A growing share of older Americans are stepping back into the workforce after retiring, driven largely by financial pressures tied to higher everyday expenses, according to a recent survey from AARP.
The poll found that 7% of retirees returned to work during the past six months — an increase from 6% who reported doing so in the summer of 2025.
The results reflect responses from 2,083 adults age 50 and older interviewed in November and December, following a prior survey of 2,362 respondents conducted in July and August.
Many of those reversing retirement decisions say the move is financially motivated.
Nearly half — 48% — cited the need for income or concern about their economic outlook, while smaller percentages pointed to boredom or a desire to remain active.
Among respondents who are currently employed or job hunting, 41% said day-to-day living costs are their primary motivation.
“This idea of retirement as a cliff, where we’re all working towards this one day where we finally get to retire —
is really not the reality for so many people in this country,” said Carly Roszkowski, vice president of financial resilience programming at AARP.
Financial preparedness and health-related factors remain the two most common triggers for retirement in the first place, according to the organization’s findings.
Yet returning to work later in life can pose difficulties.
Two-thirds of older workers — 67% — believe securing a new position would be challenging in the current environment, with age discrimination identified as the leading concern, followed by health limitations or disability.
At the same time, 24% fear losing their job within the coming year.
Layoff data from outplacement firm Challenger, Gray & Christmas shows job cuts in January reached their highest level for the start of a year since the 2009 financial crisis.
“Just because people aren’t unretiring doesn’t mean they don’t need to,” Geoffrey Sanzenbacher, professor of the practice of economics at Boston College and a research fellow at the Center for Retirement Research at Boston College, told CNBC.
Sanzenbacher noted that many retirees may lack the physical ability or job prospects needed to reenter the workforce. Those pressures are compounded by persistent inflation, market swings and a softer employment backdrop, which together weigh on retirement finances.
Many retirees depend primarily on Social Security or a combination of benefits and investment income. When market returns disappoint or annual cost-of-living adjustments fail to keep pace with expenses, the need to supplement income can intensify.
“People really are sensitive to inflation,” Sanzenbacher said. “Even if their incomes go up, I still think they feel pinched if the things they buy are a lot more expensive.”
AARP said it is working to connect older job seekers with employers receptive to experienced candidates, including through a collaboration with job-search platform Indeed that aggregates listings from organizations actively seeking workers across age groups.
© 2026 Newsmax Finance. All rights reserved.