Phased Retirement: Insights from U.S. Workforce Survey
![Phased Retirement: Insights from U.S. Workforce Survey](https://investorshangout.com/images/blog/investors-hangout-newswire.jpg)
Phased Retirement Trends Among Older Workers
While millions of older working Americans are delaying retirement amid financial concerns, some are choosing to phase into retirement. This trend has emerged from recent survey research conducted by WTW (NASDAQ: WTW), a leading global advisory and solutions company.
Survey Findings on Phased Retirement
The 2024 Global Benefits Attitudes Survey revealed that one in three workers aged 50 and older are either already phasing into retirement (15%) by reducing their work hours or job responsibilities or wish to do so (19%). Many of these employees plan to transition over an extended period; those starting at age 59 anticipate working for an additional nine years. Similar findings apply to those wishing to phase into retirement at an older age.
Decisions Driving Phased Retirement
Most workers currently phasing into retirement have adjusted their hours (61%) or responsibilities (41%). Fewer are seeking different roles or job conditions. The primary reasons influencing their retirement timing are financial security (76%), health (50%), and the desire for more family or leisure time (45%).
Expectation of Continued Employment
Nearly half (46%) of older workers expect to work past age 70, a significant increase from previous years. Additionally, 79% admit they aren't saving enough for retirement, and only 52% feel they are on the right financial track for retirement.
Employer's Role in Phased Retirement
Jonathan Sterbanz, senior director of Retirement at WTW, stated that phased retirement benefits both employees and employers. By working fewer hours, employees can manage their financial and emotional transitions. Employers benefit from retaining experienced workers who can mentor newer employees. However, only 30% of respondents believe their employers effectively utilize the skills of older employees.
The Importance of Retirement Plans
The survey indicates that 66% of employees find employer-provided retirement plans crucial. Additionally, 72% consider these plans their primary savings method. Over half (55%) cite their retirement plan as a key reason to remain with their current employer, an increase from 48% in 2017.
Challenges for Employers
As employees seek flexibility, employers face challenges in meeting both current and long-term financial needs. Defined contribution plans can aid in this regard, helping to balance employee needs with organizational goals. Options like pooled employer plans and lifetime income solutions are emerging as vital tools for enhancing retirement benefits.
Overview of the Study
The 2024 Global Benefits Attitudes Survey was carried out from January to March of this year. It included responses from 10,000 U.S. employees in medium and large private sector firms, covering various industries.
About WTW
At WTW (NASDAQ: WTW), we provide data-driven, insightful solutions related to people, risk, and capital, leveraging global expertise to assist organizations in improving strategies, resilience, and workforce motivation for maximum performance.
Frequently Asked Questions
What is phased retirement?
Phased retirement allows employees, especially those nearing retirement age, to gradually reduce their working hours or responsibilities while transitioning into full retirement.
What percentage of workers want to phase into retirement?
According to the survey, 34% of workers aged 50 and older either have already begun phasing into retirement or desire to do so.
What are the main reasons employees phase into retirement?
The top reasons include financial security (76%), health (50%), and the desire for more family or leisure time (45%).
How important are employer-provided retirement plans?
The survey indicates that 66% of employees value their employer-provided retirement plans highly, viewing them as critical for retirement savings.
What role do employers play in phased retirement?
Employers can support phased retirement by offering flexible working arrangements and utilizing the skills of older employees to mentor younger workers, thus benefiting the entire organization.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/