More Older Americans Are Un-Retiring. Should You?

Core Insights - A recent AARP survey indicates that 6% of older Americans returned to work within the last six months, primarily due to financial needs and boredom [1][2] Group 1: Reasons for Un-Retiring - Financial necessity is a significant factor, as many retirees find that Social Security does not adequately cover their expenses, leading them to seek additional income [2] - Boredom is another common reason, as retirees often experience a lack of structure and social interaction, prompting them to return to work for both engagement and financial benefits [3] Group 2: Benefits of Returning to Work - Working post-retirement can alleviate financial pressure and provide a safety net for unexpected expenses, such as home repairs [2] - Employment can also serve as a social outlet, helping retirees combat feelings of isolation and boredom while allowing them to fund more activities and entertainment [3] Group 3: Challenges of Un-Retiring - Retirees returning to work may face challenges such as the Social Security earnings test, which could result in benefits being withheld if income exceeds certain thresholds [4] - There is a risk of entering a higher tax bracket and incurring additional Medicare premiums due to increased income [5] - Finding suitable employment can be difficult for older individuals, who may face mobility issues and energy constraints, requiring time to find the right job fit [5] Group 4: Considerations for Returning to Work - Retirees should carefully evaluate the financial implications of returning to work, including potential increases in income, taxes, and impacts on Social Security benefits [8]