Report: One-third of retirees look for work to make ends meet with inflation, rising cost of living

More than four out of ten senior citizens who have never retired are now considering side hustles or temporary work to make ends meet. One out of three current retirees in America are considering going back to work, according to a report from Indeed Flex.

Inflation and the rising cost of living are the main drivers causing many to come out of retirement and return to the workforce.

Indeed Flex found a third of those coming out of retirement and returning to the workforce are looking for 1 to 3 shifts per week. Nearly 20% of seniors polled by Indeed Flex attribute the increasing cost of living as the reason they are looking for additional income.

“Temporary employment can serve as a sustainable and long-term source of extra income,” says Indeed Flex CEO and co-founder Novo Constare. “Everyone has their own reasons for choosing to temp, however, seniors will benefit from the flexibility that temping offers and the freedom to tailor their work schedule around their lifestyle.”

Indeed Flex also reported a 70% jump in active users over 62 years old in April compared to accounts that were active this past January. Temporary jobs are an easy way for seniors to return to the workforce.

According to the Economic Outlook from S&P Global Ratings, inflation is likely to stay above 2% for the remainder of 2024. They predict goods prices to drop slightly but see service prices continuing to increase. With inflation above the 2% target of the Fed, it will most likely limit the ability of the Fed to reduce interest rates beyond the planned 75 basis points of rate cuts this year.

Main Concerns of Retirees

A May 2024 Indeed Flex survey reveals 1,000 seniors’ top three reasons for considering temporary work: the cost of living (71.6%), personal fulfillment or keeping busy (39.7%), and desire for social interaction (35.8%).

A Nationwide survey at the end of 2023 found almost the same numbers despite extending their interview pool to ensure representation of diverse racial and ethnic groups.

The three main reasons that drive retirees to return to the workforce include:

1. Running Out of Money

Regardless of how much money is in a retirement account, older Americans fear not having enough, especially in the face of an ever-increasing cost of living. Every dollar earned means one less dollar removed from a retirement account. The more untouched funds in a retirement account, the more investments will grow.

2. Boredom

The transition from full-time work to none at all affects people differently, leaving some feeling unfulfilled. Many retirees return to work to fill their time doing something outside the house. This leads to the third reason.

3. Socialization

Many Americans see work as an opportunity to socialize outside of the home. When they retire, they lose that connection. Returning to work, even just one or two shifts weekly, can bridge social gaps and give seniors the satisfaction of connecting with people.

Additionally, insufficient savings (20%) and healthcare benefits (6.7%) rounded out the bottom of the list.

Fears of Depleting Savings

Increased living costs and fears of running out of money drive retirees back to the workforce. In a recent Schroders survey, 2,000 retirees disclosed their financial concerns.

68% of those surveyed worried they would outlive their retirement savings; only 44% of respondents thought they had saved enough to cover retirement. When asked about inflation concerns, 89% of retirees feared inflation lessens the value of their savings.

“Whether it’s a trip to the gas station, grocery store or pharmacy, prices in the U.S. have increased noticeably in recent years, and that is particularly challenging for retirees living on fixed income sources,” explains Deb Boyden, head of U.S. defined contribution at Schroders. “The challenges facing retirees today are further evidence of the retirement savings crisis.”

Additionally, 85% of respondents expressed concerns about higher healthcare costs, and 76% feared that a major market downturn could significantly reduce their assets. One-third of retirees worry that financial stress will impact overall health, with 26% having had sleepless nights over their financial situation.

While 66 million Social Security beneficiaries received a Cost of Living Adjustment, it may not be enough to keep up with inflation and rising prices. Platforms like Indeed Flex offer alternatives for retirees looking to supplement retirement savings.

This article was produced by Media Decision and syndicated by Wealth of Geeks.

This is a developing story. Check back for updates as more information becomes available.

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