Unretirement is when people close to retirement age chose to continue working, or those who are already retired re-enter the workplace. While each person’s reasons are different, is now a good time to unretire?
Retire or Unretire? That is the Question
Usually, Retirement is seen as an attractive outcome for everyone who has been part of the workforce and employed for most of their lives. The permanent step away from work, and the stress that comes with it, means more time doing the things we love, which usually are put on the back-burner.
In recent years unretirement has become more widespread throughout society, and in the U.S., around 20% of employees at retirement age are still working. This figure has doubled since 1985.
“The percentage of retirement-age Americans in the labor force has doubled since 1985, from it’s all-time low of 10 percent in January of that year to 20 percent in February 2019. To understand who is continuing to work and why, we gathered data on retirement-age Americans’ incomes, health, and activities from the Census Bureau, Bureau of Labor Statistics, and Centers for Disease Control (CDC), finding:
The share of retirement-age Americans in the labor force has doubled since its all-time low in 1985. As of February 2019, over 20 percent of Americans aged 65 or older are working or looking for work, double the all-time low of 10 percent who were in the labor force in 1985.”
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Research shows that most’ unretirees’ return to work, not because of financial reasons, for example, not saving enough or because they suffered some kind of financial shock, but for other reasons. So, what were those reasons?
Most ‘un-retirees’ actually planned to stay at work or go back to work, whether full or part-time. They purposefully quit their full time or stressful jobs to try something more low-key or related to hobbies.
As people are living longer, healthier lives, there’s less pressure to retire, especially when jobs nowadays are far less manual. Therefore, more employment opportunities exist now than ever before.
Why Do Some People Unretire?
Extra Income – many people continue to work later in life because of their financial situation. As we are living healthier, longer, and more active lives, we also need an income to last. As retirement benefits diminish, the age at which people can collect full Social Security benefits rises, and with a massive decline in continuing pension plans, unretiring is becoming a new trend. During turbulent economic times, some retirees are forced to secure another income because their 401(k)-style plans that are linked with the stock market have performed poorly.
Unfulfilling Retirement– a large proportion of retirees go back to work because they are unfulfilled after Retirement. They have their finances in order, but they have unmet expectations of what they thought Retirement to be. Planning retirement is key to a smooth transition for what comes after employment.
Boredom – many retirees focus on what income they will get during Retirement and forget to plan what they’re going to do when they get there, what goals they want to achieve, and what they aspire to be. Therefore, it can come as a shock to be in an uneventful situation with no purpose in life. Plan for a retirement that is not just cash-rich but lifestyle rich too.
Other reasons why retirees opt to go back to work include to maximize Social Security benefits because they want more social connections, they want to keep themselves active, they love their job, or they may wish to continue in the same environment, or they have turned a hobby into a business.
Is Now a Good Time to Unretire?
Since March 11th, 2020, when COVID-19 reached pandemic status (according to the World Health Organization), Humana’s stock has increased by 12.5%, up from $328.22 to $369.09. YOY they have increased by 48%.
Humana expects to grow its Medicare Advantage membership this year by around 1.7% and therefore boost revenues.
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Are you approaching retirement and unsure about whether you should give up work or continue? Are you unretired and made some good decisions you can share with our readers? If so, please comment below.