Retirement on Pause: High Costs Push Older Americans Back to Work

Many older Americans are returning to the workforce due to economic necessity, according to a new AARP survey of adults age 50 and older. The survey finds that in the past six months, 7% of retirees have “unretired,” or reentered the labor force. Forty-eight percent said their primary reason for returning to work is to make money, with the desire to stay active a distant second, at 14%.

“Basic expenses are the number one reason older adults continue to work or job-hunt,” said Carly Roszkowski, vice president of financial resilience programming at AARP. “With the cost of living still high and many people worried that they don’t have enough saved for retirement, the trend of older adults working longer will likely continue.”

Among people 50-plus who are either working or looking for work, 41% say their main reason is to afford everyday living costs. Additional findings reveal concerns about the labor market:

• Nearly one-quarter (24%) of older workers are concerned about losing their job within the next year.

• More than two-thirds (67%) of older workers believe it would be difficult to find a new job right now.

• Over one-third (35%) cite age discrimination as the main reason for their expected difficulty, followed by health issues or a disability (22%), which is one of the main reasons (21%) that people give for choosing to retire.

“Older workers contribute a wealth of experience, skills and perspectives to the workplace, and many are eager to learn new skills and technology,” said Roszkowski. “For employers, tapping into their skills and expertise makes good business sense.”