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It’s not uncommon for many retirees to have part-time jobs or do volunteer work. Either are fine ideas because for senior citizens, many of whom are retirees, keeping their minds sharp upon exiting the traditional workforce can be helpful in warding off Alzheimer's disease and dementia.
Then there are the retirees that unretire, meaning they reenter the workforce in search of full-time work or close to it. There are multiple reasons why a retired client might opt to shed that label. Perhaps they’re just bored. Maybe they’re concerned about their retirements savings, worried about outliving those savings or they want to bolster long-term care finances.
Those are valid reasons for a retired client to go back to work full-time and data suggest that movement is afoot. A recent survey conducted by ResumeBuilder.com indicates that one in eight seniors (13%) that are retired expect to start working again over the next 12 months. Not surprisingly, higher cost of living is the most widely cited reason for going back to work after spending some time retired.
The study features other data points that are notable to advisors working with pre-retirees and those in retirement.
Being Proactive Essential in Retirement Planning
It’s a message for both advisors and clients: the time to start planning for retirement or shoring up retirement savings is now. Not tomorrow, next week or next year. Consider the following from the ResumeBuilder poll.
Twenty-two percent of seniors are currently working and of that group, 38% don’t plan to retire for at least another five years. Forty percent of working seniors were previously retired. Indeed, much of the return to work movement is attributable to higher living costs, but there are other, more positive reasons why retired folks go back to work.
“On the other hand, some retirees return to work to combat feelings of boredom or isolation, seeking the social interactions and camaraderie that an in-person job provides. These individuals find fulfillment in office environments where they can build relationships and feel part of a team,” says Resume Builder’s Chief Career Advisor Stacie Haller.
Interestingly, 26% of respondents to the ResumeBuilder survey said they’re very enthusiastic about returning to work while 53% put themselves in the somewhat enthusiastic camp. Either way, there isn’t a sense of dread for many seniors when it comes to getting back to work.
Clear Reasons for Advisors to Be Involved
For those that are on the fence about hiring an advisor, retirement planning could easily be the deciding factor. Said another way, when stripping out enjoy working and boredom, the other reasons why retirees go back to work are, with one exception, entirely avoidable with proper planning from the right advisor.
According to ResumeBuilder, those reasons are inadequate retirement savings, rising cost of living (the one that’s not avoidable, real estate costs and too much debt.
Bottom line: some folks want to work as long as possible. Others don’t. Both cohorts should be working with advisors to optimize their visions of retirement.