What is Unretirement?
Retirement used to be the end of the career road, a chance to kick back, relax, and enjoy the fruits of decades of labor. But a growing number of people are rethinking that plan. According to research, nearly 1 in 10 retirees over 55 have unretired or are job hunting, with rising living costs (34%) and insufficient pensions (27%) driving many back to work. Enter: unretirement.
Unretirement is exactly what it sounds like. It refers to the trend of retirees returning to the workforce, either part-time or full-time, after previously stepping away. In recent years, especially following the COVID-19 pandemic and the cost of living crisis, there has been a notable increase in this trend. Baby boomers, in particular, are leading the way in the unretirement movement. But this isn’t just about money. It’s about purpose, identity, flexibility, and in many cases, staying connected in a rapidly changing world. Longer life expectancies are also a key driver, encouraging people to seek new opportunities and engagement after retirement.
Why Are People Coming Out of Retirement?
There isn’t one single reason people are “unretiring”. Instead, it’s a mix of personal goals, financial reality, social dynamics, the desire for meaningful engagement, and the importance of work life balance. Let’s break it down:
Rising Cost of Living
From housing to healthcare, everything is more expensive than it used to be, and inflation has eroded the purchasing power of retirement savings. Many retirees discover their savings don’t stretch as far as they hoped and find they cannot afford to maintain their desired lifestyle without additional income, prompting them to return to work to supplement their income.
Longer Life Expectancy
Longer life expectancies are a key factor shaping modern retirement, as people are living longer and healthier than ever. Planning for the future becomes more complex as individuals anticipate more years in retirement, requiring careful consideration of both financial and lifestyle needs. That means more years to fund and more time to fill, not everyone wants to spend 25-30 years in full retirement.
Mental and Emotional Fulfilment
Work gives structure, purpose, and social engagement, along with emotional benefits such as increased fulfilment and a sense of well-being. Returning to work can also help maintain social connections that are often lost in retirement. After a few years of retirement, some miss that routine or the sense of contributing to something bigger.
Flexible Work Options
With remote work, gig economy roles, consulting, and flexible work arrangements that can accommodate retirees' health and lifestyle needs on the rise, it’s easier than ever to work on your terms. Retirees can pick and choose projects that suit their interests and schedules. When exploring flexible work arrangements, it's important to consider your health to ensure the work aligns with your well-being and personal goals.
Who Is Unretiring?
Unretirement isn’t limited to any one demographic, but some groups are more likely to make the leap. Recent retirees of various ages are exploring unretirement, seeking new opportunities and ways to stay engaged.
- Professionals with transferable knowledge (e.g., consultants, educators, managers)
- Skilled tradespeople who can freelance or contract
- Retirees from physically demanding jobs who switch to less strenuous roles
- Older employees and workers from different backgrounds who are returning to the workforce for financial or personal reasons
What Kinds of Jobs Are Popular for Unretirees?
People coming out of retirement tend to seek roles that are less stressful and more rewarding on a personal level. Common choices include:
- Part-time retail or hospitality work
- Freelance or consulting in their previous field, either by returning to their previous career or exploring new opportunities that align with their interests
- Nonprofit or mission-driven work
- Teaching, mentoring, or coaching
- Seasonal or project-based roles
For example, a retiree who spent decades in finance might choose to work part-time at a local museum for personal fulfillment, or consult for startups to stay engaged in meaningful work. In short, they want work that fits their lifestyle, not the other way around, with meaningful work being a key motivator.
Is Unretirement a Good Idea?
It depends on the individual, but in many cases, yes. Before deciding to unretire, it’s important to evaluate your financial situation and review your retirement plan to ensure the move aligns with your long-term goals. Employers are also increasingly supporting retirees by offering flexible work arrangements, training opportunities, and improved benefits to help make the transition back to work smoother. Here’s why:
Pros:
- Extra income
- Mental stimulation
- Social engagement
- Renewed sense of purpose
- Emotional benefits, such as increased fulfilment, social connection, and improved well-being, from staying engaged through work.
- Potential to increase social security benefits by delaying full retirement or continuing to work, which can positively impact long-term financial security.
In summary, unretirement can provide significant benefit to both individuals and employers, offering financial, emotional, and organizational advantages.
Cons:
- Possible impact on Social Security or pension benefits
- Difficulty re-entering a tech-evolving workforce
- Age discrimination in hiring
- Challenges in finding suitable employment after retirement, as re-employment opportunities may be limited or competitive
For some, the rewards outweigh the downsides. For others, it might make more sense to volunteer, consult occasionally, or pursue creative endeavors instead.
The Broader Trend: Why Unretirement Matters
The concept of a “linear career” is becoming outdated. With people working into their 70s and beyond, unretirement challenges the traditional narrative around aging and productivity.
Companies, too, are taking notice. There’s growing interest in tapping into the skills, experience, and emotional intelligence that older workers bring. Some businesses are creating returnship programs and flexible part-time roles specifically designed to attract retirees back into the fold. A company can support older workers by offering tailored pay, loyalty rewards, and benefits that recognize their experience and encourage them to remain or re-enter the workforce. Supporting older employees through digital skills training and inclusive policies helps foster a positive work environment and ensures their well-being.
There is a strong business case for supporting and retaining older workers, as fostering an age-inclusive workplace and implementing supportive policies can enhance overall business performance and competitiveness. An investment adviser can play a key role in helping both retirees and businesses navigate the unretirement trend by providing personalized financial advice and investment management services.
This shift also has broader economic implications. A rising participation rate among older workers can help offset labor shortages and ease the burden on social support systems.
Tips for a Successful Unretirement
Thinking about returning to work after retirement? “Unretirement” can be rewarding, but it helps to approach it with intention. Here are some tips to make your comeback successful:
- Clarify Your "Why": Figure out if you're returning for financial reasons, social interaction, personal fulfillment, or all of the above. That helps guide the kind of role you pursue.
- Update Your Skills: Brush up on tech tools or industry trends. Even a basic refresher course can boost your confidence and appeal.
- Start Small: Consider volunteering, freelance gigs, or temp roles before jumping into something big.
- Check the Financial Impact: Talk to a financial advisor about how additional income could affect your taxes, Medicare premiums, or retirement benefits.
Unretirement Frequently Asked Questions
Q: Why should a company consider hiring retired workers?
A: Retirees bring deep experience, institutional knowledge, strong work ethic, and often need minimal training. They can also mentor younger staff.
Q: Are there legal concerns when hiring older workers?
A: Employers must comply with the Age Discrimination in Employment Act (ADEA). Companies and HR professionals need to ensure that their your hiring practices are inclusive and age-neutral.