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If You’re a Restless Retiree, Consider These Eight Reasons Why “Unretirement” Could Be a Great Idea

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Among the many disruptions from the COVID pandemic, millions of older workers in the U.S. found their retirement plans upended as business cutbacks forced them into early retirement. But like the turning of the tide, there seems to be clear evidence that early retirement has shifted into “unretirement” for many older workers who are restless at having been forced to quit work before they were ready.

Here at the AgingOptions Blog, for those considering a return to the workforce in 2023, we wanted to share this US News article about the benefits – eight in all – of unretiring. But before we do, we were wondering just how big a thing this so-called unretirement trend actually is. We did a bit of research and came across a report from CNBC published last August making it clear that a large number of recent retirees do seem to be itching to return to work.

“A combination of record high prices and a record number of job openings has been encouraging more retirees to go back to work,” CNBC reported. This “unretirement” trend appears to have rebounded dramatically since spring 2022. “About two-thirds, or 68 percent, of retirees would consider returning to work, according to a recent CNBC All-America Workforce Survey .”

The effects of COVID were especially dramatic. “The pandemic prompted many people to accelerate their retirements,” says CNBC, “with 62 percent of retirees saying they left the workforce earlier than planned and 67 percent indicating they left at least two years early.”

But amid such apparent restlessness among retirees, especially recent ones, is unretirement really the answer? The US News article, written by reporter Rachel Hartman, gives an emphatic yes, and lists eight reasons why returning to work makes sense. Let’s see what she recommends and why.

Retirement May Be the Ideal, but Working Brings Benefits

Writing in US News, Hartman begins, “Retirement is often painted as the ideal way to spend your time after decades of working. No alarm clocks and a free schedule are often considered some of the perks you’ll find. However, for many, the chance to return to work holds additional appeal. It could help you in multiple ways, ranging from a financial boost to better mental health and a full social calendar.”

The following are Hartman’s eight potential benefits that can come with unretiring. Some may seem familiar, but all are worth exploring as you consider your own situation.

Benefit #1: Earn Extra Cash

The first benefit on the list is perhaps the most obvious: working during your retirement years can give you a much-needed boost of income during a time when you would otherwise have to live off of your savings. This extra cash is especially helpful if you didn’t quite reach your retirement savings goals. “And even if you have an ample nest egg,” Hartman explains, “you might find it refreshing to not have to withdraw from retirement accounts.”

But she adds, “Be sure to evaluate your sources of income before you start working, as Social Security benefits can be impacted by your earnings until you reach full retirement age.” (This particularly applies to the millions who took Social Security before their full retirement age, usually between 66 and 67 depending on your birth year.)

Benefit #2: Enjoy Work-Related Benefits

Employer-paid medical coverage is a major plus for returning to work. “Retiring before you are eligible for Medicare often means you’ll have to find health coverage on your own,” Hartman writes. “If you go back to work, you might find an employer that provides medical benefits.”

She also notes that employers who offer medical benefits are often able to offer other perks, including chances to contribute to a 401(k) with or without an employer match, paid vacation time, or access to a company gym or cafeteria. These benefits definitely add up.

Benefit #3: Make New Friends

Sociability is an often-unrecognized workplace benefit. Jennie Miller, the co-founder of an online health publication called Midss.org, told Hartman, “It is completely natural for your social circle to shrink when you get older.” This is typically because the circle of colleagues we built in our employment years is usually our closest community, and when we stop working, we lose access to the ease of those friendships.

But unretiring can bring that back. For example, as Hartman writes, “If you take a customer service job, you’ll have a chance to talk to other employees and clients. You could become part of a group that meets regularly and make friends who enjoy getting together outside of work.” On-the-job friendships offer a refreshing antidote to isolation and loneliness.

Benefit #4: Experience the Satisfaction of Helping Others

Jobs in certain areas of service, like tutoring students or assisting patients in a clinical setting, can go a long way to adding a sense of purpose to your days. This also applies to work in the growing non-profit sector.

