As retirees rethink the future, many are heading back to work

Once an employee leaves the workforce, that no longer means their work-life is over forever. 

In 2024, one in eight retirees plans to go back to work, due to factors like high cost of living, inflation, a lack of savings and even boredom, according to a survey by ResumeBuilder.com. Of those planning for their future now, a third expect to work part-time, according to Flexjobs. 

But reentering the workforce after any time away takes time and careful consideration. Due to the speed of technology and other in-demand workplace skills, many returning retirees may find themselves unprepared for the realities of today's work world. 

Start With An Honest Self-Assessment

"The first thing they should do is self-assess their skills, interests and values to meet the challenges of the new work environment they're trying to enter," says Jake Canull, regional director of the Americans at Top Employers Institute. "Consider being more flexible to different types of working arrangements, too, like consulting, freelancing, gigwork or part-time."

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Finding the right fit comes with both financial and psychological benefits for older workers, especially as the majority of Americans heading toward retirement feel woefully unprepared. Only a quarter of employees feel they're on track for retirement, according to data from the Federal Reserve, and of those who are currently retired, 68% are afraid their savings won't last their lifetime, according to Schroeders. 

A return-to-work can support well-being for older workers, too. A study in the academic journal Economics and Human Biology found that retirees who returned to the office reported better mental health and less feelings of loneliness than those who remained retired for the long-term. 

"Reentering the workforce can provide retirees with a sense of purpose and fulfillment, especially for those who miss the routine of their younger years," Canull says. "It's also an additional income stream to support their retirement funds, which may not be enough to cover their living expenses comfortably." 

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Overall, returning to work after retiring is a win for employers, too. As employers deal with the influx of younger employees, having a multi-generational balance of staff can help train and mentor workers, and create a more inclusive work environment for everyone.

"Older generations often possess valuable industry experience and knowledge which they can share with younger team members," he says. "This knowledge transfer helps bridge the generation gap and ensures that essential insights are passed down to the next generation." 

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Explore A Flexible Work Environment

Yet employers will need to keep in mind the unique needs of people who have already experienced life outside of their career, Canull says. Older workers might want more flexibility in their schedule, or see their return to work as temporary. Offering options is beneficial for everyone, Canull reminds employers. 

"Allowing for flexibility in where employees work, flexible hours, and job-sharing opportunities ensures everyone can maintain a healthy work-life balance," he says. "By fostering an inclusive environment, HR professionals and leaders can help team members feel valued and respected regardless of age. Encourage open dialogue that celebrates the unique strengths and experiences each generation brings to the table."