Phased retirement means gradually reducing your work rather than stopping all at once — easing from full-time work into full retirement over time, instead of a single hard 'cliff edge' stop. It's an increasingly popular alternative to the traditional retire-overnight model.
It can soften both sides of the retirement transition. Financially, continuing to earn something can ease the shift and let pensions grow a little longer. Emotionally and practically, it gives a gentler adjustment — keeping some structure, purpose and social contact while gaining more free time — rather than the sometimes-jarring stop of full retirement, which some people find hard.
Phased retirement interacts with your pension, tax and benefits in ways that depend on your circumstances, so it's worth getting guidance — the free Pension Wise and MoneyHelper services, and a regulated adviser, can help. You'd also need to talk to your employer about what's possible. Our free retirement routine planner and retirement planning guide help you think it through. This is general information, not financial advice.