Why More Workers Are Looking for a New Kind of Retirement
Life + Money

Why More Workers Are Looking for a New Kind of Retirement

Justin Horrocks/iStockphoto

New parents aren’t the only ones clamoring for more flexible work arrangements. Near-retirees are also increasingly looking for schedules outside of the traditional 9-to-5.

More than two-thirds of American workers now want a flexible transition into retirement, according to a new report from the Aegon Center for Longevity and Retirement.

The top reasons for wanting to work in retirement include a desire to keep active, enjoying work, and financial concerns.

Related: How Much Money Do You Need to Retire? A New Guide Might Scare You

Even if they’re making less in a flexible job, many older workers earn enough to put off tapping Social Security, which itself can make a huge difference in an individual’s financial security in retirement. The longer you can delay claiming Social Security, the more valuable it becomes. A worker who is eligible for $24,000 a year at his full retirement age of 65 would get more than $31,000 a year by waiting until age 70, according to an analysis by Merrill Edge.

However, the Aegon survey found that companies are not yet providing options that allow workers to transition into retirement while remaining with their current employer. Just a quarter of American workers age 55 and older said their company offered opportunities to shift from full-time to part-time as they phased into retirement.

“Employers may be overlooking the opportunity to tap into the knowledge, skills, and loyalty of older workers,” Catherine Collinson, ACLR executive director, said in a statement. “By adopting business practices to support a flexible retirement, employers can benefit from improved succession planning and the ability to optimize their workforce management.”