Dear Commons Community,

Kat Aoki, a finance writer, has an article published today entitled, “More Americans are Unretiring.” It provides basic info on a growing phenomenon. Here it is in its entirety.

“Retirement used to be pretty straightforward: work for 40 years, get a gold watch and spend your days perfecting your golf swing. Today, more and more older Americans are ditching the traditional retirement script and heading back to work after initially calling it quits.

Meet the “unretirement” trend that has retirees dusting off their resumes and rejoining the workforce in record numbers.

The numbers tell the story

Nearly 40% of Americans ages 55 and older were employed in 2024, according to the Bureau of Labor Statistics — a striking shift that’s even more dramatic when you look at the oldest workers. Today, 2.8 million men over 70 are working in the U.S. — part of an extraordinary long-term transformation in which employment among Americans 75 and older has quadrupled since 1964.

To put this in perspective, 19% of adults ages 65 and older are employed today. In 1987, only 11% of older adults were employed in the workforce. By 2033, projections from the BLS show that 1 in 4 American workers will be 55 or older. The workforce has gotten seriously grayer.

What’s driving people back to work?

The reasons people are unretiring are as varied as the people themselves, but a few themes keep popping up, some surprising and not so surprising.

The numbers just don’t add up

Inflation has hit retirees on fixed incomes particularly hard. According to a 2024 survey, among retirees considering returning to work, 69% cited the increasing cost of living as their reason. Another survey that same year found that roughly 40% of seniors planned to find work due to insufficient Social Security cost-of-living adjustments.

For many retirees, the reality is that fixed incomes simply aren’t keeping pace with the rising cost of living, forcing difficult decisions about whether to return to work. Recent Social Security cost-of-living adjustments have been modest, with the 2025 COLA at just 2.5% — the smallest increase since 2020 — leaving many retirees struggling to keep up with rising costs

Work is an intentional choice

For many older Americans, staying in the workforce isn’t driven by financial desperation, but by satisfaction and purpose. While many are choosing to work not because they can’t afford to retire, others are taking on work simply because they enjoy it and find it meaningful — and don’t want to give it up.

Retirement feels too quiet

For some retirees, the issue is simply too much time on their hands. More than 40% of seniors say they’re contemplating going back to work due to boredom. After decades of structured workdays and clear purpose, retirement can feel surprisingly empty for some retirees. Some find that rejoining the workforce is a way to rebuild social connections and rediscover a sense of purpose.

Are you ready to go back to work?

Before you dust off your own resume, keep in mind these important financial considerations:

Check your Social Security math first. If you’re collecting benefits before full retirement age and go back to work, you could lose $1 in benefits for every $2 you earn over $23,400. The upside? Those benefits are recalculated once you reach full retirement age.

Consider the tax implications. Working income could push you into a higher tax bracket and increase taxes on your Social Security. Run the numbers and talk with a tax professional or financial advisor before making the leap.

Factor in work-related expenses. Commuting, work clothes, lunches out and other job-related costs can eat into your earnings (depending on your work, however, some may be tax-deductible). Make sure your take-home pay after expenses still makes financial sense.

Don’t forget about healthcare coverage. If you’re on Medicare, understand how employer health benefits interact with your existing coverage. You might be able to save money, or you could complicate things unnecessarily.

Start small and test the waters. Consider part-time or contract work first to see how returning to work affects your finances, energy and overall satisfaction before committing to full-time employment.

Bottom line: Retirement 2.0 is here

The old retirement playbook is getting rewritten. Whether driven by financial necessity or personal choice, millions of Americans are proving that turning 65 doesn’t have to mean the end of working life. In a world where people are living longer and healthier lives, unretirement is an interesting alternative.

I confess that I am one of the Americans 75 and older who still works. For me, it was simply a decision to stay active and the fact that I love what I do.

Tony