More retirees are returning to jobs amid falling confidence in retirement

Across the United States, rising living costs are causing people to delay major life decisions, and retirement is increasingly among them.

Moneywise says a growing number of older Americans are “unretiring,” meaning they are leaving retirement and rejoining the workforce. According to the U.S. Bureau of Labor Statistics, 18.4 percent of Americans age 65 and older are working, while the Federal Reserve says another 16 percent of people who identify as retired have worked recently.

The Washington Post attributes much of this trend to expenses. Medical bills, insurance costs, and inflation-driven price increases on everyday necessities are pushing some retirees back into paid work.

Debt is also a factor. Moneywise notes that many workers enter retirement without enough preparation. Bradly Stevens, vice president and wealth advisor at BAS Financial, told the publication that the retirement plans he reviewed showed an average balance of only $68,000.

“They never adjusted their spending for a world without a paycheck, or they underestimated taxes on retirement withdrawals, or they retired into a down market and watched sequence-of-returns risk do real damage in the first few years,” he said.

Almost half of Americans who plan to retire do not believe they will be able to do so comfortably, and about one-third say they will not have enough money. In addition, a BLS measure of inflation for people age 62 and older found that prices rose by roughly 23 percent over a five-year period.

“People are adjusting budgets, revisiting financial strategies, and looking for ways to stay on track,” Sean Madgett, vice president and head of planning and practice solutions at New York Life, said in a statement. “At the same time, the sharp decline in retirement confidence suggests many Americans are questioning whether those efforts will be enough to achieve their long-term goals.

“That’s where having a comprehensive financial strategy, oriented to personal goals, can help provide greater clarity and confidence.”

The reasons are not only financial. AARP says many older adults return to work to stay socially connected and find a renewed sense of purpose. F&G Annuities & Life, Inc. also found in an annual retirement survey that more people are embracing greater flexibility on the road to retirement.

“Americans, no matter what their savings or income bracket, aren’t simply reconsidering when they retire; they’re reconsidering what retirement itself looks like,” said Conor Murphy, CEO and president of F&G, in a release. “For some, that means choosing to work less, transitioning gradually into retirement or even reinventing themselves in a new chapter, while for others, original plans are giving way to financial realities.

“As retirement becomes more flexible and individualized, it’s important to provide retirees and pre-retirees with accessible planning solutions to evolve with changing needs and allow for greater certainty and confidence along the way.”