I would have never considered phased retirement ten years ago. But now, with sixty-five looming - only fifteen years away - the idea of working part-time during retirement doesn’t seem so bad. There are a number of benefits. I might be able to retire earlier. I could potentially maintain my health benefits, and reduce the amount of money I’m depleting from my savings.

It would also give me more flexibility now, in paying down my current mortgage. For example, if I live very frugally between now and retirement, I can pay the mortgage off. This would be essential if I were to retire completely. However, what if I could pay it down to within five years of completion, and refinance at the beginning of a phased retirement? Not only would I have more money to live on between now and then, by refinancing, I’d greatly reduce my monthly payment, making it manageable.

In these turbulent economic times, of dropping 401ks, spiraling health costs, and a troubled social security system, for some of us at least, it will take major creativity to maintain our current lifestyle in retirement. Phased retirement is a nice option to have available to help ensure that happens.

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