Why Companies Should Support Phased Retirements

Most U.S. businesses are overwhelmingly opposed to phased retirements, forcing older workers to either work full-time or not work at all, reports The Motley Fool . Although a growing number of U.S. workers are opting to work longer, they cannot manage the rigorous schedules they once could as they age, thus reducing their productivity and risking their health if they try to sustain physical levels they can no longer uphold. However, older workers offer significant value that younger peers do not have, often because they have the wisdom and experience to provide guidance during periods of prosperity and turbulence. They also are more likely to have entrenched relationships with vendors and partners that can help companies prosper. Phased retirements allow older employees to scale back their hours over time and enable a less bumpy transition on both sides, with older workers continuing to earn money while their employers get ample notice to onboard and train new hires. With phased retirements, firms also can maintain a level of goodwill with long-serving employees, who might agree after retirement to consult on an as-needed basis, adding to employers' sense of security.