Retirement Planning, Elder Law, and Senior Finance Unretirement: Retirees Returning to Work 6/13/2023 | By Charlie Fletcher Part of the American dream used to be retiring by age 65 and doing whatever you wanted! Stereotypes included everything from golfing each day to traveling the world, or even taking care of grandkids. But today’s retirees are seeing the world a bit differently, creating a rising trend of “unretirement,” as retirees decide to rejoin the workforce. Let’s take a closer look at some of the reasons that people may make the decision to unretire, and what you should consider before you decide to jump back into a career, yourself. There are more things that might be impacted than you realize, so understanding the pros and cons of taking on a job after retirement is important. Reasons for unretirement Finances There’s no question that we’ve been experiencing some challenging times with the global economy. One study from Paychex found that 55% of “unretiring” individuals said they were doing so because they needed money. Rising inflation has created problems for many Americans. People planning for retirement didn’t the price of staples like eggs and milk to go up so much. The cost of gasoline makes travel less affordable. It’s easy to put together comfortable retirement plans, but when you can’t control the state of the economy, those plans sometimes need to change. Seniors who have been targeted by scammers might have to return to work to recoup some of the money they lost. Whatever the case, it never hurts to have a few extra dollars in savings, and having that nest egg of comfort is a big deal to plenty of people as they age. In facing a deficit, people have a choice between cutting expenses or bringing in more money – getting a job means not having to eliminate necessities – and maybe even increasing the discretionary spending. Other challenges of retirement Maybe you’re fine from a financial perspective, but you find yourself getting bored with the retired life. It can be challenging to manage life transitions that aren’t as exciting as you thought they would be. If you’re dealing with boredom, going back to work – even part-time – can make a big difference. You might also find that you’re lonely after retirement. Loneliness and isolation can be big problems for older adults in today’s society. Unfortunately, they can also be linked to serious health issues, including: Increased risk of dementia Increased mortality rate Heart failure Increased anxiety, depression, and other mental health issues Finding the courage to start – again. A four-part series on older adults starting new careers, from Boomer magazine Thankfully, we live in a world that’s buzzing with technology. It’s easier than ever to stay connected to loved ones and to even discover new friends online. But, that might not be enough for you. If you’re feeling lonely at home and you’re not socializing as much as you want, going back to work will not only give you a sense of purpose, but it also will help you interact with people on a daily basis and ward off the effects of loneliness. Considerations of rejoining the workforce If you decide that you want to rejoin the workforce, you’ll discover plenty of perks to going back to work. But remember, you’re not the same person you were 40 years ago when you first started your career. Consider these factors before jumping in feet first. Effects on Social Security benefits First, consider how your social security benefits might be affected. If you’re over the full retirement age (currently 66 if you were born between 1943 and 1955), your benefits shouldn’t be affected at all. You can work and earn as much as you want without penalty. However, if you’re under 66 and returning to work, your benefits could be reduced if you make too much. Weigh the financial pros and cons before you make your decision. If you’re concerned about losing your social security benefits or not making as much as you should, there are ways to supplement your income without coming out of retirement, including deferred annuity, rental income, CDs, or a reverse mortgage. Consider talking to a financial advisor about your options. Your stamina and health It’s important to consider how you feel, especially if you’re taking on a job that is physically strenuous. Talk to your doctor before making your decision. Preventive care appointments can help you stay on top of your health and will make it easier to address any minor issues before they turn into larger ones. Prioritizing your mental well-being is crucial, too. While there are mental health issues associated with loneliness, stress, anxiety, and depression are often a part of a workplace. In fact, 83% of American workers struggle with workplace stress. If you’re going to take on a new job, make sure it’s within your personal stress threshold. 10 ideas for an unretirement Second Act Job availability Do some research to determine if there are job available in your field – perhaps some consulting jobs would draw upon your years of expertise without expecting the commitment of a full-time job. If the jobs in your field are lacking, look for other jobs that can utilize your strengths and interests. In fact, doing something new and stimulating can help keep you mentally engaged. An unretirement job might even be your chance to dip your toes in a field that has long intrigued you. Lifestyle changes Ask yourself if there are aspects of retirement that you don’t want to have to give up, like free days to help provide childcare for a grandchild or volunteer work that has added meaning to your life. You might be able to find remote work that will allow you more flexibility – or you might decide that unretirement is not the right choice for you. There’s a lot to consider when it comes to unretirement. It’s a very personal choice, but weighing out the pros and cons and determining your real needs will make it an easier one for you. Read More Charlie Fletcher Charlie Fletcher is a freelance writer from the lovely “city of trees” – Boise, Idaho. Her love of writing pairs with her passion for social activism and search for the truth. You can find more of her writing at CharlieFletcher.Contently.com.