It Really Is Hard to Retire When We Want to!!

1 in 8 Retirees Plan To Go Back to Work in 2024

In addition to carefully planning when you will retire, it’s also important to determine the best time of the year to quit work. This decision is based on numerous factors; each person's circumstances are different.

The specific date on which you start your retirement could impact several different factors that affect your retirement finances. These include benefits from your former employer, Social Security distributions, and taxes, to name a few.

However, many are not as financially stable as they previously were. This may be one factor why older Americans are “unretiring” and returning to work.

Some statistics that you may not have known:

• 12% of retired Americans likely to start working again next year
• Top reasons for retirees returning to work are inflation and high cost of living
• Two-thirds of retirees fear age bias will affect job prospects
• 1 in 4 Americans ages 62 to 85 say they are currently working

Inflation and Cost of Living Drive Reasons for Retirees Returning to Work

Twelve percent of currently retired Americans say they are very likely (3%) or somewhat likely (8%) to go back to work next year.

The top reason for returning to work is inflation and increased cost of living (61%). Additionally, retirees say they may return to work because they did not save enough money for retirement (34%), to help pay debt (34%), and to combat boredom (34%).

The majority (78%) of retirees considering a return to work are very enthusiastic (23%) or somewhat enthusiastic (55%) about the prospect.

Two-thirds are concerned about age discrimination

Two-thirds (66%) of retirees who may return to work say they fear age bias will affect job prospects.

The majority say they will seek out a new job in a new industry (59%), while 14% say they would go back to their previous place of employment, and 27% would seek out a new employer in the same industry.

The plurality of retirees want to return to work in-person (45%), while 32% would prefer to work fully remotely, and 11% say they’d like to be hybrid. The remaining 11% say they don’t have a work location preference.

“Most companies understand employment laws and what can or cannot be asked during interviews. When interviewing, it’s important for seniors to display enthusiasm and focus their answers on why they are the best person for the job. They should also be prepared to discuss and highlight their adaptability, ability to learn quickly, technical skills (take classes to learn what you need), and their related work experience. Professional skills that older Americans have learned over their many years of working are one of the reasons so many organizations are interested in hiring from this cohort. Companies understand the value this group brings to an organization.”

A Number of Older Americans Have Already Unretired

Overall, 76% of respondents report they are currently retired, while 17% say they currently work full-time and 7% say part-time.

Of the group of older Americans currently working full or part-time, 25% say they had been retired at one point but are now back to work, while 75% say they never stopped working.

The majority (61%) say they unretired in 2020 or later. The plurality (45%) say they returned to work due to inflation and the cost of living increasing.

For those who have never tried, the top reason is that they enjoy working (51%). Additionally, 41% say they haven’t saved enough yet for retirement.

Only 8% of older people in the U.S. who are currently working plan to retire next year.

The Bottom Line

Many older people can't wait for the day when they finally call it quits on their careers and retire. Still, constantly worrying about finances isn't exactly the way to spend your later years. That is why it's important to consider when you should actually retire rather than focusing on the age at which you are eligible to collect retirement benefits. Before deciding, make sure you have the resources to make the most of this new stage of life.