Bidenomics: retirees forced back to work

Sixty-nine percent of people of retirement age cite inflation as the main reason for continuing to work.

The rate at which retirees are returning to work is one of the highest since 2017. As of July of this year, 3.2% of workers who retired in 2021 are currently employed. In addition, according to BMO's Real Financial Progress Index, inflation and rising consumer costs have forced a quarter of Americans to delay retirement.

Indeed's head of economic research, Nick Bunker, told Fox Business that the number of retirees returning to work is reaching an all-time high. From 2017 to 2019 an average of approximately 3% of retired workers ended up with a job.

Wells Fargo's head of wealth management and investment advisory, Michael Liersch noted some trends among people who have decided to return to the workforce: Some retirees are moving into jobs that require them to work in a jmore demanding environment, while others have decided to return to the labor market. A portion of retirees go on to perform less demanding jobs in their former company or business. Other retirees choose to do consulting work on an hourly basis for other companies. And some decide to return to work full time, either at their old company or at a new one, although they may downgrade in terms of their role.

Although many retirees are returning to their familiar area of work, another trend Liersch observed is that seniors are taking the opportunity to reevaluate what they are passionate about when they think about returning to work. In some cases, he told Fox Business, it pushes them in a totally different direction.

Many are thinking of not retiring

According to a ResumeBuilder survey, 69% of people of retirement age cite the rising cost of living as their primary reason for continuing to work.

The survey also reveals that 83% of respondents considering retirement are concerned about their finances. In addition, 39% say their daily expenses have increased somewhat in the past three months, while another 39% say their expenses have increased a lot. Another cause for concern is that 19% also state that their retirement savings are too low when it comes to covering their living expenses.

The non-retirement rate is at its highest point in years, but there is  potential for it to keep rising. Inflation rose to 8.5% in July and remains near its highest level in decades, which may cause many adults nearing retirement to change their plans.