Phased and partial retirement: Preferences and limitations

This paper first surveys the literature on gradual retirement. The empirical evidence that is presented considers the US, Europe and more specifically, the Netherlands. Two kinds of gradual retirement are considered: partial and phased retirement. Partial retirement is defined as a change to a less demanding job (usually with fewer hours and a lower wage), and phased retirement is defined as a reduction in work hours in the same job. The paper also explores the employer’s considerations in deciding whether or not to offer gradual retirement schemes, and the institutional constraints imposed by state- and occupational pension systems.