Is a ‘Flextirement’ Job a Good Fit for You?

“Michelle is passionate about her work, she knows the industry, and has spent years building strong relationships with our clients,” Costa says. “We knew we’d have a hard time replacing her and wanted to work out a plan that would ease the transition.”

In addition, Costa says he sees how phased retirement plans could also benefit his agency’s clients with their own recruitment process.

“There’s really no replacement for experience,” Costa says. “For our clients who are looking to hire skilled workers, a flextirement plan can offer a very competitive advantage.”

Why phased retirement can help some older workers

With many older jobholders looking to extend their careers for financial and social reasons, flextirement can be an attractive employment option.

Randstad’s 2023 annual Workmonitor research found that more older employees are remaining in jobs in which they find meaning and purpose. In addition, many are continuing to work past traditional retirement age, because they enjoy their social connections with colleagues and, in many cases, want to boost their retirement income.

Garrett Yamasaki, founder and CEO of WeLoveDoodles, a dog product company based in San Mateo, California, has been offering phased retirement plans to his employees for the past two years. He says the model offers a win-win scenario for both his staff and the company.

“It allows our team members to transition into retirement gradually while maintaining a sense of purpose and staying engaged with work they love,” he says. “It’s particularly beneficial for those who aren’t ready for a full stop from their professional life but are looking to reduce their workload and enjoy more freedom and time for personal pursuits.”

​From a business perspective, Yamasaki says phased retirement helps his company retain valuable experience and skill sets.

“It allows for a smoother transition and knowledge transfer to younger team members, which is crucial in our dynamic digital environment,” he says. “This approach also enhances our employer brand, demonstrating our commitment to employee well-being and work-life balance, which in turn helps attract and retain talent.”

Nikita Sherbina, cofounder and CEO of AIscreen, a software company in Sierra Vista, Arizona, implemented phased retirement plans three years ago and says his company has seen a 15 percent increase in satisfaction and a 20 percent reduction in turnover costs.

“Our employees get a gradual transition into retirement … while we, as employers, benefit from a smoother succession planning process,” he says. “Our older employees often serve as mentors to our younger employees, fostering a collaborative, knowledge-sharing environment, and a sense of camaraderie.”

Phased retirement plans are as unique as the companies that offer this option. Some plans allow employees to begin phased retirement at age 55 or older and work part-time for a designated period until they enter full retirement. At WeLoveDoodles, Yamasaki says its phased retirement plan isn’t limited to a specific time frame, such as a year of two.

“Our approach is more flexible and is tailored to each individual’s needs and circumstances,” he says. “Some may opt for a shorter period, while others might extend beyond a year, depending on their role and personal situation.”

Whiffen believes phased retirement allows mature workers the flexibility to make an impact without committing to full-time work.

“I think my generation is looking for retirement options that are different than our parents’ retirement,” she says. “Flextirement offers me the best of both worlds: I’m able to spend more time with family and traveling, while I continue working part-time in a job I love.”