Phased retirement trend gains momentum among over-50s

Alan Roxburgh had always planned to retire at 60. He started working just after his A-levels and figured 40 years sounded long enough. Roxburgh began paying into a pension at age 21 and even contributed his bonuses. “Whether it’s my Scottish heritage or my industry, I’d always been prudent about setting aside money for the future,” he noted. However, when the time came, he didn’t feel ready to stop working, nor did he want to keep the same pace. “Zurich was a dynamic and enjoyable place to work, and I’d been promoted three times in 12 years,” he explains. “But I didn’t want to keep doing that job with the required intensity.” Roxburgh chose a middle ground, joining millions gliding into retirement by balancing their time with health pursuits or hobbies. According to the Office for National Statistics, some 3.6 million people over 50 are working part-time, an increase of 26% in the last decade and 56% since 2003. Analysis by Rest Less, a website for people over 50, found that 40% of people aged 60-64 still work, and 66% of those over 65 work part-time. Data from insurance firm Phoenix Group indicates that 41% of people expect this to be the norm in the next 10 to 25 years, with only 15% expecting retirement to be a hard stop. Roxburgh discussed his desire for change with his boss, resulting in a six-month unpaid sabbatical with flexible working upon return. He immersed himself in tennis, golf, learning French, and gardening during his time off. Upon returning, he reduced his workload to six days a month, drawing on his extensive business knowledge to work on specific projects. Now 62, he commutes to Zurich’s City of London office once a week and spends the rest of his workdays at home. Despite the flexibility, Roxburgh emphasizes the importance of being active around the team.

Phased retirement offers flexible transition

“I think it is really important that you’re quite active around the team, not to justify your existence, but to bring your knowledge and experience,” he explains. This approach, while uncommon among his friends, keeps him engaged and relevant. He’s mindful of his boss’s opinion on when to fully retire, planning a hard stop at 65. Flexible working has become more ingrained since the pandemic, positively affecting retention and recruitment. Research by the Chartered Institute of Personnel and Development found that 39% of businesses in 2023 offered flexible working from day one, compared to 36% in 2021. A large number of over-50s also seek flexible work, with 34% citing caregiving responsibilities and a desire for more personal time. Krysia Chrzanowska, 64, balances nannying jobs, café shifts, and running nature groups. “It’s a bit of a juggle, but I can’t see myself stopping work and as long as I enjoy it, I’ll carry on,” she says. This blend of freelance jobs allows her to wind down easily when the time is right, particularly when grandchildren arrive. Despite a busy work life, August is her quietest month, giving her respite while relying on savings. Chrzanowska acknowledges concerns about covering major expenses as retirement approaches, similar to many. The Pensions and Lifetime Savings Association (PLSA) reported that the proportion of people not on track for even a minimum retirement lifestyle has risen. Advisers suggest saving 10 times one’s average salary into a pension, but many fall short. With increasing life expectancy and changing work dynamics, more over-50s are choosing part-time work as a smoother transition into retirement. This trend reflects a significant shift in how retirement is being redefined in modern times.