Employer Willingness to Permit Phased Retirement: Why are Some More Willing Than others?

Abstract

Under phased retirement, an older worker remains with his or her employer while gradually reducing work hours and effort. Although older workers often express an interest in phased retirement, actual occurrences are evidently rare. A possible explanation is that employers limit opportunities for phased retirement. Using a survey of employers conducted in 2001–2002, the authors examine how and why establishments differed in their willingness to permit an older full-time white-collar worker to take phased retirement. The survey indicates that employers were often willing to permit the option, but primarily as an informal arrangement. The results also indicate that opportunities for phased retirement were greater in establishments that employed part-time white-collar workers, allowed job sharing, and had flexible starting times. Opportunities tended to be more limited in establishments where white-collar workers were unionized.