Retire A Little. Or Unretire. You Have Options!

By Karen and Erica

Unretire? Something to think about.

In the 1950s, when retirement in the U.S. was invented, most retirees were men; many worked in jobs entailing physical labor; life expectancy was in the 60s; and retirement meant leaving the working world completely and forever. So it made good sense to stop working altogether in one’s early 60s, and to have a few years of fun in the sun before retiring from life itself.

But does this still make sense? No. We agree with BlackRock chair Larry Fink:

In his highly anticipated annual letter to investors, the 71-year-old billionaire said that “it’s a bit crazy that our anchor idea for the right retirement age—65 years old—originates from the time of the Ottoman Empire.”

Now, unlike in the time of the Ottoman Empire, many retirees are women; many worked in jobs that required mental, not physical, exertion; and life expectancy, at least for people with higher education and a decent income, is decades longer. But the retirement age has not changed, and retirement remains, in many people’s minds, a status requiring a complete break with work. So, unlike those in the Ottoman empire, we are supposed to be disconnected from the world, unproductive, and without purpose, for decades.

Those of us, especially women, who have a thirty year runway, who love being connected and productive, who have no interest in sitting in a field watching flowers grow for thirty years—we are looking for something different. Because we are used to doing things for ourselves, we are creating our own paths to a new idea of retirement.

Many are opting for something other than total retirement.

This debate is not about either fully working or being fully retired. Many in-between options are possible, especially since working from home has become routine. You can create your own schedule with part-time work, project-based gigs, or consulting – remotely or in person.

“There are ways to step into retirement without having to do a full stop,” [Judith Ward, a vice president and thought leadership director at T. Rowe Price] said. “The employment landscape has changed – and now you can do it on your own terms.”

We love this idea. It reflects the principles behind our vision, one we called the Wendy Project. Retire, and ascend to a new position—not in the line of fire, but to the side, using your experience to move the mission forward faster by giving less experienced workers valuable insights based on your decades of experience.

Another concept gaining force is unretirement—after finishing a career, going back to work, maybe different work and maybe not full time, but activity that might be paid and certainly has structure. Many people who retired early due to Covid have taken this approach—some to stay engaged, and some for needed extra income.

The average COLA over the last 10 years comes out to 2.6%, making next year’s increase significantly higher than usual. Still, a recent survey of Americans aged 62 and older who collect Social Security by law firm Atticus found that 62% of retirees are dissatisfied with the 2024 COLA. Almost 40% of respondents said they plan to seek employment as a result.

That tracks with earlier research from T. Rowe Price that found 1 in 5 retirees have “unretired” since the mass retirement surge of 2020 and 2021, meaning they’ve returned to work full- or part-time. Nearly half of that group said they needed to return to the workforce for financial reasons. 

And some need the non-financial benefits of unretiring.

A good 40% did say that they’d look to go back to work due to a financial need. But 41% cited personal fulfillment as a reason to return to work after retiring.

Meanwhile, 37% said they’d want to go back to work in order to have a daily routine. And another 37% said they’d want to hold down a job for intellectual stimulation.

Of course, your ability to go back into the workforce is not entirely under your control. You need to find an employer willing to hire you on whatever basis you are willing to work. That has not been easy so far. If you have been out for a while, or if (as we advocate) you want to do something different than what you were doing for decades, you may have to create a plan to get yourself current on the skills for your new job, and likely you will have to sell yourself. Not easy.

But maybe things are changing.

Over three in five employers said they gave a “great deal” or “quite a bit of consideration” to job applicants age 50 and older when recruiting in 2022, according to a new Transamerica Institute workplace survey.

And more than half of employers (53%) agree with the statement, “Many employees at my company expect to work past age 65 or do not plan to retire,” according to the report, which surveyed 1,876 employers and 5,725 workers in a for-profit company.

The results offer hope that workplace ageism may be waning as demographic changes force employers to consider older workers, who often prove to be the most satisfied employees.

Older people do not want to take wages from younger workers. But the economy is not a zero-sum game. Consider the invention of the Ford Motor car.

Needless to say, Ford himself became extremely wealthy in the process. However, Ford also greatly increased the wealth of countless others through his innovations. He provided high-paying jobs to thousands of workers while producing a much-valued new good to the burgeoning middle class.

In the same way, using our experience will expand opportunities—and profit—for everyone. The pie will grow.

There is an estimated $5 trillion in potential economic output from employing older workers, according to the McKinsey Health Institute. An ageing population means the ratio of workers to retirees is falling.

We think being inventive about keeping people in the mix after they retire from long careers is critical for us, and rewarding for everyone else. We are very hopeful that employers are coming to realize that workers with experience are valuable.

Employers: Be creative. It is a win-win for all. And retirees in every stage: Remember you have value you can contribute.

Tell us about your journey.