Time changes, we evolve, and with the changing times, we need to change and move on. One such major change that everyone comes across in their life is when they retire and have to settle down for a slow life. America, right now, is plagued with a massive labor problem as a lion’s share of the skilled workforce has either retired or is very close to the retirement age.
Consequently, companies are having a tough time. Losing out on individuals with high experience and knowledge is harming their prospects and this is indeed a grave issue. Not just corporations, even individuals are greatly affected when they retire, because they’re cut off from a steady inflow of money and need to depend on their savings. If you’re nearing your retirement age and want to be financially secure, the best way is not to retire at all or opt for phased retirement. How? Find out.
Phased Retirement Is A Win-Win Situation
It’s a pretty rare thing to happen, but this can benefit both sides. In fact, in this situation, you and your employer would be complementing each other. If you have reached the retirement age, yet are willing to work, the employers would have the golden opportunity to retain you at the organization.
This is where the phased retirement concept comes in. In place of taking permanent leave from your job, you can choose to reduce the hours you work, move to a department that doesn’t require you take additional workload, or choose to work on certain days. You can also opt to work from your home. If reports are taken into account, this approach has major benefits attached to it. Companies can retain skilled workforce who can in turn train and mentor the recruits. As far as the employees are concerned, they can add a little more money to their retirement savings, stay physically and mentally fit, and avail all the other benefits.
Are Companies Embracing Phased Retirement?
Most organizations tend to overlook the benefit of retaining a seasoned employee. However, a few companies have been exploring this option of phased retirement and have been benefiting from it.
A recent study reveals that around 77 percent of the employers know that their workers are planning to stick on to their job. However, only 31 percent of them practice the idea of phased retirement. Several other reports have divulged that phased retirement these days isn’t common at all, a fact that doesn’t meet the expectations.
Why Is The Employers’ Approach So Negative?
The biggest factor that prevents an employer from embracing phased retirement is the legal issues involved. There are risks of litigation if the company provides benefits to the workers based on age. Phased retirement mostly offers a range of attractive perks to the employees.
So, it would rather benefit the organization to hire part-time employees and offer them benefits that match their employment rather than dealing with senior citizens whose needs from the business are different? Besides that, there is a management issue as well. If an employee who has opted for phased retirement decides their days, time, and schedule to work, it gets difficult for the manager to get things done efficiently. Moreover, a lot of employers aren’t quite interested in providing health insurance to individuals who are contributing half of what they used to while they were permanent.
How To Convince Your Employer?
In case you are among two-thirds of the workforce that is willing to take up phased retirement, you would need to convince your employer and that will require some salesmanship from you.
First, you need to come up with a convincing pitch to tell your employee why you are a valuable resource and how this phased retirement would help the organization in the long-run. Second, you might have to upskill yourself and find a job that does not require you to be there full-time while earning you a substantial income. You might also look for jobs that would not involve a lot of additional training.
Though phased retirement as common as it should be, employers are slowly realizing its benefits. However, you need to make your employers understand how efficient you can be despite reaching the retirement age. Your contribution during phased retirement would eventually speak for itself.