retired going back to work resume

How to Write a Resume for a Retired Person

It is normal to have felt that you won’t ever have to write a resume again after your retirement. However, plans change and you may now need an additional source of income or something to fill a void.

As a retiree, you have lots of skills and experience to offer your potential employers. You can highlight all you have to offer in a retiree resume. It can also help you land a role that suits your present situation.

In this guide, we will be providing you with well-detailed information on how to write a resume for a retired person. If you do not have time to do all this, you can check our top of the best resume writers .

What Is a Retiree Resume?

A resume for retired person is a type of resume that is written by someone who is currently retired but looking to return to employment. It has to be structured in a way that shows your potential employer why you are the most qualified candidate.

Hence, it should highlight the skills and experience that you have garnered from your previous employment. Learning how to write it is as easy as learning how to send unsolicited resume .

Best Resume Format for a Retired Person

When writing a resume for retirees, you may either use the chronological or functional format. You should have a good idea of how a traditional chronological resume is written. In this format, you will have to list all the positions that you have held, starting with the latest, and in the reverse order.

Alternatively, you may opt for the functional format. This format involves you listing the work that qualifies you the most for a role at the upper part of your CV. The time that you held the position shouldn’t be considered. It is the best method of making career changes less evident and removing gaps from one’s employment history.

Which is the ideal format for a returning to work after retirement resume? A chronological resume is more suitable for someone who is trying to get to a field he or she has just retired from. Meanwhile, a functional resume is an ideal choice for people that retired a while ago or took a break in between their careers.

Tips for Writing a Resume for a Retired Person

A conventional resume is an excellent template for resumes for retirees. But if you want to, you can develop a completely new job summary. The information below will show you how to write a resume for a retired person perfectly:

1. Add Only Relevant Information

Try not to include information that isn’t related to the role that you are applying for. Old positions and expired certifications should be excluded. Check out job listings for your past roles and ensure that your language is in line with that of others in the industry.

That way, you can create a trendy job history. Also, you should only reference dates or years of experience that pertain to the job description. For instance, you may write that you have a decade worth of experience in sales.

2. Include Skills That Employers Need

You should look at your preferred job listings and search for the in-demand skills that you have. Soft skills such as communication and teamwork in particular are vital. You should also include skills that show that you are prepared to learn new things. Your resume should reflect how knowledgeable and experienced you are.

Additionally, you should pay attention to the summary close to the upper part of your resume. Describing your relevant experience and skills in this section can be very beneficial. Mention the technology that you can work with, it will be even better if it’s new or listed in your preferred job description.

You should also add any training or workshop from the last couple of years. Your resume should be revamped if strong verbs haven’t been used to describe your professional accomplishments.

3.  Describe How You Used Your Time for Development

If it has been over a year since you retired, you should describe how you utilized your time for growth. You should also add any volunteer work or new skills you acquired, they don’t have to be related to the role that you are trying to get. For instance, you may mention how you participated in continuing education classes. Your potential employer will be more interested in hiring you if you show that you used your free time productively.

Returning to Work After Retirement Resume Example

Let’s take a look at an example of a functional resume for retired person returning to work. This should give you a good idea of how to write yours:

A dedicated office manager who has always surpassed performance goals. Helps teams to meet their target and give customers the best experience.

• Training: Added four new employees to the team and trained them on the essential facets of office management. The training covered billing, booking appointments, and customer service.
• Team Management : Was in charge of a team of eight and entered all information on the system. Ensure all was in order including budget, payroll, and schedule. Also ensured that performance goals were met.
• Data Security : Taught team members about data security to ensure office compliance. Achieved this via meetings and seminars on HIPAA laws and secure computer practices.

* Office Manager, Safe Hands : Long Island, NY*

* Office Lead, The Wright Company : Buffalo, NY*

* Front Office Assistant, Standard Dental : Rochester, NY”

BSc in Business Management, Fordham University, NY, New York.

Certifications

Certified Office Manager

Sections to Include in a Retired Person’s Resume

There are certain sections that you have to include in your retirement job history just like when writing a family business resume  or listing patents on resume . You should start with a header that contains your contact information. This should include your main email address and maybe a phone number.

Next in line should be the skills section. Here, you should list out the skills you gained during your time of employment and how you used them. Follow this section with an experience section in which you describe your work history. You should also consider adding a resume objective for retired person.

Remember that this could either be in a chronological or functional format, depending on what suits your situation best.

Next, add an education section to provide your potential employer with a view of your academic background. You may include an additional section for any certification that you have received in a retired resume.

Key Takeaways

A well-written resume for a retired person will go a long way in getting you back in employment. We have done our best to provide all the information you need to get it done in this guide. Remember to opt for a format that describes your qualifications the best.

You should also add only relevant information and modern skills. If you feel a need to, you may pad your resume  too.

