United Kingdom: Survey Finds Over-50s Looking to Keep Working in Flexible Retirement

According to a survey conducted by Saga, around 24% of people in the United Kingdom over 50 have rejected full retirement in favor of continuing with some paid work, as well as carrying out voluntary work and having more leisure time. In addition, according to the Saga Manifesto, which advocates the abolition of the default retirement age, almost 97% of over-50s reject the idea of working doggedly until state retirement age and greatly prefer to scale back working hours before this time.

Saga predicts that there will be a 50% increase in the number of people who take this approach to retirement during the next 10 years, with around three million over-50s combining work and volunteering by 2019. People will typically start scaling back their working hours when they are 57, with the average person carrying out 27 hours a week of paid work and eight hours of voluntary work.

Sources: Saga Media Release (January 11, 2010); UK Press Association "Over 50s taking gradual retirement" (January 7, 2010)

Survey: Baby Boomers in United Kingdom Shifting Attitudes towards Retirement

A survey conducted by Standard Life shows a transformation in attitudes to retirement amongst the baby boomer generation. As presented to a Reform debate on "The Death of Retirement," the research found, among other things, that rather than retirement being when they stop work, 39.3% of adults in the United Kingdom (rising to 42% of 46-65 year olds who are wealthier) want to continue to be involved at work but on their own terms, whereas only 15% of their parent's generation wanted to stay in some kind of work at retirement.

Andrew Haldenby, Director, REFORM commented: "This debate shows there is clear support for the idea of an active retirement and the fact that people need to take more control. Government needs to do more to encourage that." Nigel Waterson MP, Shadow Pensions Minister said: "Retirement should be less of an event and more of a process. We need to move away from the notion of pensions towards long term savings. It's all about flexible retirement."

Source: Standard Life Press Release (February 4, 2009)

Research: Why is Retirement so Abrupt?

In an Institute of Economic Affairs discussion paper, John S. Heywood and W. Stanley Siebert examine the labour market for older workers and ask why retirement is so abrupt and what can we do about it. They focus on the United Kingdom's employment equality (age) regulations and whether they are likely to help the functioning of the market for older workers.

In "Understanding the Labour Market for Older Workers", the authors determined that the abuptness of retirement is due, historically, to the fact that in most countries it has been difficult to work and receive a pension. Pension rules discourage on-going relationships with existing employers, despite the fact that those employers have already paid the fixed costs associated with hiring and training and it was to those firms that the workers are most valuable. The find, however, that the situation has changed for the better, at least in the UK.

Source: Institute of Economic Affairs Discussion Paper No. 23 Abstract (November 30, 2008)

United Kingdom: Government Reports on Flexible Retirement, Seeks More Comments

The United Kingdom's Department for Work and Pensions (DWP) has released the results of its consultation on flexible retirement and, in turn, has announced a new consultation to explore this issue further. According to DWP, the "most obvious conclusion from this exercise" is that the age discrimination regulations "continue to cause some unease and uncertainty for employers, trustees, professional advisers, members and their representatives alike."

According to DWP, the age rules were intended to combat the worst aspects of discrimination, and "it would be counterproductive to introduce a regulatory regime that subverted the Government’s wider policy of ensuring that older people have opportunities to carry on working and earning towards retirement." Accordingly, DWP wants to promote fairness, not set impossible standards. Thus, DWP now seeks "to consult on alternative options for a further exemption in respect of flexible retirement arrangements to mitigate any disincentive effect." Specifically, DWP is asking, among other things:

Question 1: The definition of ‘flexible retirement’ excludes members continuing in the same grade with the same hours, but who take all or part of their age-related benefits. Do you (or employers or schemes you advise) enable workers to continue to work after NPA in the same grade and with the same hours whilst taking their age related benefits? If so, does the practice cause significant problems for the scheme and are you (or any of the employers or schemes you advise) considering withdrawing the policy? If not, please explain why the practice has not been adopted.

Question 4: We welcome further evidence to determine the extent to which the Age Regulations deter employers from offering flexible retirement arrangements. Do you (or the employers or schemes you advise) currently provide flexible retirement arrangements to staff? If so, are you (or the employers or schemes you advise) considering withdrawing or limiting those arrangements? Why? If you (or the employers or schemes you advise) do not offer flexible retirement arrangements, what is the reason for this? Would an exemption from the Age Regulations lead you (or the employers or schemes you advise) to change your current practice?

