Retirement doesn’t have to be a drastic cut from a full-time job to no job at all.

You may still want to work, just not as much — especially if you aren’t financially ready to retire.

The gradual reduction of hours known as “phased retirement” could be the answer, and it can be achieved either through an official policy at your employer or in a more informal fashion.

In fact, 45% of U.S. workers envision reducing their work hours in a phased transition into retirement, according to the latest Transamerica Retirement Survey of Workers. The survey, released in May 2020, was conducted by The Harris Poll from Nov. 6 to Dec. 27, 2019 among a nationally representative sample of 5,277 workers.

Meanwhile, the number of employers offering phased retirement is slowly increasing, a survey by the Society for Human Resource Management found. Fully 15% of organizations offer some employees the option through an informal program, while 6% have a formal program. However, employers prefer to limit it to high-performers and those with in-demand skills, according to the Society.

The idea of working past the typical retirement age has gained some steam as people live longer and employer pension plans have dwindled, said Steve Parrish, co-director of the Center for Retirement Income at The American College of Financial Services.

The Covid-19 pandemic has also resulted in more flexibility for employees.

“People are starting to say maybe it is a slow-down process and eventually full retirement,” Parrish said.

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