Unretirement is on the rise. According to a recent survey by F&G Annuities & Life, 29% of retirees are considering a return to work. That includes 54% of Gen Xers who retired early.
While many retirees jump back into the workforce because they are worried about running out of money or feel like they're lacking purpose, you can also approach unretirement from a positive perspective.
Here's three ways that unretiring might help settle some of your money concerns while boosting ROL in the process.
1. Your Skills are Still Valuable.
While older workers have traditionally battled against ageism, a growing number of companies are starting to appreciate what established pros have to offer. Your decades of experience, well-honed professional and people skills, and network of contacts are all extremely valuable resources that younger workers will spend their careers trying to accumulate.
But older workers also approach their jobs very differently than younger workers. A study by Bain found that seniors are attracted to work that's interesting and that challenges them creatively. They're also more focused on helping coworkers and customers and fostering a strong culture.
2. Your $Lifeline in Retirement is Growing.
In 2023, U.S. life expectancy had its biggest jump since the 2020 pandemic, up to 78.4 years. It's likely that advancements in AI and other health care technologies will only drive those numbers higher as doctors gain more tools to help them detect medical issues earlier and treat them more effectively.
Combine these advancements with your healthy diet and exercise routine and it's likely your retirement is going to be longer than your parents' or grandparents'. A couple of extra years of earning could help pad your nest for when you'll need it the most in the later stages of retirement.
Working longer might also be good for your Social Security benefits. If you’ve reached a point in your career where you can command a high salary, that could push up the amount of your benefits. And collecting a salary might also make it easier for you to delay claiming your benefits until full retirement age, also increasing the size of your benefits.
3. You Need Something to Do.
Many early retirees are looking forward to the “endless weekend” model of retirement.
But, once the weekend starts, they wish they knew how to make it end.
If travel and leisure time aren’t as fulfilling as you imagined, working in some capacity might help you structure your time and reconnect with your sense of purpose.
And remember, unretirement doesn’t mean you have to go back to your old job. You could start consulting, teaching, or working for a nonprofit that couldn’t normally afford to hire someone with your expertise.
Or, if you’ve been dreaming up your own company for years, it might be time to open up shop. Your first hire: you, as CEO.
Putting work that matters to you at the center of your schedule – even for just a year or two – might help you think about ways you’ll be able to repurpose your skills, stay connected to other people, and give back once you’re ready for full retirement again.
Ready to Unretire?
Talk to your spouse first.
Then make an appointment to talk.
While unretirement might seem like an easy fix for retirees who are struggling with this $Lifeline transition, it’s possible that going back to work isn’t going to solve bigger issues. If you’re nervous about market performance or struggling with your sense of identity, those problems will still be there when you retire again.
There are also financial considerations we need to discuss. Collecting a paycheck could push up your Medicare premiums and trigger taxes on your Social Security benefits.
Let’s have a conversation and figure out if returning to work will truly improve your ROL.
