The traditional view of retirement—a time to relax, travel, and enjoy the fruits of decades of hard work—has been deeply ingrained in society. But for many, that image of a carefree retirement is rapidly shifting. According to a recent poll by Resume Builder, 1 in 8 retirees are considering returning to the workforce in the coming year, signaling a rise in the trend of “unretirement” or phased retirement.

This new reality reflects not only financial concerns but also lifestyle changes, as retirees seek meaningful ways to stay engaged. Let’s explore why so many retirees are reconsidering the idea of retirement, the impact of economic pressures, and how enthusiasm for work is reshaping the golden years.

Financial Pressures Drive Unretirement

The most significant factor driving retirees back to work is financial necessity. Of the respondents in Resume Builder's poll, 70% cited financial reasons as their primary motivation. As the cost of living continues to rise, many retirees are finding that their savings and Social Security benefits are insufficient to cover basic needs.

Economic challenges such as inflation, housing costs, healthcare expenses, and energy prices have drastically increased retirees’ financial burdens. Many individuals who believed they had planned sufficiently for retirement now face the reality that their nest egg won’t last as long as anticipated. According to the poll, many of those returning to work have seen their savings diminish at an alarming rate, forcing them to rethink their long-term plans.

The idea of returning to work, however, doesn’t necessarily mean re-entering the workforce in the same capacity as before retirement. For many retirees, the shift involves part-time work, consulting, or gig work, allowing for more flexibility and control over their schedules. Phased retirement, which allows retirees to gradually reduce their working hours while maintaining some level of income, has become increasingly popular. This approach not only helps ease the financial strain but also allows retirees to remain mentally engaged and active.

Combatting Boredom and Staying Engaged

While financial concerns are the primary driver behind the decision to return to work, they are by no means the only reason. According to the poll, 42% of respondents said they were returning to work to combat boredom. This statistic speaks to a larger issue: many retirees miss the structure, sense of purpose, and social interaction that comes with having a job.

Retirement, for some, can become monotonous after the initial honeymoon phase of newfound freedom. Without the routine and camaraderie of a workplace, retirees may feel disconnected from the world. This sense of boredom and lack of fulfillment has led many to seek out new opportunities, whether through part-time jobs, volunteer work, or even starting new businesses.

Work can offer retirees a way to stay mentally sharp, maintain a sense of purpose, and stay connected with others. Studies have shown that continued engagement in work or other meaningful activities can help improve cognitive function, lower the risk of depression, and even increase longevity. In this sense, “unretirement” is about more than just financial stability—it’s also about living a fulfilling life in retirement.

Enthusiasm for Returning to Work

Despite the financial pressures and the desire to combat boredom, what’s perhaps most surprising about the Resume Builder poll is the level of enthusiasm retirees have about returning to work. Nearly 80% of those surveyed said they were at least somewhat enthusiastic about the idea of working again.

This enthusiasm is largely driven by the desire for meaningful work and the opportunity to make a positive contribution to society. For many retirees, working in their later years is less about climbing the corporate ladder and more about finding work that aligns with their passions and interests. Whether it’s teaching, consulting, or starting a small business, retirees are looking for opportunities that bring them joy and fulfillment.

Additionally, returning to work can provide retirees with a sense of accomplishment and pride. After decades of developing skills and expertise, many retirees are eager to put their knowledge to use in ways that benefit others. This can be particularly rewarding in industries like education, healthcare, and non-profit work, where the emphasis is on helping others rather than personal gain.

The Changing Nature of Retirement

The idea of retirement as a complete withdrawal from the workforce is becoming less common. According to the U.S. Bureau of Labor Statistics, the labor force participation rate for individuals aged 65 and older has been steadily increasing over the past decade. In fact, by 2026, it is projected that nearly 25% of individuals aged 65 to 74 will still be working.

This shift is due in part to changing attitudes toward aging and retirement. Many individuals are living longer, healthier lives, and they want to remain active and engaged well into their later years. Rather than seeing retirement as the end of their working lives, many retirees view it as an opportunity to explore new career paths or pursue passion projects.

Phased retirement and part-time work allow individuals to transition out of full-time employment gradually, rather than stopping work abruptly. This approach provides retirees with the flexibility to balance work with leisure, travel, and time spent with family. It also allows them to continue earning an income while adjusting to the realities of retirement.

The Role of Employers in Phased Retirement

Employers are also playing a key role in supporting the trend of phased retirement. Many companies are recognizing the value of retaining older workers who bring a wealth of experience and institutional knowledge to the workplace. In response, some businesses are offering flexible work arrangements, consulting opportunities, and part-time positions to encourage retirees to remain engaged.

For example, some organizations offer phased retirement programs that allow employees to gradually reduce their hours while maintaining benefits such as health insurance and retirement contributions. These programs provide a win-win solution for both retirees and employers, as they allow companies to retain valuable talent while giving retirees the flexibility they need to transition into retirement.

Additionally, the rise of remote work and the gig economy has made it easier for retirees to find work that fits their needs and schedules. Platforms like Upwork, Freelancer, and Fiverr offer retirees the opportunity to work as independent contractors, providing flexibility and control over their work hours. This type of work is particularly appealing to retirees who want to stay engaged but are not interested in returning to a traditional 9-to-5 job.

Financial Planning for Retirement

The growing trend of unretirement highlights the importance of financial planning in retirement. For those nearing retirement age, it’s essential to have a clear understanding of their financial situation and how long their savings will last.

The rising cost of living, especially in areas like healthcare, housing, and energy, means that many retirees need to plan for higher expenses than they initially anticipated. Financial advisors recommend that individuals create a comprehensive retirement plan that takes into account potential increases in living costs, unexpected medical expenses, and the possibility of outliving their savings.

For those already in retirement, returning to work can provide a financial cushion and help extend the life of their retirement savings. However, it’s also important to consider the impact that returning to work may have on Social Security benefits and taxes. Depending on how much income a retiree earns, their Social Security benefits could be reduced, and they may be subject to higher taxes.

Working with a financial advisor can help retirees navigate these complexities and make informed decisions about returning to work. By developing a clear financial strategy, retirees can ensure that they are making the best choices for their long-term financial well-being.

As phased retirement and unretirement become more common, the notion of working past the traditional retirement age of 65 is no longer unusual. The financial pressures of rising living costs are the primary driver behind this trend, but many retirees are also returning to work to stay mentally engaged, combat boredom, and find new meaning in their lives.

With nearly 80% of retirees expressing enthusiasm about the prospect of returning to work, it's clear that unretirement is more than just a financial necessity—it’s a way to remain active, connected, and fulfilled in later life. As employers offer more flexible work options and retirees seek new opportunities, the workforce is becoming more diverse, with older adults playing an increasingly important role in the economy.

For retirees considering a return to work, the key is finding the right balance between financial security and personal fulfillment, allowing them to enjoy the best of both worlds in their golden years.

Warm regards,

Sharon, Your Safe Money Lady™

Sharon Ben-David

Phone: (954) 261-5200
Licensed Mortgage Broker, Certified Professional Retirement Planning Adviser, and Financial Advocate

Protecting Your Nest Egg, Inc.

NMLS #2308601