Why More Boomers Are ‘Un-Retiring’ and Choosing to Keep Working

Rethinking Retirement: Staying Active and Secure

For many baby boomers, retirement looks different than it did for previous generations.

While retirement traditionally meant stepping away from work entirely, a growing number of boomers are choosing to stay in the workforce or return after retiring.

This trend, often referred to as “un-retiring,” reflects changing financial realities and evolving attitudes about work and retirement.

Why Are Boomers Working Longer?

There are several reasons why more boomers are delaying retirement or continuing to work part-time:

1. Increased Longevity

People are living longer than ever before. The average life expectancy for someone reaching 66 today is 87, with many living well into their 90s. This extended lifespan means retirement savings need to last longer, prompting some to continue working to ensure financial security.

2. Decline in Defined Benefit Pensions

The transition from defined benefit (DB) pensions to defined contribution (DC) pensions has shifted the responsibility of retirement planning onto individuals. Without the guaranteed income of a DB pension, many boomers must carefully manage their savings, and continuing to work can help bridge financial gaps.

3. Rising Costs and Insufficient Savings

Many boomers are entering retirement with less savings than needed. Rising costs, particularly for renters, can strain budgets. Additionally, some boomers continue to financially support their children and grandchildren, adding to the pressure to maintain an income.

4. Flexibility in Work Options

The rise of part-time and flexible work arrangements has made it easier for boomers to stay in the workforce. Some are choosing to work fewer hours or take on seasonal roles, allowing them to balance work with leisure and personal pursuits.

5. Mental and Social Benefits

Work provides more than just financial rewards. For many, staying engaged in meaningful work offers a sense of purpose, routine, and social connection. Studies show that working longer, especially by choice, can improve mental health and reduce the risk of later-life depression.

Embracing the New Retirement

For boomers considering their retirement plans, it’s important to focus on flexibility and sustainability. Here are some steps to ensure a balanced and fulfilling retirement:

• Plan for Longevity: Factor in the possibility of living longer than expected when creating a financial plan.

• Consider Part-Time Work: If full-time work feels overwhelming, explore part-time or consulting roles to maintain an income while enjoying more free time.

• Reassess Spending: Identify areas where spending can be adjusted to make savings last longer.

• Prioritize Health and Wellbeing: Use this phase of life to invest in physical and mental health, ensuring a vibrant and active lifestyle.

Finding Your Path

Retirement is no longer a one-size-fits-all journey.

Whether you’re working to boost your savings, staying engaged for personal satisfaction, or exploring new opportunities, the key is to create a plan that works for you.

By embracing this new vision of retirement, you can find a balance that supports your financial goals and personal fulfillment.