Inflation is pushing people to 'cancel their retirement'

The skyrocketing cost of living, stuttering stock market, rapidly rising interest rates, which are at 40 year highs, and a tight recruiting environment have, as we know, resulted in many job flows. market. However, there is one big change underway that has only recently begun to gain traction, and that is the return of retired workers to the workforce.

It's a phenomenon called "non-retirement," and in fact, about 1.5 million workers have re-entered the workforce, according to recent data from the Labor Department.

The Federal Reserve Bank of St. Louis estimates that an additional 2.4 million Americans retired in the first 18 months of the pandemic as Covid concerns and corporate plans pushed them into retirement. early retirement. However, as costs continue to rise, many retirees are now returning to the workforce, while nearly half of those who planned to retire in 2022 are re-examining their options.

A recent Quicken survey shows that 48% of those reaching retirement age this year are reconsidering their options, while an additional 25% of 58-74 year olds who were not planning to retire this year are already planning to work longer and increase their contribution by €401,000, with 65% of them admitting that rising costs from inflation are their motivating factor.

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For people on fixed incomes, getting back into the job market can be a mostly monetary concern. Think tank and consultancy Age Wave, in collaboration with Edward Jones, found that certain behavioral factors may be at play.

The four pillars of retirement – ​​health, family, goals and finances – are equally important to retirees and non-retirees surveyed, and affect their decision to re-enter the workforce. Yet, exactly how they interact depends on personal circumstances that will determine the level at which the retiree wishes to return to work.

For example, a health crisis may require additional funding, while a return to work may lead to an increased sense of purpose, with the subsequent increase in income facilitating additional family time.

As the retirement age continues to rise among American workers (from 60 to 65 over the past 25 years), Age Wave found that 59% of retirees want to work in some way or not. of another. In fact, 22% want to work part-time, while 19% say they hope to alternate work and play, meaning a semi-retired workforce is here to stay.

For those considering delaying retirement, employers should focus on highlighting their retirement plans, educating workers, and encouraging them to save as much as possible while continuing to work full time. While for those returning to the workplace, employers need to remain open to part-time contracts, remote work and beyond traditional skills to see the added value that will contribute to part-time positions.

Another good news for older workers is that they make great employees. The Society for Human Resource Management reports that workers over 50 show greater commitment to work than younger employers, and 71% of employers also said that older workers show greater professionalism. Additionally, a 2015 AARP study found that older workers have lower turnover rates, helping to reduce overall training costs for new hires.

With all of this in mind, you might be...