Sources: Department for Work and Pensions "Flexible Retirement and Pension Provision" (December 16, 2008); Professional Pensions "DWP launches age discrimination consultation" (December 17, 2008)

Research Study Pushes for Cultural Changes To Increase Workplace Flexibility for Older Workers

An AARP Public Policy Institute Insight on the Issues report focuses on the availability of and barriers to flexible work options, with a particular focus on older workers and phased retirement. According to the Making Work More Flexible: Opportunities and Evidence, prepared by Melissa A. Hardy of The Pennsylvania State University, many employers remain skeptical of flexible work options, despite growing evidence that they can benefit both employers and employees. Among other things, these employers fear that labor costs, output, or administrative efficiency will be unfavorably affected.

Among other things, the report looks at phased retirement, finding that while older workers express considerable interest in scaling back their work hours prior to full retirement, and many analysts and older worker advocates contend that such work options could prolong working life, relatively few workers have access to formal phased retirement options.

Source: AARP Research Report (November 2008)

United States: Older Workers Labor Participation Rates Examined

The Congressional Research Service has updated its research report on "Older Workers: Employment and Retirement Trends" to reflect census data suggesting that a trend of reduced participation in the labor force by older workers could affect economic growth. However, the report also notes that benefit changes may encourage higher participation rates.

Specifically, the data shows that while the number of people between the ages of 55 and 64 will grow by about 11 million between 2005 and 2025, the number of people who are 25 to 54 years old will grow by only 5 million. With respect to labor force participation, in 2007, 91% of men and 75% of women aged 25 to 54 participated in the labor force, but just 70% of men and 58% of women aged 55 to 64 were either working or looking for work.

On the other hand, the report notes that the rate of employment among persons age 55 and older is influenced by general economic conditions, eligibility for Social Security benefits, the availability of health insurance, and the prevalence and design of employer-sponsored pensions. Thus, participation rates among these older workers may be affected by the trend away from defined-benefit pension plans that offer a monthly annuity for life to defined contribution plans that typically pay a lump-sum benefit. In additin, the declining percentage of employers that offer retiree health insurance may result in more people continuing to work until they are eligible for Medicare at 65.

Source: Congressional Research Service Summary (September 15, 2008)

Survey: More Companies Are Considering Implementing Phased Retirement Programs

A Hewitt Associates survey of more than 140 mid-size and large employers has found that 55% have already evaluated the impact that potential retirements could have on their organization and 61% have developed or will develop special programs to retain targeted, near-retirement employees. Even though only 21% believe that phased retirement is critical to their company's human resources strategy today, 61% believe so when looking ahead 5 years.

"With the rising tide of boomer retirees, employers will be losing key talent at a time when attracting and retaining skilled workers will be more important than ever," explained Allen Steinberg, a principal at Hewitt Associates. "At the same time, rising medical costs, lengthening life spans and the declining prevalence of traditional pension and retiree medical benefits mean that employees will either have to work longer, save more or live with significantly less than they are accustomed to. As these trends converge, we believe phased retirement programs will continue to become more attractive options for both employers and employees—they provide employers with new ways to retain critical talent and, at the same time, help employees meet their needs."

In addition, the survey finds that 72% of employers said that retaining the experience, knowledge and skills of older workers was the most important benefit to them in offering phased retirement programs. However, 65% said that offering part-time employment (on a year-round basis) represented one of the most effective ways of retaining near-retirement workers.

In addition to focusing on retention, 45% of the employers indicated they currently have policies in place that limit the ability to rehire retirees, but 46 % said they were likely to review their rehiring policies in the future.

Source: Hewitt Associates News Release (July 30, 2008)

Commentary: Proposals to Change U.S. Benefits Laws to Account for Worker Longevity Increases

John Turner, coeditor of "Work Options for Older Americans", has written an article on "Work Options for Older Americans: Employee Benefits for the Era of Living Longer" published in the Third Quarter 2008 issue of Benefits Quarterly. According to Turner, "[m]any of our social policies and employee benefit policies were designed for an era when people had shorter life expectancy," so that "[w]ith the demographic changes occurring, it is time to reexamine those policies to fit the realities of the new demographic era of living longer."

