For decades, retirement was imagined as an on-off switch: one day you worked, the next you didn’t. But more people today are choosing a dimmer switch instead — easing gradually into retirement through phased work, consulting, or part-time roles.
Why the shift? Partly economics, partly purpose. Research from the Transamerica Center shows that nearly 55% of workers now envision some form of continued work past traditional retirement age, not just for income but for identity, social connection, and intellectual engagement.
From a planning standpoint, phased retirement offers compelling advantages: it reduces withdrawal pressure on portfolios, stretches employer benefits longer, and provides a buffer against sequence-of-returns risk. It also gives retirees space to test what “retired life” actually feels like — adjusting expenses, routines, and goals without the jarring financial or emotional leap.
Why this matters?
Retirement isn’t just a financial milestone; it’s a lifestyle transition. Embracing phased pathways can help preserve not just your assets, but your sense of purpose — making the next chapter more secure and deeply fulfilling.