Yahoo Finance has published Boomers and Gen Xers are betting on a retirement “mega-trend” that could transform the workforce – and when employees leave their jobs….
Phased retirements aren’t unheard of. According to Principal Financial Group’s Financial Well-Being Index, 61% of companies—mostly larger organizations—have some experience in implementing them. But they are becoming more structured—currently, only 16% of employers have experience with phased retirements on a regular basis—as more employees voice how much they value flexibility, says Chris Littlefield, president of retirement and income solutions at Principal.
The same report finds that “gradually decreasing hours” is the most desired way of retiring for current workers, particularly for Gen X, millennials, and Gen Z. Littlefield says the shift is starting with Gen Xers because they’re the first to have to rely primarily on 401(k)s and other forms of personal savings for retirement; they may not be able to afford a hard stop at 65, but they do want to take their foot off the gas a little bit.
Last November this site proposed a phased retirement for autoworkers called P2. You can read it here…
Those options may have just gotten fewer. A YouTube video by The Duke of Early Retirement takes a look at what the impact of the incoming Trump administration promise to gut the Affordable Care Act (Obamacare) would have on folks retiring early.. This is important when considering the fact that the average retirement age is 62. Medicare doesn’t start until 65. That leaves many retirees, including Tier 2/In Progression members without retirement health care benefits to figure it out for themselves. Many folks are forced into early retirement by health issues, family obligations, or other concerns.
Currently, the subsidized health insurance plans available under the Affordable Care Act are one of the best options to bridge the gap between early retirement and Medicare. What if a member that has family obligations could still work three days a week, bringing their experience and skills on a part-time basis? What if this member could still keep their health insurance? Now, that would be a life-changing benefit. Let’s make PTWO (Part-Time on the Way Out) a reality next contract. Your ideas are welcome.
