For most people, a financially secure and healthy retirement is the ideal. After years in the workforce, they finally get to relax with loved ones or a good book, take up new hobbies, or travel — all reasons retirement is often called “the golden years.”
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Yet a rising number of retired baby boomers are making a surprising decision: They’re “unretiring,” or going back to work in some capacity.
Though some of this trend is driven by economic factors — Kiplinger cites concerns about inflation, the increased cost of living and market volatility — many experts find that money isn’t the sole root cause. Boomers looking for more social engagement, mental stimulation or the chance to make a difference are reopening the door to the workforce.
Curious about what motivates “unretirement,” GOBankingRates investigated the causes driving this trend and how it could impact boomers financially.
1. They Want To Become Entrepreneurial
As more baby boomers live longer and stay active, they’re less likely to view their senior years as a retreat from professional life. According to Elizabeth Zelinka Parsons, JD, a retirement transition expert, lawyer and co-founder of consulting firms Zelinka Parsons and Encoraco, some boomers see retirement as a second act — the perfect time to start their own business.
“The old ideas of retirement are obsolete. Highly motivated entrepreneurs aren’t fading away — they’re reinventing themselves and becoming more valuable to the world than ever,” she said. “There are programs out there that offer a customized roadmap to planning your own encore. They help you build a second act that is meaningful, profitable and wholly accountable to the life you imagine.”
To Zelinka Parsons, these “second-act entrepreneurs” have unique advantages. Their time in the workforce has given them an up-close view of how to run an organization. Now, they get to apply what they’ve learned to their own business — only with greater control over the ultimate vision.
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2. They Want To Stay Connected
While it’s tempting to think of retirement as a nonstop festival of leisure, it can be lonelier than many expect. Boomers can find themselves feeling bored, isolated or missing their sense of identity. To fight that malaise, they find renewed purpose in going back to work.
American Senior Communities recognized this common occurrence in their write-up on the “unretiring” phenomenon:
“Returning to work offers a sense of purpose, a way to remain engaged with others and a chance to continue contributing their skills and expertise to society.”
For boomers with experience in specialized fields like education, healthcare or consulting, going back to work means staying current with industry trends while being valued for their expertise.
Zelinka Parsons adds that many boomers simply want to connect with younger peers in their fields.
“Retirees often express a desire to find new collaborators and communities with whom they can connect and share interests,” she said.
3. They’re Passionate About Mentorship
Zelinka Parsons recalls a client who found a passion for mentoring young businesspeople after retiring as the global chair of a banking and finance practice. He found great fulfillment in coaching future generations on how to make smart decisions, think clearly, use good judgment and solve problems.
This client could continue using his skills without taking on the intense pace of his prior role — a win-win for everyone, including his mentees.
“Retirees possess a wealth of experience, knowledge and skills honed over their careers,” Zelinka Parsons said. “Working with younger entrepreneurs provides an avenue to redeploy this expertise in a new and meaningful context.”
4. They Can Find Roles With Greater Flexibility
With the rise of remote work and more flexible schedules, boomers who don’t want to return to a traditional 9-to-5 office job — or be on their feet all day — can find roles that better suit their lifestyle.
Joseph Camberato, founder and CEO of National Business Capital, observes that flexible work options give boomers the best of both worlds: stimulating their minds without burdening their bodies.
“Work gives people meaning and purpose. It keeps people socially connected and the mind sharp,” he said. “[But today] you don’t have to go back into a grueling 9-to-5 full-time arrangement. There are so many flexible work options available today which have become very appealing and attractive for retirees.”
5. Yes, Money Does Matter
Although money isn’t always the primary driving force behind retirees going back to work, the financial factors identified by Kiplinger aren’t insignificant.
As boomers live longer, the fear of outliving their savings is real. Wanting additional financial security — even from a part-time or flexible job — can motivate many to reenter the workforce.
Still, boomers should consult a financial advisor to understand the potential effects on taxes, Social Security benefits, or Medicare coverage before making any career decisions.
Bottom Line
“Unretiring” may seem unexpected, but it’s not so surprising considering retirees’ desires for mental and emotional stimulation, entrepreneurial pursuits and the flexibility offered by remote work. However, because there can be implications for taxes and health care, retirees should speak with a financial professional before making any big moves.
This article is part of GOBankingRates’ Top 100 Money Experts series, where we spotlight expert answers to the biggest financial questions Americans are asking. Have a question of your own? Share it on our hub — and you’ll be entered for a chance to win $500.
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This article originally appeared on GOBankingRates.com: Why So Many Boomers Are ‘Unretiring’ — and Not Just for the Money