Public policy should provide older people with more choices, rather than fewer. Work effort by the elderly that is all "push" (due to financial need) and no "pull" (due to attractive jobs) is not socially acceptable. Thus, an increase in labor force participation by the elderly that is motivated mainly by a drop in their reservation wages (the minimum wage at which they are willing to work) because of decreases in pension income would not be an acceptable development. Much more acceptable is the idea that workers who may have to supplement their pensions are also induced to work because of attractive wages, employee benefits, flexible work hours or the nonpecuniary aspects of work. Some of the attractive nonpecuniary aspects of work for older people include socialization, structure to the day and self-esteem. Others include shorter hours, greater vacations and greater flexibility in work schedules.

Among other things, Turner suggests that, since it is difficult for workers to collect a pension while phasing out work, the government could take a proactive stance towards flexible employment and provide guidance to employers, who are chary of experimenting under threat of losing their tax deductions. Another suggestion, reflective of increased longevity, to help encourage defined benefit plans, is to allow employers to index initial benefits received at retirement to increases in life expectancy.

Source: Benefits Quarterly "Work Options for Older Americans: Employee Benefits for the Era of Living Longer" (July 31, 2008)

Canada: Survey Suggests Quebec Workers' Retirement Plans Not in Sync with Employer Needs for Older Workers

Even though organizations are facing labor shortages, 38% of Québec workers say they plan to retire before age 60, and 61% plan to retire between the ages of 55 and 64. These are some of results of a survey conducted by the Centre de Recherche sur l'Opinion Publique (CROP) for the Ordre des CRHA et CRIA du Québec (ORHRI). The survey showed that 15% of workers plan to retire at 65 to 69, 5% at 70 or older, and 5% with no plans to retire.

“In today’s environment, older workers represent a labour pool that employers can no longer do without. That’s why it’s crucial to review management practices to encourage willing pre-retirees to stay on the job as long as possible. Organizations need their valuable expertise,” explained Florent Francoeur, CHRP, Ordre President and CEO.

Workers were also asked about phased retirement, and 53% favored phased retirement, versus 41% who preferred complete retirement.

“The fact that only half the workers are considering phased retirement is of some concern. Yet people are now healthier and living longer than previous generations. So we have to create conditions to increase the numbers of workers who opt for phased retirement. For example, we could adjust benefits and compensation policies, and reorganize work within organizations,” added Francoeur.

Source: Ordre des CRHA et CRIA du Québec Press Release (May 22, 2008)

Canada: Survey Suggests Health Care Benefits Are Leading Enticement for Older Workers

According to a recent poll of Canadians over the age of 55, health assurances are the best thing an employer can offer older workers to keep them in the workplace. Specifically, Ipsos Reid reports that in a poll it conducted on behalf of Royal Bank of Canada, 60% of those surveyed said that extended health care benefits are the most important factor (top three mentions) in deciding to stay in the workforce. Trailing health care were flexible work hours (47%), having a guaranteed salary (34%), and phasing in the retirement process (24%).

With respect to flexible hours, the general consensus of those surveyed was a workweek running from Tuesday to Thursday, working nine to noon each day. In addition, workers would want an average of 6.4 weeks of vacation per year.

The survey also found that over 54% say they plan on working with their current employer past the age of 65, and, of those, 26% plan on working full-time for as long as possible, while another 36% would like to work full-time for a few years, before scaling back to part-time work.

Source: Ipsos Press Release (April 15, 2008)

United Kingdom: DWP Study Shows Retirees ' Unease at Retirement

The Department for Work and Pensions (DWP) reports that less than half of Britons chose the word “happy” to describe how they felt on the first day of retirement: "evidence the traditional sudden stop approach no longer works for many people." According to the research conducted by Ipsos MORI, while 48% were happy and 31% relaxed, almost one in ten reported being sad (11%), anxious (8%), or lost (8%).

Pensions Minister Mike O’Brien commented:

The idea that one day you work and the next you stop can be a shock to the system. These findings challenge the traditional "one size fits all" approach to retirement. Many of today’s older workers are rejecting the cliff edge between work and retirement in favour of a gradual step down. And employers should help them to do this.

Gordon Lishman, Director General of Age Concern, responded in decrying the "ultimate 'cliff edge'" of the mandatory retirement age of 65 and said The "government must abolish this discriminatory barrier if it is serious in wanting to help older people to continue working." Charles Cotton, Reward Adviser at the CIPD, was reported as responding: "Both our own research and the report published today from the DWP show that people are increasingly eager to work past the default retirement age, for social, personal as well as financial reasons."

