Phased Retirement
If you are at or approaching retirement age, ask your employer if they would consider phasing your retirement. Phased or gradual retirement is becoming a popular alternative for employers who don't want to lose valuable workers and workers who don't want to abruptly end their careers.

The first wave of Baby Boomers (those born between 1946 and 1964) "came of retirement age" at the beginning of this year. Your company might be panicking about the talent drain; you might be worried about meeting your costs. If you are like other boomers, you're probably still feeling healthy and vital. You just might not be ready to slow down.

This trend of transitioning into retirement meets the social and economic needs of individuals. This arrangement can be formal or informal. You can agree to work at a reduced number of hours for your employer; you can even offer to train your eventual successor(s). Your paycheck will help you meet your financial burdens or save for that vacation, boat, house, whatever your dream.

A couple things to ask before you enter into this arrangement. If you have a traditional defined benefit plan (DB), how will your pension be affected? Will it be smaller because there are few or no employees making a contribution to the plan? Also, the Internal Revenue Code restricts workers from collecting a DB pension
until you are retired. That means you need to be terminated from employment at least 30 days before you can be rehired.

Does the smaller paycheck affect your health care benefits? Are you not eligible to receive such benefits as a part time worker? Can COBRA be extended to you?

Once you get these questions answered satisfactorily, you can be part of the experienced, skilled older crowd who are beckoned by the conference room and not the golf course and beach.

Learn more about this author, Em Dickinson.
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