A third (34 per cent) of U.S. employees aged 50 and older are phasing into retirement, according to a new survey by WTW.

The survey, which polled 10,000 U.S. employees working at medium- and large-sized private sector companies, found among workers who are currently phasing into retirement, six in 10 (61 per cent) have reduced their work hours and 41 per cent said they’ve reduced their job responsibilities.

Two-thirds (66 per cent) of respondents said their employer-provided retirement plan is more important than ever and 72 per cent said it’s their primary retirement savings vehicle. More than half (55 per cent) cited their retirement plan as an important reason to stay with their current employer, up from 48 per cent in 2017.

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When asked about the factors that drive their decisions about when and how to retire, the No. 1 reason was financial security (76 per cent), followed by health (50 per cent) and having more time for family, leisure and travel (45 per cent).

Nearly half (46 per cent) of workers aged 50 and older said they expect to work past age 70, a sharp rise from 36 per cent two years ago and 30 per cent prior to the coronavirus pandemic. Eight in 10 (79 per cent) employees admitted they aren’t saving as much for retirement as they should be and 52 per cent reported being on the right track to retirement.

Only 30 per cent of respondents rated their employer as highly effective at using the skills and knowledge of older workers. Notably, 67 per cent said they believe it’s important to be a mentor and help train less experienced colleagues before they retire.

“Phased retirement can be a win-win for both employees and employers,” said Jonathan Sterbanz, senior director of retirement at WTW, in a press release. “Working fewer hours, even with reduced pay, can help employees transition into retirement both financially and emotionally. At the same time, companies want to hang onto experienced employees and encourage them to pass on their wealth of knowledge to younger employees.”

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