For many wanting to quit work around 60, phased retirement can be the answer

investmentnews.com:

Even as the notion of phased retirement has become a norm, more people than ever are saying that they don’t plan to work past the age of 62.

Data published this month from the Federal Reserve Bank of New York’s Survey of Consumer Expectations show that just under 46 percent of people expect to work past 62, while over 31 percent think they will remain at jobs past 67. By comparison, figures from the survey published in November 2016 were 58 percent and nearly 39 percent, respectively.

The reality of that goal is questionable for many, though, as the proportion of workers older than 65 has been rising. Figures this week from the Employee Benefit Research Institute show that of the workforce population 55 and up, nearly 30 percent were 65 or older in 2023, up from 23 percent in 2000.

Separate survey data earlier this month from Allianz show that nearly half, 47 percent, of Americans say that their view of retirement is “a slow transition away from full-time work” rather than an abrupt exit from it. Another 38 percent see it as an immediate stop to work, while 15 percent said they don’t envision a future in which they can reduce their working hours or retire.

In emails to InvestmentNews, financial advisors said that phased retirements can make all the difference for some clients. That strategy allows people to delay claiming Social Security and retain health insurance before eligibility for Medicare, they noted. And major non-financial aspects are the benefits of socialization and sense of purpose that can be lacking for those who stop fulltime work altogether.

“We have had many clients phase down into retirement, as well as many more return to partial employment later. Two tech bubble top execs retired at 45 and 50, only