Creative Aging: The Great Unretirement
“You are never too old to set a new goal or dream a new dream.” —C.S. Lewis
During the pandemic, 8 million people lost or left their jobs. The percentage of retirement-age people in the work force dropped. But, thanks to a waning pandemic, a thriving job market, and a soaring cost of living (8.7 percent in 2022), retirees are returning to work in what some call “The Great Unretirement.”
The percentage of retirement-age people now in the workforce has almost reached the pre-pandemic levels. Twenty percent of them are currently working. In one survey, 68 percent of those who retired during the pandemic said they were considering returning to work.
Twenty-seven percent of retirees returning to employment say they are doing so for financial reasons. Some feel the pinch of inflation. Others realize that their retirements are underfunded. They have not saved enough to last through an extended retirement period.
Some retirees choose jobs in grocery stores, bookstores, or movie theaters, which offer them discounts on merchandise, and so they save on expenses.
Not everyone returns to work for financial reasons, however. Sixty percent of those returning to employment say they are looking for something to do. Endless recreational time looked good from a distance, but some retirees find themselves bored with too much time on their hands. Some want a way to feel useful. Others like the idea of doing something and getting paid for it.
Although people rarely think of physical health as a reason to return to work or continue working, there is evidence of its physical benefits. A job in which you are physically active can contribute to fitness and weight loss. Working is more beneficial to health than watching TV all day every day. One study reveals people who work one year beyond age 65 have an 11 percent lower risk of death than those who retire at 65.
Employment can provide needed social interaction that can lift your spirits and build a support system. And there is evidence that having an active social life contributes to healthy aging.
A job also reduces cognitive decline, helping us to stay mentally sharp. It provides an opportunity to both mentor and be mentored. A study of nearly half a million people in France revealed that for each additional year of work, the risk of dementia was reduced by 3.2 percent.
People who return to a job are also contributing to the greater good through their work, and it helps boost both the economy and Social Security. Forty-two percent of retirees say having a purpose is crucial to them. Often they choose to work for nonprofits, in the educational system, or as coaches.
Some retirees turn a lifelong hobby or personal activity into a part-time income. Others leverage their previous job skills in new jobs or become consultants in their area of expertise.
In a robust job market, employers value mature staff members, who tend to be skilled at problem solving, as well as dependable and loyal. The options of part-time employment and working from home have both expanded. Some people who are unretiring appreciate avoiding the hassle and cost of commuting to jobs. For others the social benefit of in-person work outweighs the cost.
If you retired before reaching your full retirement age, however, returning to employment may reduce your Social Security income. It may also put you in a higher tax bracket. Consult a financial adviser about the financial impact of returning to work if you have not yet reached full retirement age.
Unretiring is not for everyone, but some older adults find it adds to their lives financially, personally, and socially.
Adapted from Creative Aging by Carol Van Klompenburg, published 2023, available from Amazon and for Pella-area residents at Pella Books, the Curiosity Shop, or directly from Carol. Carol has an MA in theater arts and is available for reading performances of her writing on aging, moments in her gardens, memories, and other topics.