Unretirement on the rise as millions of Americans return to work

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Is he really at it again? Despite ruling out an NFL encore appearance this fall, rumors continue to circulate among fans that Tom Brady is flirting with the idea.

While the sports star’s plans remain unknown, he has become a highly visible ambassador for unretirement among the broader public after a recent video posted on the New England Patriots’ Twitter feed.

More and more Americans are following Brady’s game plan.

According to a recent Paychex survey, one in six American retirees is considering getting off the benches and back on the professional field. Aspiring unretirees cited several key drivers, with “personal reasons” (57%), “needing more money” (53%), “getting bored” (52%), “feeling lonely” (45%), and “inflation” (45%) making up the top five reasons for unretiring.

The shift coincides with a tightening labor market as demand for workers nationwide continues to run high. Older Americans who are thinking about this phenomenon of unretiring should consider perspectives from financial advisors on how to transition back into the workforce at a late stage of life.

Retirement 2.0

Unretirement may strike some as odd. Many cultural myths surround retirement. It’s assumed most people want to retire as soon as possible and quit the rat race.

However, recent years have seen a paradigm shift in how retirement and the post-work phase of life have evolved and diversified into a multi-faceted stage of life.

“Retirement is no longer a static concept, but a dynamic phase of life…the evolving landscape of retirement reflects changing perspectives and longer lifespans,” says Jorey Bernstein, CEO of Bernstein Private Wealth. “Retirement no longer signifies the end of one’s productive journey; instead, it has become a stepping stone towards new opportunities. Some retirees choose to ‘unretire’ in pursuit of financial stability, personal fulfillment, and social engagement,” Bernstein adds.

“Unretiring” may be catching on now as a buzzword, but don’t expect it to be a passing fad. The trend has demographics on its side.

The number of elderly workers is predicted to surge through the 2020s. According to the U.S. Bureau of Labor Statistics, the workforce participation rate for senior citizens of all ages will increase by several percentage points. Nearly a third of all adults aged between 65 and 74 and 11% of those aged 75 and older are expected to be working by 2031.

Matter of Choice

Not all unretirees are in the same boat. There may be a split in the unretiree demographic between those who can unretire and those who have no other choice but to go back to work. As Paychex’s survey noted, almost as many people said they were taking up work again due to boredom as to economic necessity.

The newly-retired academic who teaches Latin to keep his mind sharp is different from the 70-year-old woman stacking shelves as a Walmart employee to pay off her spiraling medical bills.

For some, it may be fulfilling a vocation, but others, either due to a lack of planning or unfortunate life circumstances, come to the painful realization they cannot afford to stop working. Those with a degree of financial security will have more freedom to choose, and whether that job generates extra money.

If you’re financially independent, focus on what you’re good at, love, and the world needs. If that happens to earn income, all the better,” says Kevin Estes, Financial Planner and Founder of Scaled Finance. “I suggest everyone explore their passions. What energizes you? How could you do more of what you love and less of what you don’t,” he adds.

There are many part-time jobs in retirement many consider ideal, from consulting to tutoring, and from tour guide to security officer. Whether it gives back to the community or provides a little exercise, these positions can be a good fit for a newly retired senior.

Still, unretirees need to keep their wits about them. Regardless of which field they enter (or re-enter), they must adapt to new realities.

“Returning to the workforce after retirement requires a strategic approach,” says Bernstein. “Updating skills, networking with former colleagues, and exploring part-time or flexible work options are key steps in navigating this transition successfully.”

The increase in the numbers of unretirees is turning our traditional assumptions about retirement on its head and forcing a rethink of how we should spend the later stages of life. The shifting demographic trends and evolving nature of the workplace are powering the phenomenon. As people embrace longer lifespans, seek new purposes, and adapt to technological advancements, older workers are redefining the workplace. There can be many pathways to unretire, but those with the financial means will be in a better position to unretire.

As with many things in life, we are much more likely to get satisfaction from something — even work — if we feel we have the freedom to choose it on our own terms.

This article was produced by Wealthtender and syndicated by Wealth of Geeks.

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