An arrangement to meet the needs of employees nearing retirement age who want to continue working but in a different capacity. A phased retirement scheme, e.g. through a part-time arrangement, allows them to remain in the workforce under a reduced and more flexible work schedule. Alternatively, there could be a change in the job function or job scope, e.g. less travelling.
This provides a win-win situation for both parties as employees enjoy a stable income while the organisation retains the talents and expertise of its staff.