Some American workers are resigning, but others are unretiring. 1.7 million Americans who retired a year ago have returned to work, according to AARP. That's 3% of retirees.
They’re not just going back to pad their bank accounts with fresh paychecks, either. Many are driven by other factors, ranging from stock market volatility to a desire for more social interaction.
InflationThe U.S. inflation rate hit 8.3% in April, continuing a recent run that has seen prices surge to their highest levels since the early 1980s.
At the same time, the Social Security Cost of Living Adjustment (COLA) for 2022 is only 5.9%, meaning that retirees who depend on Social Security for a good part of their income are fighting a losing battle against inflation.
Stock Market WoesThe Dow has fallen about 10% so far in 2022 after spending much of the previous decade soaring to record highs. The S&P 500 has dipped even more this year.
Rise in Remote WorkPerhaps the biggest impact the COVID-19 pandemic had on professional life is that it forced many companies to adapt to work-from-home arrangements during lockdowns.
ising Health CostsAs of April, the cost of medical care services had risen 3.5% from the previous year, AARP noted. This has proven especially burdensome to retirees.
Social InteractionSeniors 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.