May 06, 2024
The rising cost of living combined with restlessness is spurring older Americans to unretire. Are you retired? It could be time to get a job.
More than four million Americans will reach age 65 this year, a typical retirement age. But many of them will still work. About a third of Americans aged 65-69 have jobs, up from less than a quarter in 2000.
A 2023 Resume Builder report identified many reasons for retirees going back to work.
One is unforeseen expenses. That can mean caregiving costs for aging parents (the median cost of a home health worker increased 12.5% from 2020 to 2021). Similarly, retirees may be paying for adult children who failed to launch.
Another reason is the increasing cost of living. Groceries, auto expenses, insurance, and housing costs have increased significantly in the past three years.
Making it worse, retirees often underestimate their expenses. Those still working expect to spend 42% of their income on food, housing, and other basics. But the Resume Builder report said retirees spend 53% on those expenses.
Lastly, some retirees seek a sense of purpose that goes missing once they stop working. People may retire for a month and then start working, often taking hourly jobs. Of course, wage increases made that work more enticing. Some seniors are getting $16-$18 an hour for jobs that used to pay $7.50 per hour.
We have many clients who drive school buses. They work a couple hours in the morning, then a couple in the afternoon, getting paid $22 per hour. For them, this work is less about money (though the pay is nice) and more about a continued desire to contribute.
Many folks retire at 65 and live to 95. So, continued purpose and income all help.