Retirees Are Returning To Work — But Is It Only for the Paycheck?

Retirees have more options that ever for earning extra money with the gig economy in full swing and a variety of jobs that can be done from home. In fact, many retirees have made the choice to return to a work in recent years for a variety of reasons.

Contents

Inflation and Food Costs Stock Market Woes Rise in Remote Work Rising Healthcare Costs Social Interaction

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While some are looking to pad their shrinking retirement accounts, others are driven by other factors ranging from stock market volatility to a desire for more social interaction, mental stimulation or a sense of purpose. Here’s a look at five reasons why formerly retired Americans are returning to the workforce in 2025.

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Inflation and Food Costs

Currently, the U.S. inflation rate is 2.4%, where core inflation is closer to 2.8%. Many expert economists are projecting a full-year 2025 inflation rate of about 4%, primarily due to the potential effects of the Trump administration’s tariffs.

Retirees on a fixed income could now be dealing with rising food costs, which could mean picking up a job in retirement just to cover monthly expenses. Common imports like coffee, olive oil, seafood, fruit, wine, beer, rice, beef, chocolate, nuts, cheese and more could be subject to inflation due to tariffs ranging from 10% to 46% depending on the country of origin. For example, coffee from Colombia will get a 10% tariff, whereas nuts from Vietnam will get dinged 46%.

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Stock Market Woes

When the economy hits a downturn, or people worry that it’s going to, your 401(k) plan and other retirement savings can recede with every stock dip. Although any financial advisor or expert investor would say not to make any knee-jerk decisions, it’s still a good idea to prepare when everyone is whispering the word recession.

President Trump, DOGE and the White House administration’s tariff onslaught has been scary for workers, investors and consumers alike, as this type of trade policy can spike inflation and hinder economic growth. For example, the S&P 500 index had tumbled 10% from its most recent high, amongst impending tariff back-and-forths. Still, the volatility of the stock market may result in many retirees seeing their 401(k) balances decline just as prices skyrocket. In some cases, retirees will have little option but to return to work.

Rise in Remote Work

Perhaps the biggest impact the pandemic had on professional life over the last several years is that it forced many companies to adapt to work-from-home arrangements during lockdowns. They turned to technologies like Zoom and Slack to make it easier for employees to work remotely.

More than a few employees liked the arrangements — especially older workers who have grown tired of long and expensive commutes. Though some companies have returned to the office again, many companies still offer remote and hybrid arrangements — a paradigm that has lured a large number of retirees back into the workforce.

Rising Healthcare Costs

The cost of medical care services has risen again and again, which has proven especially burdensome to retirees. The average cost of healthcare for older workers is about three times what it is for young working adults. Retirees who aren’t yet eligible for Medicare are returning to the workforce strictly for healthcare coverage.

Seniors tend to be more isolated than younger folks, and that reality only worsened during the pandemic. For retirees, returning to work provides a way to avoid loneliness and keep their minds stimulated. Not only is this a good way to stay physically active, but engaging in a low-effort responsibility a few times a week can also help battle depression.

Many seniors are now thinking of entering the workforce again for social interactions. The paycheck or additional income is helpful for sure, but it’s not the only reason retirees are reentering the workforce.

Vance Cariaga contributed to the reporting for this article.

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