Associate Professional in Human Resources Training Practice Exam

Phased retirement involves a gradual transition towards complete retirement, allowing employees to reduce their work hours or responsibilities over a specified period while still maintaining some level of engagement with their jobs. This approach provides several benefits, both for the employee and the employer. For the employee, it allows for better financial planning and adjustment to retirement life without sudden changes. It also enables them to share their knowledge and experience with younger employees during this transition phase, which can be invaluable for the organization's continuity and culture.

The other options do not capture the essence of phased retirement. Immediate retirement from the workforce would mean stopping work entirely without any transitional phase. Continuing to work without any modifications suggests no change in work status, which contradicts the concept of a gradual shift in responsibilities. Lastly, offering retirement packages to all employees speaks to a benefits strategy rather than a phased approach to an individual's retirement process.