Why Are So Many Retirees Going Back to Work?

As of March 2022, about 1.7 million retirees had rejoined the workforce. But why? What is causing this recent trend of “unretirement”?

For one thing, it’s not that recent. Unretirement was happening even before the pandemic hit, mostly due to dissatisfaction with fixed incomes and the rising cost of living.

However, the pandemic itself is certainly a factor. Many retirees weren’t actually ready to retire when Covid-19 began making the news. But about 2.5 million of them felt forced to retire due to the perceived danger of public spaces, closed businesses and layoffs, or difficulties adjusting to remote work.

Now that the pandemic feels mostly under control for most people, some of these early retirees are ready to get back to work. And with a high number of job vacancies and rising wages in some locations, work seems more appealing.

And of course, inflation is a big factor. Now that it’s hit a historic level of 8.6 percent, we’re all feeling the pinch in our budgets. Retirees who have been living on fixed incomes discovered that their money simply doesn’t go as far as it used to. Heading back to work, even part time, provides an obvious solution for many.

Other workers, not yet retired, are rethinking their timelines. Many of those who had expected to retire soon are now evaluating their options. Instead of a sudden retirement, we expect to see a trend of “sliding into” retirement. In their sixties workers might start gradually cutting back on work, switching to part time for a while before eventually retiring completely.

If you do decide to go back to work, remember that retirement is a great time to learn new skills. Brush up on your technology and remote work skills so that you can compete in the post-pandemic era.

And for more information on retirement planning, including the different types of revenue streams you can establish before you retire, call us to schedule a consultation.