Many boomers are exploring ways to “try out” or ease into retirement before fully leaving the workforce, a trend often driven by a mix of financial necessity, fear of losing purpose, and the desire to balance freedom with continued income. Rather than a hard stop at age 65 (the normal retirement age in Canada), many are opting for “phased retirement” which involves reducing hours, switching to part-time, taking sabbaticals, or pursuing “mini-retirements” to test their readiness.
Why are boomers “Testing” retirement?
- Financial security concerns. Over 58% of boomers suffer from financial stress. Testing retirement with a part-time job helps gauge their affordability.
- Fear of losing purpose. Transitioning to retirement often means leaving social connections and identity. “Testing” helps determine how they will spend their time and re-define themselves.
- “Unretiring”. 13.2% of retirees re-enter the workforce.
- Workplace flexibility: Over 35% of boomers expect to work during their retirement, often seeking flexibility rather than a full exit.
How They Are Trying It
- Phased Retirement: Gradually reducing work hours over several years.
- Consulting/Contracting: Moving from a full-time role to consulting to keep a foot in the door.
- Mini-Retirements: Taking extended, uppaid leaves of absence to travel or pursue hobbies.
- Changing Roles: Shifting to less demanding, part-time, or more fulfilling roles.
While some are testing it, others are forced to work longer, with roughly 20% of pre-retirees 65 and older still employed, nearly double the share from 35 years ago.
In my book, Retirement: The Ultimate Life Journey, I write about alternatives to full retirement. I provide true-stories and examples of actions taken, including when retirees are forced into retirement due to health or layoffs. See: Chapter 1: Your retirement, Your dream!
If you are around or between the ages of 45 to 65, it’s time to explore your future as a retired person. In your quest for a successful retirement, whether you select full retirement or some other alternative, you need to recognize its changing image.
For information about workshops, webinars and/or personal coaching, contact Rick: www.whencaniretire.ca or write: ramgt75@rogers.com