More Women Are Taking a Phased Approach To Retirement: 2 Signs You Should, Too
Written by
Gabrielle Olya
Edited by
Molly Sullivan
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
We’ve traditionally thought of retirement as an all-or-nothing thing, marking a formal end to your working life. However, more women than ever are taking a “phased approach” to retirement. According to Fidelity’s Evolving Landscape of Retirement study, 50% of women who retired in 2024 took a phased approach to retirement by working part time, taking on less responsibility or transitioning to more flexible work, compared to only 19% of women 20 years ago.
In this “Financially Savvy Female” column, we’re chatting with Sangeeta Moorjani, head of tax exempt market at Fidelity, about why more women are opting for a phased retirement, plus, signs it could be the right choice for you.
Why are more women than ever opting for a phased approach to retirement?
We see two main factors driving women to take a phased approach to retirement. First, because women generally have a longer life expectancy than men, that means planning for a longer retirement, which increases the risk of outliving our savings. Add in the unique factors that can impact a woman’s ability to save, such as higher healthcare costs and juggling caregiving needs, and it’s not hard to see why women might be nervous to suddenly transition to not having a steady income.
The second factor is the general anxiety many are feeling about the solvency of Social Security and Medicare benefits. Unlike past generations, most women retirees today don’t have a pension to rely on, so there’s a lot more uncertainty around whether their current savings will support them through retirement. Taking a phased approach can certainly mitigate that by allowing women to supplement their retirement income.
There are some women who merely aren’t ready to fully disconnect from the career-driven part of their personality — it’s a big leap! But the financial concerns are certainly driving more women to reconsider their path to retirement.
For women who are currently planning for retirement, what are some signs that a phased approach is the best move for them?
For women who are trying to decide how to approach retirement, the first step should be taking a hard look at your savings to see if what you have will cover your expenses. Women need to account for longer retirement years and higher healthcare costs. On average, a woman retiring at 65 will need to plan for 19.25 years of retirement, compared to 16.95 years for men. Women can also expect to spend an average of $175,000 on healthcare costs and medical expenses throughout retirement, which is more than 10% higher than what men can expect to pay.
And if you’re just not ready to make the leap, that’s OK too! Our research shows employers are increasingly embracing nontraditional retirement plans for their aging employees.
More From GOBankingRates
