Why tapering off work often beats stopping abruptly when retiring

Research shows gradual retirement or tapering off, often leads to better outcomes than an abrupt stop.

It’s the new year and with it much reflection about our feelings towards working, and in some people’s cases, for how long. Retirement research increasingly shows that leaving work gradually— such as through phased retirement or bridge employment—often leads to better outcomes than an abrupt stop.

Why? Evidence points to three key benefits:

🔹 Smoother psychological adjustment
Gradual retirement helps preserve structure, purpose, and identity, reducing the shock that can follow a sudden exit from full-time work (Wang & Shi, 2014; Fisher et al., 2016).

🔹 Better wellbeing and health
Studies on bridge employment link part-time or flexible post-career work with higher life satisfaction and better mental health—especially when the work is voluntary and less demanding (Zhan et al., 2009).

🔹 Stronger financial resilience
Economic research shows that phased exits allow continued income, delayed pension drawdown, and more time to adjust spending patterns, improving long-term retirement security (Cahill, Giandrea, & Quinn, 2015).

What researchers recommend:

• Treat retirement as a process, not an event

• Explore reduced hours, consulting, or flexible roles

• Plan psychologically—not just financially—for life after work. Researchers recommend integrating:

  • financial planning

  • lifestyle planning

  • time-use planning

  • purpose planning

  People who plan across these domains adjust more successfully.

• Develop non-work identities before retiring mentor, volunteer, learner, caregiver, creator). Retirees struggle most when work has been a primary source of identity. Identity continuity predicts better well being than complete role loss.

• Protect choice and autonomy in timing and structure. Outcomes are consistently better when retirement timing and structure are self-directed. Negotiate control wherever possible.

• Replace workplace social ties intentionally through planned activities, new friendships, peer groups, volunteering, or continued professional engagement.

• Let retirement evolve over time Longitudinal research shows retirement satisfaction changes. What works in the first year may not work five years later. View retirement as an adaptive phase, allowing goals, activities, and work involvement to shift over time.

Bottom line:
For many people, how you retire matters as much as when you retire. The evidence suggests that tapering off work can make the transition healthier, more stable, and more fulfilling.