How to Retire Gradually
Retirement doesn't have to be all or nothing. Part-time retirement provides some cash but still gives seniors free time for hobbies and family responsibilities. Workers are becoming much more likely to partially retire before exiting the workforce completely. Among employees born between 1933 and 1937, 45 percent of men and 41 percent of women partially retired after age 50, compared with 33 percent and 25 percent, respectively, 20 years earlier, according to a recent
Negotiate a new schedule.
A few employers, including
Offer to mentor younger workers.
Workers with long job tenures have valuable experience and institutional knowledge that they can pass on to younger workers. "Offer to be a coach or a mentor to the new person coming in," advises Wooten.
Settle on fair pay.
Generally you will be paid less if you work fewer hours and have less responsibility. Discuss what your salary will be in your new role. You may be required to give up perks reserved for full-time employees, such as your office or parking spot.
Watch out for pension problems.
Some pension payouts can be adversely impacted by phased retirement. Find out how your pension amount is calculated and make sure that your lower partial-retirement salary won't reduce your pension. If your pension will be reduced by cutting back to part-time work, you may want to consider keeping the higher pension from your current company and finding a part-time job with a different employer.
Qualify for health insurance.
If you're younger than 65, you probably want to work enough hours to qualify for the company health insurance policy. Some companies will provide benefits to part-time workers. Find out what the minimum requirements are to qualify for health coverage and make sure you work enough hours each week to stay on the policy until you are old enough to qualify for
You can work and claim
Decide what you'll do with your free time.
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Personal Finance - How to Retire Gradually
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