Bangalore: In the midst of the ongoing economic turmoil, there has been an increased interest in phased retirement. Employees believe that these programs offer a way to ease rather than plunge into retirement, which can pay psychological and financial dividends, reports Wall Street Journal. Had everything gone as planned, Annis and Ernie Fuller would be retired by now. But after consulting with their financial planner late last year, the couple decided to stay on the payroll, while taking a 'phased retirement.' Under the program rolled out in 2008 by Fullers' employer, Abbott Laboratories, the couple, by remaining on the job, can continue to earn income, accrue pension and social security benefits. But in return for taking a 10 percent reduction in pay, they also receive five extra weeks of vacation each year, boosting the total to nine weeks. "It's going to be hard to use all those days," jokes Fuller, who says that she and her husband, plan to travel and spend time with their grandchildren. Like Abbott, many employers are introducing phased-retirement programs to prepare for mass retirements among baby boomers, an eventuality delayed by recession. Persuading near-retirees to stick around long enough to teach colleagues how to do their jobs, is the objective. According to the Wall Street Journal, in a survey released in July, the nonprofit Families and Work Institute in New York found that 77 percent of 400 employers contacted had taken steps to reduce their labor and operation costs during the previous 12 months. Of those, seven percent said that they were relying on phased-retirement programs. Clemson University in South Carolina is one such employer. Hit by a $38 million drop in state funding since July 1, the school has introduced many cost-cutting measures, including a phased-retirement program for faculty that meets certain service and age requirements, says Michelle Piekutowski, Associate Chief Human Resources Officer.