Sources: Department for Work and Pensions Press Release (April 8, 2008); Fair Investment Company "Pension and other worries tarnish retirement" (April 8, 2008); Age Concern Response (April 8, 2008); TrainingZone.com "New research strengthens case for older workers" (April 8, 2008)

Phased Retirement: Employers Operating in the Dark?

Writing in Workforce Magazine, Michelle V. Rafter reports that many companies are implementing flexible workplace initiatives to hang on to valuable older employees. However, one attractive option--implementing a formal phased retirement program--is turning out to be easier to talk about than to do: U.S. pension reform laws passed in 2006 to ease restrictions on retirement-age employees who wanted to work a reduced schedule but still be able to collect payouts from defined-benefit pension plans have raised more questions than they’ve answered.

Accordingly, she writes, "At many companies, that’s put formal phased retirement programs on the back burner. Until things get sorted out, companies appear content to stick with informal arrangements." Among these informal arrangements are:

• ad hoc deals with executives or other employees who are close to retirement age and valued because of their position, experience, skills or customer relationships, whereby, if the workers are over 62, they can remain working in some capacity and start collecting pension benefits.
• encouraging employees to retire completely, wait for a period of months to pass, and then return as independent contractors, allowing workers to collect their full pension benefits and the company to retain their brainpower.
• contracting with contingent worker organizations to manage retiree workers on their behalf.

Source: Workforce Magazine "Pension and Retirement Benefits: Phased Retirement--Firms Wing It" (February 4, 2008)

Commmentary: Growth and Pitfalls of Second Careers

In an interview for The New York Times with Marc Freeman, author of Encore: Finding Work that Matters in the Second Half of Life, Marci Alboher explores with Freeman "the growing phenomenon of encore careers, the obstacles facing older workers, and why it is so hard to come up with language to describe this new period of work and life."

Among other things, Freeman tells how, while society is set up to make retirement happen seamlessly, individuals are often on their own when it comes to launching a significant second career, "even though we desperately need people to move into this direction." Furthermore, he would like to see older workers avoid spending decades in "bridge jobs" with Home Depot and the like and believes that employers "need to recognize, particularly those facing talent shortages, that there is more than one place to look when filling these gaps."

Source: The New York Times "Discovering Second Acts In Sustained Working Lives" (February 11, 2008)

Survey: Ernst & Young Suggests Employers Not Ready to Face an Aging Workforce

Ernst & Young has released a follow-up to its 2006 report on the aging workforce. In this new survey--"Aging Workforce Survey: Challenges and Responses--An Ongoing Review", employers in the United States are depicted as remaining unprepared for the looming brain drain stemming from the aging of the “baby boomer” generation, "leaving themselves open to economic and productivity challenges if strategic plans are not put in place over the next five years."

Using response from human resource (HR) executives from Fortune 1000 companies, the survey confirms that a gap in strategy exists across organizations when preparing for and developing programs to meet the demands of this population as it nears retirement. The findings also suggest that employers may be experiencing a disconnect with this demographic in areas such as succession planning and employee benefits programs. For example, 41% say middle management level employees will be most affected by the brain drain; however, of those with formal succession-planning programs in place, 75% are focused on monitoring senior management only.

Among other key findings in the survey:

• Although 44% say it would be desirable to have senior management stay beyond the normal retirement age, 60% say current programs are “neutral” in terms of encouraging or discouraging retirement at a certain age;
• only 29% are considering phased retirement programs (with only 9% having such programs in place);
• 39% agree health care is the main driver in one’s decision to retire, but 54% are considering increasing employee co-pays that which could lead to the loss of talent.

Ernst & Young LLP also hosted a Thought Center Webcast with a panel discussion on the aging workforce and whether Corporate America is prepared to deal with the challenges arising from the impending retirement of the "baby boomer" generation. The webcast will be archived on their website.

Source: Ernst & Young News Release (October 22, 2007)

United Kingdom: Government Seeks Feedback on Flexible Retirement

The United Kingdom's Department for Work and Pensions has issued a consultation, seeking views on key issues raised by industry since the implementation the pension provision of the Employment Equality (Age) Regulations in December 2006, particular application of the regulations in relation to flexible retirement and pension provision. The Department believes that there is still confusion as to whether the age rules can allow more flexible retirement.

