Why are Retirees Returning to Work

Gone are the days many baby boomers thought would bring them rest and relaxation. Most Boomers thought retirement would allow them to take it easy after working most of their adult lives. Retirees are living longer which means their retirement funds are no longer adequate. Often, returning to work is the only answer for many who thought they were going to be able to relax and do all those things they had put on hold until they retired. They were looking forward to traveling and spending more time with their families. 

Retirees have relied on pension plans to carry them through retirement. Many companies have stopped offering pension plans and the only benefits many retirees have are their Social Security benefits. Some retirees have elected to retire before they turn sixty-five and had the luxury of relying on access to their employer’s health plan. They planned to convert to Medicare after turning sixty-five. However, many companies are now requiring retired staff to pay for health insurance premiums. When adding the cost of medication to the health insurance premiums many retirees are unable to make their payments. 

Another source of income was lost when stocks took a nosedive and investment money disappeared. Many retirees don’t have the time or the money to try and rebuild their investment funds. This is forcing them to return to work to find different sources of income. 

Some retirees plan on returning to work even before they retire. They are keeping their options open and they know retirement may not be all it’s cracked up to be. During their first year of retirement they often feel they aren’t contributing and returning to work is the only answer. Deciding to retire while children are still living at home or attending college can also contribute to money worries. Those who have already retired with children still at home are thinking they may have jumped the gun and are considering re-entering the workforce. 

It seems the three main reasons retirees are returning to work all have to do with money. Many found their personal finances were inadequate. Others found they couldn’t handle the increase in healthcare expenses. The third reason is the increase in longevity. The average lifespan has increased by ten years and retirees have to figure out a way to fund those extra ten years. Social Security will be around for awhile, but it’s possible there may come a day when it’s not an option.