Nearly half (49%) of workers aged 50 or older want to phase into retirement (32%) or have already done so (17%), according to a new survey.

They are transitioning into their post-work years by reducing their working hours or job responsibilities as they near retirement.

The 2024 Global Benefits Attitudes Survey by data analysts and professional services company WTW (formerly Willis Towers Watson) found that most of the workers wanted to transition into retirement over a long period of time.

For example, those who started phasing into retirement at age 56 expected to work 10 more years. The survey found similar results for workers who wanted to phase into retirement when they are older.

Workers who are currently phasing said they had reduced their work hours (75%) or job responsibilities (31%). Slightly fewer wanted to change to a different role or job in their industry or change where or how they work.

When asked what was driving their decisions about when and how to retire, the top reason was financial security (68%) followed by their health (61%) and having more time for family, leisure and travel (56%).

Interest in phased retirement comes at a time when four in ten (39%) workers aged under 50 expect to work past age 70, a sharp rise from 27% two years ago.

Additionally, eight in 10 workers (79%) admitted they aren’t saving as much for retirement as they should be, and less than half (47%) reported being on the right track to retirement.

Helen Holman, head of defined contribution consulting at WTW, said: “Phased retirement can be a win-win for both employees and employers. 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 on to experienced employees and encourage them to pass on their wealth of knowledge to younger employees. Still, most employees think their employers can do a much better job of leveraging the skills of older workers.” 

Only 30% of respondents rate their employer as effective at using the skills and knowledge of older workers. According to the research, two-thirds of employees (66%) believe it’s important to be a mentor and to help train less experienced colleagues before they retire.

• The 2024 Global Benefits Attitudes Survey was conducted from January to March 2024. Respondents include 6,000 UK employees working at medium and large private sector employers, representing a broad range of industries.