The Labor Department reported an unemployment rate of 3.6 percent in May, the lowest figure in years. According to a nationwide job survey, millions who retired a year earlier are returning to work due to rising inflation. Experts have called this phenomenon “The Great Unretirement.”
“I had worked it [retirement] all out. I could afford it,” Pattie told CBS News. “Inflation happened. It [inflated prices] just got overwhelmed me.”
According to the Bureau of Labor Statistics, the consumer price index is 8.6 percent, the highest mark since 1981.
Rising food and fuel costs have retirees second-guessing how they will pay for much-needed healthcare.
“What’s going to happen when I get older,” Laura Rodriguez asked NBC News. “How am I going to pay for the care that I need?”
According to AARP, younger retirees who do not qualify for Medicare are jumping back into the labor force to keep insurance coverage.
Then there are retirees whose 401k accounts were once sitting high when the markets rallied during the pandemic and have since seen those gains decline, forcing them to rethink how they will spend their golden years.
According to the job search website Indeed, 3.2 percent of workers who retired a year earlier are now employed. Analysts say roughly 3 percent of retirees did the same from 2017-2019.
For some retirees, the prospect of returning to work is not all doom and gloom. Experts say it keeps the young at heart involved in the community. The new work-from-home climate also gives them more flexibility.
JIMMIE JOHNSON: THE U-S UNEMPLOYMENT RATE CURRENTLY SITS AT 3.6 PERCENT – ROUGHLY 6 MILLION AMERICANS. IT’S ONE OF THE LOWEST RATES WE’VE SEEN IN YEARS.
AND PART OF WHAT’S DRIVING THAT TREND – FOLKS REJOINING THE WORKFORCE. HENCE WHY, SOME ARE CALLING IT THE GREAT UNRETIREMENT.
LET’S GET THIS STRAIGHT!
RETIREE: ”I had worked it all out financially. I could afford it. CBS reporter: What happened? Retiree: The economy. (chuckles) Inflation happened. It just kind of overwhelmed me”
AND PATTIE IS NOT ALONE. SHE IS ONE OF THE MILLIONS OF RETIREES HEADING BACK TO WORK DUE TO RISING INFLATION.
THE RISING COST OF FOOD AND FUEL. THE FEAR OF NOT BEING ABLE TO AFFORD HEALTHCARE COVERAGE. IT’S ALL TOP OF MIND.
[SOT: LAURA RODRIGUEZ: “what’s going to happen when I get older? How am I going to pay for the care that I need?”
JIMMIE: TO FOOT THE BILL FOR RISING HEALTHCARE COSTS, RETIREES WHO DON’T QUALIFY FOR MEDICARE JUST YET ARE JUMPING BACK INTO THE LABOR FORCE TO REMAIN COVERED.
THEN THERE ARE RETIREES WHOSE 4-0-1-K’S WERE ONCE SITTING PRETTY WHEN THE MARKETS RALLIED DURING THE PANDEMIC. THOSE GAINS HAVE SINCE DIMINISHED, FORCING THEM TO RETHINK HOW THEY WILL SPEND WHAT ARE SUPPOSED TO BE THEIR GOLDEN YEARS.
THREE-POINT-TWO PERCENT OF WORKERS WHO WERE RETIRED A YEAR EARLIER ARE NOW EMPLOYED. SO, HERE’S THE THING – THIS TREND ISN’T ALL THAT NEW. ANALYSTS SAY ROUGHLY THREE PERCENT DID THE SAME THING FROM 20-17 TO 20-19.
FOR SOME RETIREES – THE PROSPECT OF RETURNING TO WORK ISN’T ALL DOOM AND GLOOM. EXPERTS SAY IT KEEPS THEM INVOLVED IN THE COMMUNITY AND MANY HAVE THE OPTION OF NOT HAVING TO COMMUTE WITH THE FLEXIBILITY OF REMOTE WORK GROWING ACROSS MANY INDUSTRIES.
SO, IF YOU’RE A BOSS AND ONE OF YOUR MORE EXPERIENCED PEEPS PULL THE RETIREMENT CARD, JUST TELL THEM TO TAKE A GAP YEAR FROM WORK.
YOU MAY BE SURPRISED AT WHO RETURNS A YEAR LATER.