The issue is especially important, since the government considers flexible retirement key to meeting the challenges of an ageing population by providing choices and opportunities for older people to plan how they want to stop working. "Increasing the incentives to work for longer will give individuals the opportunity to plan for a longer working life and save towards a more financially secure retirement." However, because of the age rules, "[e]mployers and the pensions industry may be reluctant to implement change without case law and therefore are cautious in proposing modifications to a scheme which could be considered discriminatory or which cannot be objectively justified if challenged."

Thus, in the consulation, the Department seeks responses to, among other questions:

Q1. We would welcome your views on what you believe might constitute direct or indirect age discrimination in relation to flexible retirement.

Q2. It would also be helpful if you could indicate practices which you believe should be exempt or which could be objectively justified.

Source: Department for Work and Pensions "Flexible Retirement & Pension Provision" Consultation Document (October 10, 2007)

Conference Board Report Suggests that Phased Retirement is Becoming a More Viable Option

A report released by The Conference Board suggests that recent U.S. legislation means that more companies will be able to use phased retirement to retain valuable skills and knowledge while providing mature workers with an alternative to the all-or-nothing approach to retirement. While the IRS has yet to issue regulations under the Pension Protection Act of 2006, the Act opens up new options for companies that sponsor defined-retirement benefit plans, lifting restrictions that forbid employers from paying retirement benefits until an employee had terminated employment or had reached the plan's normal retirement age.

According to Anna M. Rappaport and Mary B. Young, the authors of "Phased Retirement after the Pension Protection Act", employers should first define the talent challenges that phased retirement might help solve and then should evaluate which of the many options for phased retirement would be most effective. Figuring out the compensation and benefits should be the final step.

Phased retirement can be any work arrangement that falls somewhere in between full-time retirement and working full-time. Formal phased retirement is still relatively rare, partly because employers are skittish about running afoul of pension laws, and partly because companies are reluctant to include all of their mature staff in a phased retirement situation.

While the report is available for purchase, the Conference Board press release provides further detail into the kind of decision-making process a company should adopt when considering the possibilities of implementing phased retirement.

Source: Conference Board Press Release (March 28, 2007)

United Kingdom: Flexibile Retirement and Pensions

Age Positive has issued a news release stating that, since the pension provision of the United Kingdom age regulations came into force on 1 December 2006, concerns have been expressed with regards to flexible retirement not being adequately covered by the regulations or accompanying guidance. In particular, points have been raised about the ability of employers and schemes to alter accrual or payment in the light of working beyond normal retirement age. According to the Department for Work and Pensions (DWP), this is a complex and developing area and it intends to examine whether it is possible to provide greater certainty where flexible retirement and pensions is concerned.

In conjunction, Age Positive has published a report--Flexible Retirement: A Snapshot of Employer Practices 2006--produced for DWP by Employers Forum on Age (EFA) and IFF Research Ltd. The findings include a practical guide (a checklist) for employers who may wish to take advantage of the rule changes in order to deliver flexible retirement options for their employees. In addition, it the report includes a small number of case studies illustrating how some large employers developed (or are in the process of developing) flexible retirement policies.

Source: Age Positive News Release (January 17, 2007)

Survey: Vanguard Research Shows Continued Work Figures Large in Retirement Planning

The Vanguard Group's The Vanguard Center for Retirement Research has published "Six Paths to Retirement", which highlights the importance of financial preparation and saving in determining the transition from work to retirement: While those with the financial resources look forward to possible paths with a flexible work arrangement or no work at all, for those who are short on retirement savings, work in some form will play an important role in helping close the savings gap.

The report is based on both a quantitative survey of some 2,500 adults age 40 to 69 and on in depth interviews with 38 men and women, age
40 to 75. From the larger survey, Vanguard reports 6 in 10 Americans say that their retirement plans include part-time or full-time work, with "downshifting" being a common strategy for making the transition from work to retirement--that is, older workers shift to less stressful or simpler jobs before stopping work entirely. From both parts of the research, Vanguard identified six paths to retirement among Americans 55 and older:

• Early retirees: 29% retired early. In most cases, this group had pensions and high savings balances.
• Work and play: 12% left full-time work in their 50s, but immediately set up their own companies or took on high-level, part-time jobs. They largely enjoy their work and want to stay active.
• Still Working: 35% of workers moved to part-time or self-employment in their 60s. They tend to have lower financial resources, and often lack a pension.
• Returnees: 5% stop working, typically in their 50s, and then are forced to return to the work force, sometimes because of a financial shock like the death of a spouse.
• Spouse's retirement: 9%. Often married women in excellent health, they follow their husband into retirement in their 40s and 50s.
• Never retire: 10%. The majority say they do it to meet basic living expenses.

