At age 60, Kathy Frederick routinely put in 50 hours a week as a hospital administrator for Scripps Health Systems in San Diego. She managed a 15-person staff, and regularly took work home on week-ends -- until one day five years ago she decided enough was enough. "I wasn't ready to retire," says Frederick, "but after 18 years at that pace, I wanted a different challenge and more time for myself."

So Frederick worked with her boss to create a new role for herself at Scripps as a special-projects manager, which allowed her to gradually downshift her hours to her current two-day-a-week schedule. Frederick is thrilled with the change, which she's found reenergizing. "I'm still valued," she says, "but I get to work on my own terms."

Frederick is one of a growing number of fifty- and sixtysomethings who aren't ready to quit work but would like to cut back -- in fact, four out of 10 people 50 and older say they'd like to gradually reduce their work hours as they age, according to an AARP survey.

Some love what they do but are tired of the hectic pace and long hours. Others would be happy to bid the job adios but can't afford to give up a regular salary, benefits, or the chance to build a bigger nest egg. Employers are warming to the idea of workers phasing in retirement, too, since it allows them to save money on some of their longest-tenure (read: most expensive) staffers without losing that expertise entirely.

Sound appealing? Whether easing up at work makes sense for you depends on your finances -- Can you afford to live on less now? Will it hurt your retirement lifestyle later? -- and also on the nature of your work.

To decide, start with a clear-eyed assessment of your prospects. The challenge, if you opt to move ahead, will be to craft a new role that lightens your load without damaging your long-term security.

Know what works

Is your current job doable on a reduced schedule, or can you reinvent your role in a way that will allow you to work at a less pressured pace? And do you work for the kind of employer that will be receptive to the idea?

Those are the first questions to ask yourself. The answers will depend in part on your company's culture and on your standing within the organization -- as well as on your ability to think critically and creatively about your role.

Build on precedent. Your employer probably doesn't have a formal phased-retirement program; few do. But if the company already has other kinds of flexible work options in place -- part-time schedules, say, or telecommuting arrangements -- you can model your proposal on them. A variation on a working arrangement that managers are familiar with and know can succeed will get a better reception than a concept they've never heard of.

Originally posted here:
Retirement plan - Retire on your terms