A 2016 study from the TransAmerica Center for Retirement Studies found that nearly three-quarters of employers polled at 1,800 companies of all sizes reported that many of their employees expect to work past age 65 or do not plan to retire at all. While four of the five companies surveyed said they plan to support senior employees who want to continue working, just four in 10 of the firms offer flexible schedules. Fewer than a third allow workers to transition from full-time to part-time work or to a less demanding position.
"Phased retirement has no succinct definition," AARP noted in a white paper on the subject. "The term phased retirement often refers to a broad range of flexible retirement arrangements, both informal practices, and formal workplace policies, which allow employees are approaching the normal retirement age to reduce the hours worked or work for their employers in a different capacity after retirement."
The AARP report cited these factors that are pushing workers to retire later:
Changes in Social Security have made it easier for recipients to continue working after reaching full retirement age without losing their benefits.
Americans are living longer, which means that retirees will need greater financial resources to support themselves.
In 2020, Social Security in the USA allows for $18,240 of earned income per individual under the full retirement age before affecting social security benefits for those who have not reached their full retirement age. The limit for 2021 increases to $18,960. Note the limit increases in the year in which you attain your full retirement age.
Phased retirement arrangements help businesses "maintain continuity of essential business operations by retaining key workers whose positions may be difficult to fill; enhance productivity by addressing the need for work-life balance; and reduce costs associated with hiring and training new employees."
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