What is phased retirement?

Gradually decreasing hours is the most desired way of phased retiring for current workers, particularly for Gen X, millennials, and Gen Z. Some workers transition to retirement slowly, first working four days a week, then three days, and then on a contract basis. Others may move to a different team within the company that's less demanding or carries fewer responsibilities. An employee in sales, for example, might transition to managing client relationships rather than chasing new leads.

Personal FinanceRetirement

Boomers and Gen Xers are betting on a retirement ‘mega-trend’ that could transform the workforce—and when employees leave their jobs

BYAlicia Adamczyk

Mature business woman smiling and using a mobile phone in her office

Rethinking retirement can benefit both employees and employers.

Julia Amaral—Getty Images