The year 2025 may see a significant number of retirees reentering the workforce, prompted by both personal and economic factors. While the choice to return to work isn’t made lightly, the current landscape is pushing many to reconsider their retirement plans.
A recent survey conducted by ResumeBuilder.com, a platform specializing in resume development and career guidance, revealed that approximately 13% of retirees in the U.S. are contemplating going back to work next year. The reasons behind this decision vary, but key factors include the rising cost of living, boredom, increasing housing costs, and the need to pay off non-medical debts.
The rising cost of living, a major reason for retirees returning to work
One of the primary reasons retirees are reconsidering their decision is the rising cost of living. According to the survey, 69% of retirees planning to reenter the workforce cited this as their main motivation. In recent years, inflation has significantly impacted the cost of essential goods and services such as food, energy, and transportation.
This increase has eroded the purchasing power of many older individuals, forcing some to think about returning to work as a way to regain some financial stability.
Many retirees did not anticipate such a sharp increase in prices during their retirement years. When they originally made their financial plans, they based them on more stable forecasts, but the reality turned out to be different. To maintain their standard of living, many are now considering reentering the job market, at least on a part-time basis, to compensate for the economic challenges they face.
Boredom, an unexpected factor
Another significant reason pushing retirees back to work is boredom. According to the survey, 42% of respondents reported feeling a lack of meaningful activity after spending some time in retirement. While retirement is often idealized as a time for rest, travel, and leisure, the reality is that for many, especially after years of following a routine at work, an abundance of free time can feel overwhelming.
This has led some to seek out work not only as a way to stay busy but also to feel useful again. For many, employment provides more than just a paycheck—it offers a way to combat isolation and a lack of purpose that sometimes accompanies retirement. The opportunity to stay physically and mentally active, while engaging in a social environment, is something that many retirees miss after leaving the workforce.
Housing costs continue to rise
In addition to the rising cost of living, 39% of retirees considering a return to work mentioned that increasing housing costs are a factor in their decision. Over the last several years, both rent and property prices have continued to climb, creating financial challenges for many older adults.
While some retirees own their homes outright, others rely on renting, and the surge in rental prices has put a strain on their finances. Additionally, homeowners aren’t immune to these increases either. The associated costs of owning a home—such as taxes, insurance, and necessary repairs—have also gone up. For these reasons, some retirees feel that returning to work is the only way they can cover these additional housing-related expenses.
Non-medical debt
Another 34% of retirees thinking about going back to work cited the need to pay off non-medical debts as a contributing factor. Throughout life, many people accumulate debts that they are not always able to clear by the time they retire. These debts could come from mortgages, personal loans, or credit cards, and for some retirees, these financial obligations represent a heavy burden.
The pressure to pay off these debts has led many to consider returning to work, at least temporarily, to improve their financial situation and reduce their outstanding liabilities. Retirement is not a financially stress-free period for everyone, and the prospect of a steady income stream can help ease the pressure of lingering debt.
The profile of retirees who never stopped working
The survey also revealed that 22% of older adults are already working, with 39% of them having initially retired but later deciding to return to the workforce. In many cases, they cited the same reasons as those contemplating a return—the rising cost of living and boredom. These retirees realized that their financial or personal situations weren’t as comfortable as they had expected, and they found that returning to work offered a practical solution to their challenges.
In contrast, 61% of those retirees who are still working never fully left the workforce. Many of them continue to work simply because they enjoy their jobs, while others mentioned that they haven’t been able to save enough to retire comfortably. For this group, the choice to keep working is not solely about financial necessity; it’s also a way to maintain an active, purpose-driven life.
