandemic. <\/p>\n Workers who have experienced phased retirements first-hand tell Fortune<\/em><\/a> that not only is it helpful from a financial planning perspective, but from an emotional perspective as well. Though many workers gleefully look forward to retirement in the years prior to leaving, the truth is after decades of working, many people find it difficult to fill their time or be social. A phased retirement can make the transition easier, they say.<\/p>\n The good news for interested employees is that 61% of companies\u2014mostly larger organizations\u2014have some experience in implementing them, according to Principal Financial<\/a> Group\u2019s most recent\u00a0Financial Well-Being Index<\/a>. That said, only 16% of employers have experience with phased retirements on a regular basis.<\/p>\n \u201cFitting work into their life, rather than their life into their work, is really important,\u201d Chris Littlefield, president of retirement and income solutions at Principal, previously told Fortune<\/em>. Companies \u201cneed to start thinking about an intentional offboarding strategy, because people staying somewhere until 65 is going by the wayside.\u201d<\/p>\n<\/div>\nRecommended Newsletter:\u00a0<\/strong>Subscribe to Next to Lead, Fortune\u2019s weekly newsletter offering expert leadership strategies and insights for every stage of your career. Subscribe now<\/a>.<\/div>\n