Retirement has become less predictable in recent years, with changing economic conditions and evolving lifestyles prompting a shift towards more flexible retirement strategies. For many, traditional retirement—leaving work entirely at a fixed age—is no longer the goal. Instead, the focus is on phased retirement approaches, maintaining balance, and adapting to life’s uncertainties.

Phased retirement: a growing trend

Phased retirement, where individuals gradually reduce their working hours before fully retiring, is gaining popularity. This approach offers several benefits, including a smoother transition from work to retirement, extended pension growth, and an opportunity to maintain social and professional engagement.

For example, an individual might choose to work three days a week after reaching the traditional retirement age. This allows them to draw a partial income while preserving their pension savings for longer. Phased retirement also provides a chance to explore hobbies, take on volunteer roles, or spend more time with family while maintaining financial stability.

Challenges facing Gen X

Generation X, often referred to as the “sandwich generation,” faces unique retirement challenges. With responsibilities that include supporting both ageing parents and their own children, many Gen Xers have struggled to save adequately for their retirement.

Research suggests that a significant proportion of Gen Xers are uncertain about when—or if—they will be able to retire comfortably¹. Rising living costs, delayed homeownership, and periods of economic instability have all contributed to this uncertainty. For this group, flexibility is not just desirable; it is essential.

Adapting to life’s uncertainties

Flexibility in retirement planning is key to navigating life’s unpredictability. This might include adjusting your retirement timeline, varying your pension withdrawals based on market conditions, or exploring alternative income sources, such as part-time work or freelance projects.

Economic uncertainties, such as inflation or volatile market conditions, can affect the sustainability of retirement savings. By adopting a flexible approach, individuals can ensure they remain resilient, even when circumstances change. Regularly reviewing your financial plan with a trusted adviser is vital to maintaining this adaptability.