Source: News Release The Vanguard Center for Retirement Research (January 17, 2007); Associated Press "Retirees Work for Fun or Necessity" (January 18, 2007)

Role of Employers in Discussing Retirement Options with Employees

In an article in Employee Benefit News, Lydell C. Bridgeford discusses the pros and cons about how employers talk about retirement education programs, especially ones addressing the financial pros and cons to working past age 62 to 67. While older workers thinking about working past the required retirement age must balance the rewards with the penalties and need information about the costs and benefits, there is a real question about whether employers should become more active in offering education programs on delayed retirement.

[John] Young [ executive vice president of sales and marketing at Michigan-based Freedom One Financial Group] observes that employers tend to leave retirement financial education up to outside professionals whom workers have already chosen, or a potential service provider of their 401(k) program that includes retirement education planning as part of the basic service.

However, it can be in the employer's interest to help with the education, especailly as younger workers become relatively more scarce and employers increasingly want to retain older workers.

Source: Employee Benefit News "Educating workers about delayed retirement" (November 2006)

AARP Releases Research on Interest in Phased Retirement

Nearly 40% of age 50+ workers would be interested in participating in phased retirement according to research by AARP Knowledge Management. According to S. Kathi Brown, the report-- "Attitudes of Individuals 50 and Older Toward Phased Retirement"--the opportunity to work a reduced schedule prior to full retirement while simultaneously collecting pension benefits has significant appeal. "Of workers who expressed interest in phased retirement, nearly four in five expect that the availability of such a plan would encourage them to work past their expected retirement age. Although respondents value the ability to work a reduced schedule while collecting some of their pension, they are wary of the possibility that phased retirement might reduce their final pension benefit."

Source: Research Report AARP Knowledge Management (March 2005)

Phased Retirement: Not All About Retaining Income and Reducing Stress

With some of the institutional barriers that once prevented phased retirement disappearing, Kaja Whitehouse, of The Wall Street Journal, finds that even though "older workers want alternatives to traditional retirement, and many employers want to find ways to keep them working," serious impediments remain. Most importantly, for employees, "reducing work hours not only will result in lower pay, but also could eliminate access to health care, reduce pension distributions and take away other important benefits." In addition, according to a 2003 Cornell University study, most workers who want phased retirement must first obtain permission from their bosses, and Robert Hutchens, the study's author, suggests that few employers will offer formal programs that benefit all older workers. "The future will be a continuation of what's going on currently. . . There's a desire to make sure that, if there's going to be a phased retirement, it's going to be for the right person and for the right job."

Source: "Older workers find happy medium" Baltimore Sun (April 4, 2005)

Companies Worry About Potential Liabilities from Phased Retirement Plans

While many businesses welcome the chance to bolster their workforce as a result of federal government plans to ease phased retirement, they are worried about potential liability. According to a recent Employee Benefit News QuickPoll, 31% of respondents favored phased retirement, while 13% opposed it for fear of age-discrimination lawsuits, and 29% had mixed feelings. An article by Leah Carlson quotes Sylvester Schieber, vice president for research and information at the consulting firm Watson Wyatt, as saying that employers "have been agitating for some time that they be given greater flexibility" in making payments to people in partial retirement, but also that there "are legal concerns that the IRS is going to come back and perceive that somehow we're trying to skirt the suspension of benefits in the accrual rules under the pension plan, and that we might be discriminatory in terms of how we're doing this."

Source: "Phased retirement regulations draw mixed reaction from firms" Employee Benefit News (March 2005)

Growing Number of Older Workers Going through "Phased Retirement"

In an article by By Harry Wessel, The Orlando Sentinel, three workers are profiled who are part of the trend of "phased retirement," which experts predict will become more common as baby boomers start retiring, rather than traditional "cliff retirement," in which older workers move from full-time work to full-time leisure. Deborah Russell, director of economic security for AARP, predicts the trend will emerge within three to five years in the health-care industry, with most other industries following suit. However, Dallas Salisbury of the Employment Benefit Research Institute said even with eased rules, employers will be unwilling to offer the flexible, part-time schedules older workers want.

Source: "No longer your grandparents’ retirement" Portsmouth Herald (March 2, 2005)