Phased retirement encourages active lifestyle, but may reduce benefits

A phased retirement is a growing trend in retirement living that encourages Americans over the age of 65 to cut back on their hours but still work part-time in their field. In addition to adding to their retirement funds, these workers might experience the rewards of independent living and feel like an active member of society.


However, experts caution that workers should do their homework before setting out on a phased retirement lifestyle.

DallasNews.com reports that some benefits, such as life insurance and long-term disability insurance, might be tied to the amount that a professional earns.


"Go through every single benefit that you have, especially the ones that are tied to pay level," Alan Glickstein, senior consultant in the National Retirement Practice at Watson Wyatt Worldwide in Dallas, told the news source.


Seniors who opt to take a phased retirement might experience longer life, according to Health.com. The website reports that individuals over the age of 65 who volunteered and stayed active in their communities had less than half the risk of dying compared to their non-volunteering peers.



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