As the notion of a four-day work week gains momentum, its benefits have been praised for working parents and people suffering from burnout. It is also said to be a way to attract younger talent.
But there’s another group that will benefit from a shortened work week, one financial adviser says: people nearing or retiring.
“A four-day work week can keep people in the workplace longer,” says Jody D’Agostini, a certified financial planner at Equitable Advisors. “If you spend the weekend doing chores, you don’t have a day to have fun and take care of your health.”
But with a three-day weekend, it might make it easier for older workers to stay rested and in the game, he said, extending retirees’ working lives in manageable ways.
Many people naturally slow down as they get older, but don’t have the money to leave the workforce. Moving to a four-day work week can help them save more for retirement, keep their health insurance until they can enroll in Medicare, withdraw when they start taking Social Security (resulting in higher monthly payments), and keep the job they love until they do. is ready for full retirement.
A new study shows the benefits of a four-day week. In the second half of 2022, 61 businesses in the UK are taking part in the four-day working week pilot programme. Researchers found that it helped reduce employee stress and anxiety, and the number of sick and personal days taken decreased by 65%. At the same time, productivity does not decrease.
Studies conducted in other countries, including the US, have found similar results. A four-day work week, proponents say, could be one solution to many problems of employee burnout in the US.
A 4-day work week will help older workers transition to retirement
For older workers, flexible arrangements are the perfect de-escalation of their working lives, helping them transition out of the workforce. Many older workers take part-time jobs or cut back hours today; a four-day week can make even more of them to reduce workloads and stress levels.
“The four-day work week also has the potential to reduce burnout,” says D’Agostini. “If near-retirees prefer to work, they may prefer to stay in the workforce longer because of the purpose, social connections, and job satisfaction that work can offer.”
Companies can also benefit. Not only are workers more productive in a four-day week, but organizations are likely to retain their most experienced employees for longer. In turn, these employees bring institutional knowledge, and can mentor younger, less experienced colleagues.
But it’s not all about workplace productivity, he said. Three days per week leaves plenty of time for near-retirees to start doing things they can save for full retirement, such as learning a new skill or becoming more active in their chosen profession. Overall quality of life can improve.
Near-retirees may be able to reap the health benefits of working less: Have time to exercise more, spend more time in nature, and generally move away from the hustle and bustle of corporate America, says D’Agostini, without losing income and health insurance.
“You can spend better time with your family and friends if you don’t need to spend extra time away from work to do chores and household chores,” he said.
As companies continue to negotiate what 2023 looks like, that’s something to think about, D’Agostini said.
“This is the benefit that COVID shows,” he said. “We can work differently and still be successful.”
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