Max Wesman, chief operating officer at an employee screening company called GoodHire, puts it this way: “Though it might seem strange for younger folk, work for retirees can be a great source of enjoyment and fulfillment. Knowing that you can contribute to something that you believe in, and without undertones of financial need or instability, allows you to truly lean into your role for all the right reasons.”

Benefit #5: Enjoy the Chance to Discover New Skills

Do you have to unretire back to the career you had previously? Hartman says not necessarily. In fact, it’s often more energizing to try something new.

“You can direct your return to work toward areas you find intriguing, even if they don’t line up with your experience,” she explains. “If you had a career in the tech industry, but were always interested in the arts, you might search for job positions at a local museum.”

Do you have a passion, hobby, or dream from your younger years that you’ve always wanted to try? There’s no time like the present! Hartman advises, “If you take an entry-level position, you might get the training you need while working. For jobs that require a certain skill set, you could start by taking online classes or getting the needed certification.”

Benefit #6: Improve Your Outlook by Staying Engaged

Contrary to popular belief, having loads of free time can actually be less motivating, not more. When you are career-focused, you constantly chase opportunities and absorb new information, and that tends to keep you mentally sharp.

California-based author and consultant Barry Maher says, “I always thought I’d retire as soon as I could afford it. And I worked hard, saved hard and invested carefully in order to become financially independent.”

But once Maher reached those milestones, he tried stepping away from his career – only to find that he simply loved his job too much to quit forever. “I realized just how much I loved doing what I’d been doing,” he says. “I can honestly say there’s really nothing I’d rather be doing.”

Benefit #7: Put Boredom Behind You

That unstructured free time in retirement can also come with an unintended consequence: boredom. And boredom has a way of feeding on itself. By contrast, getting a job can contribute to building a consistent schedule and rhythm to your day to day, and help alleviate that sense of boredom.

Max Wesman says, “It can be difficult to fill your time on a consistent basis [after retirement]. It comes as no surprise that some retirees wish to unretire, and they should not feel guilty or alienated for doing so.”

Benefit #8: Live Longer by Remaining Active

We’ve written plenty on this blog about how important physical activity is for longevity and general health, and Hartman agrees. Unretiring to an on-site job can work wonders for getting you up and moving!

“If you’re looking for ways to add movement to your days, an on-site job could be a great way to get in extra steps,” Hartman writes. “For jobs that are nearby, you might consider walking when the weather permits. Applying at a grocery store could lead to a cashier position that keeps you on your feet. These small ways might collectively keep you active and involved in the community, which you might see as the optimal way to spend your later years.”

My Life, My Plan, My Way: Get Started on the Path to Retirement Success

At AgingOptions we believe the key to a secure retirement is the right retirement plan – yet statistics show that 70 percent of retirement plans fail. That’s why for nearly two decades we’ve been dedicated to the proposition that a carefully-crafted, fully comprehensive retirement plan is the best answer to virtually any contingency life may throw your way as you age.  Our slogan says it all: My Life, My Plan, My Way.

When it comes to retirement planning, most people focus on one fairly narrow issue: money. Financial planning is an important component of retirement planning. However, people heading towards retirement often make the mistake of thinking that a little financial planning is all that’s required, when in fact most financial plans are woefully inadequate. What about your medical coverage? What if you have to make a change in your housing status – will that knock your financial plan off course? Are you adequately prepared legally for the realities of retirement and estate planning? And is your family equipped to support your plans for the future as you age?

The best way we know of to successfully blend all these elements together – finance, medical, housing, legal and family – is with a LifePlan from AgingOptions. Thousands of people have discovered the power of LifePlanning and we encourage you to the same. Simply visit our website and discover a world of retirement planning resources.  Make certain your retirement planning is truly comprehensive and complete with an AgingOptions LifePlan.  Age on!

Photo Credit: Scott Lewis, Flickr

(originally reported at https://money.usnews.com)

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