When Should You Unretire?

We’ve all watched quarterbacks and basketball stars hold press conferences to announce retirement, only to see them come back to the playing field to recapture their glory days. We’ve heard actors declare they’re done with Hollywood, then watched them grace the silver screen a few years later.

Celebrity start-and-stops make headlines, but when you, an ordinary citizen, walk away from the workplace and then change your mind, it can feel just as seismic to those in your orbit. It affects your finances, your family and your future.

If you’ve retired but find yourself rethinking that life choice, read on for inspiration and ideas that may help you sort it all out.

 

Why Are People Unretiring?

Maybe you started tapping your trusty 401(k) but are starting to wonder if the money will last. (Those required minimum distributions from age 70½ or 72 onward can take their toll over time.) Or perhaps the retirement you dreamed of leads to daydreams about other ventures. Inflation woes and healthcare costs could have upended your careful retirement budget. Or maybe you just miss using the expertise you spent years developing. Don’t worry. If you want to return to work, you didn’t lose the retirement game; you just may decide to play it a little later.

Factors such as the soaring cost of living, a hot jobs market and less fear of COVID-19 certainly contribute to the trend of unretirement. Turns out, returning to the workplace is actually not a new phenomenon. In fact, CNBC reports that the percentage of retirees returning to the workplace is back to what it was prior to the pandemic: 3.2%.

Whatever the reason you’re feeling that retirement isn’t right for you anymore, reframe the concept. Think of unretirement as a reimagining of your future—and maybe a reimagining of your finances, too. During the pandemic, many workers rethought their jobs, their roles and their lives. Reevaluating everything led to clarity of purpose and reorganized priorities. Workplace futurist and personal finance expert Kerry Hannon calls the self-reflective process many underwent an “inner MRI” that people conducted on themselves. “They asked, ‘What do I really want to do?’” says Hannon, author of In Control at 50+: How to Survive in the New World of Work.

Many walked away from work that they suddenly realized felt less satisfying in the midst of surviving a global pandemic, but as time passed, they realized they may need some cash flow or even just something to do every day. Suddenly, the workplace has regained its allure.

 

Can You Unretire?

Absolutely. More fluid than ever, retirement isn’t seen by everyone as the paragon of existence it once was, complete with the gleaming gold watch in a velvet case. Rather, it’s a goal that you plan for and save toward. Simply make a return to work part of that evolving plan. Whether you start a new gig to earn an income, to feel less bored or to make social connections, factor in the financial implications. For instance, will you need to consolidate 401(k)s or change your investment strategy? Check our list below of financial factors to consider. But first you have to figure out what kind of job you want.

 

Finding the Perfect Gig

As people consider what to do in their unretirement years, many return to their old company or role. They may realize the job they already know how to do has a pretty big up factor—a salary. Others reinvent themselves or take new paths. Work through why you want to unretire to uncover your options.

The good news? You have years of experience, and the post-pandemic workplace is brimming with opportunities. “You can reenter the workplace on your own terms,” Hannon says, pointing to contract work, more work-from-anywhere possibilities, a trend toward midlife entrepreneurship and the global marketplace. This is your chance for a workplace reset and time when you can negotiate vacation time, your hours, your salary and work-life balance demands. 

Think about the concessions you’re willing to make as you reenter the workplace, too.

Hannon herself has learned to adapt herself. Now in her early 60s, she recently took a full-time role at Yahoo Finance, where she has had to learn to use Google Docs to work with her team. It’s a minor tech change for her that’s easy to learn, but it’s a glitch in what she’s used to and a change in habits. You’ll encounter that sort of change, and Hannon recommends taking a class or learning whatever new skill you need to prepare for a workplace where technology changes fast.

 

Financial Checklist for Unretirement

Start here as you rethink your work-life balance in retirement.

• Calculate future retirement income. If you’re reentering the workplace because you need to supplement your retirement savings, it may be time to recalculate how much money you need to support the lifestyle you want in retirement.
• Salary and other nonnegotiable requirements. Due to the strong labor market, you can likely command more money, a flexible schedule or the vacation time you’ve always dreamed of having.
• Social Security implications. Returning to work can impact your Social Security benefits. AARP reports that if you’ve taken Social Security benefits in the past 12 months, you can apply for what’s called a “withdrawal of benefits” to stop those payments from coming and preserve your benefit. If it’s been more than a year, you cannot withdraw from the program, but at age 70, you can voluntarily suspend your benefits to help play catch up. You’ll earn delayed retirement credits that increase your Social Security benefit once you start taking it again.
• Monthly budget. Enjoy any new income and be careful when using retirement funds as seed money for any new ventures. Try not to draw down more than what you need from retirement accounts, but don’t forget to pull at least your RMDs from IRAs if you’re 70½ and from 401(k)s if you’re 72 (or 70½ if born before July 1, 1949).
• Healthcare coverage. Look closely at any new employer healthcare coverages and at how Medicare may cover your needs. Hannon warns that if you go the independent contractor route, it’s key to maintain discipline about your health insurance needs to make sure you have it when you need it.

 

Unretirement Job Search

Getting back into the world of working means updating that resume, but don’t just proof the old one. Investigate resume trends and refresh your presentation so it doesn’t look outdated. “Ageism is alive and well,” warns Hannon, and an older-style resume make some discriminatory recruiters pass yours by.

Next, use that virtual Rolodex known as LinkedIn, where you may have accrued hundreds of contacts over the years—another advantage to being a “seasoned” worker of a certain age. Make sure to update your bio and list of skills—and turn on the LinkedIn “open to work” feature to signal recruiters you’re back!

When you find a job lead, make your cover letter candid. Be bold about why you want this job and why you’re qualified. You can even address why you want to come out of retirement to take the role.

Take advantage of online job search tools, such as the AARP job search tool. From careerbuilder.com to consultants who specialize in finding remote work options for people, the internet makes it easy to look for a broad array of opportunities near and far. Hannon notes that contract work can help you disguise your age if you’re worried that ageism could be a factor.

 

The Final Answer

How to answer the question of when to unretire? You’ll know by looking at your financial reality in retirement or by feeling it in your gut. Whether it’s the financial boost you need or the lure of a new direction for renewed purpose, you’ve spent this much time reading about unretiring. So, it might be time to do just that!

 

Jennifer Chappell Smith has more than 25 years’ experience writing about lifestyle, personal finance and more. She and her husband live in San Antonio, TX, where they’re raising three boys, ages 14, 12 and 11.

 

Consider one of Synchrony’s savings products—either and IRA Money Market Account or an IRA CD— to help you save additional funds for your retirement years.