The Percentage Of People That Return To Work After Retiring Will Give You Pause

What a feeling. After decades of hard work, you're finally able to kick back, relax, and enjoy the fruits of your labor. Or maybe not. Recently, a surprising number of retirees — as much as a quarter of the retired population — are choosing to come out of retirement and re-enter the workforce. While for some it's out of financial necessity, many are doing so purely for personal fulfillment. Angela Rowe, a policy specialist with the National Conference of State Legislatures (NCSL), shared — at the organization's 2025 summit — that by the end of 2024, 20% to 25% of retirees were working, either part-time or full-time, while an additional 7% of retirees were actively looking for work. 

The reasons that have prompted this new trend, referred to as "unretirement", are varied, though financial reasons are cited as the leading factor. According to a study conducted by T. Rowe Price, about half (48%) of the "unretired" people surveyed said financial reasons were the primary driver. This should come as no surprise, given that the increased cost-of-living — for everything from food to healthcare — has been impacting many retirees' savings. In addition, increases in life expectancy — which currently stands at almost 80 years old in the U.S.– have many retirees rethinking how much money they really need in retirement and whether they'll have enough to last.

While finances are a factor for many retirees, social and emotional fulfillment came in close at second place, with 45% of survey participants indicating this was their primary reason for rejoining the workforce. There are various benefits to working into your golden years. It can provide a sense of purpose for retirees, which can have a positive effect on their emotional well-being. In addition, the social connections and mental stimulation can lead to greater fulfillment, improved cognitive health, and a better overall quality of life for retirees.

Gender and marital status also played a role in the underlying reasons to resume working. "Single retirees and women are much more likely to cite income as their primary motivator for returning to work after retirement, while men are more likely to cite the need for social connections," said Rowe of NCSL. Wealth also factored into the equation.  According to the T. Rowe Price study, while 57% of retirees indicated wanting to continue working in some form, the group with less than $50,000 in investable assets also had the highest percentage of retirees – 28% — who cited wanting to work as their main motivation. This compares with just 14% of upper-class retirees – those with more than $750,000 in investable assets — who indicated the same. For those considering returning to work, remember to also consider how unretiring might affect your Social Security.