1. Why do retirees need a resume?

A retired person may decide to get a new job to increase his or her income, find something interesting, or share experience.

2. What should retiree resume include?

A resume for retired person looking for part-time job or full-time job should consist of the same information as a regular resume. However, more focus should be placed on the skills and qualifications you garnered during your employment.

3. What is a retiree resume?

A retirement resume is a form of resume for a person who is currently retired but wants to start working again.

4. What should I include in a retiree’s resume summary statement?

Your summary statement should tell your employer about your relevant experience and skills. This may include tools you can use or recent training or workshops.

5. How do I format a retired person’s resume summary statement?

First, you should avoid using first-person and third-person pronouns in your resume for retiree returning to work. You should also use sentence fragments only. Finally, use action verbs instead of passive verbs.

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3 Returning to Workforce Resume Examples for 2024

Returning to Workforce Resume

Clean returning to workforce resume, modern returning to workforce resume.

• Returning to Workforce Resume Writing 101

Whether you took a sabbatical or spent some time caring for a loved one, returning to the workforce usually means a resume update and a whirl with a free cover letter builder . Your skills and experiences might have changed since the last time you were employed, and you might want to change your resume formatting to emphasize your skills over the gap in your work experience. 

Whatever the reason behind your return, we’ll help you put your best foot forward. Get ready to roll with our three returning to workforce resume examples.

Microsoft Word

Google Docs

Related resume examples

• Stay at home mom returning to work
• Front desk receptionist
• Personal assistant
• Stay at home mom

What Matters Most: Skills & Work Experience

While the role you’re applying for matters, hiring recruiters looking at a returning to workforce resume will want to know whether you applied yourself during your time away. 

You don’t have to disclose every sordid detail—all you need is to demonstrate that your skills are relevant to the job , whether new or existing.

Here are some of the best returning to workforce skills recruiters are looking for.

9 best returning to workforce skills

• Customer service
• Project management
• Organization
• Time management
• Problem-solving 
• Microsoft Office
• Communication skills
• Active listening

Sample returning to workforce job experience bullet points

Filling in the blanks with any volunteer, freelance, unpaid, or part-time work you might have done will help dispel any assumptions made about your resume gap.

Although you shouldn’t feel like you have to go into specifics about your career break (especially if it’s sensitive or personal), adding quantifiable metrics whenever possible can help potential employers get a better idea of what you did with your time. 

Here are a few samples:

• Advised and assisted the family of 5 in planning healthy meals, purchasing, and preparing foods 
• Created, assigned, and scheduled various housekeeping duties for 3 children ages 4 to 12, according to their capabilities 
• Kept track of the grocery inventory, making sure items moved on a FIFO basis, saving the household $4,000+ a year in grocery shopping expenses
• Provided 24/7 in-home care for my mother during treatment for a medical condition until she made a full recovery within two years
• Traveled to 8 cities in Asia, Australia, South America, and North America to gain personal and professional perspective

Top 5 Tips for Your Returning to Workforce Resume

• If you’re returning to the workforce, chances are that the career experience you had might not be as relevant to the current job market, even if you have more than 10 years of experience. Unless you have been actively keeping up with your skills while you were away, it’s better to keep only the important details in your resume .
• Start with your career break, then record your most recent jobs. This filters out any employers who might prefer complete career histories and addresses your resume gap early on, allowing the reader to focus on the rest of your work experience and what you can contribute to the new role.
• You might have moved or had a change in relationship status, leading to a different last name. List your most recent contact details at the top of your resume, and consider adding any career-related social media you might have.
• Depending on the position you’re applying to, you could benefit from a skills section that details how you applied your skills in a quantifiable and measurable way. You can also highlight your skills section by moving them so that the recruiter reads it before your work experience.
• Listing your work experience in months and years can make the gap in your career stand out. Changing to using years only will help recruiters focus on the time you spent employed, shifting their perspective toward your career instead of the lack thereof.

Yes, especially if you’re having trouble filling out the blank space in your resume. You can also link your education with any studying or application you did during your time off. The key here is to demonstrate how your skills and experience are relevant to the present job climate.

Any job will do as long as you’re qualified for it and it appeals to you! Some people choose to change career paths when they return, while others get right back to the industry they previously worked in. While you’re job hunting, consider getting an entry-level job in the meantime to fill out your resume.

While we don’t usually recommend including a career summary if you have a lot of relevant information to include in your resume, adding one can help break the ice and mention your resume gap within the context of your career. If you choose to write one, make sure it’s tailored to the job you’re applying for.

• EXPLORE Random Article

How to Resume Working after Retirement

Last Updated: February 26, 2024 References

This article was co-authored by Jonathan DeYoe, CPWA®, AIF® . Jonathan DeYoe is a Financial Advisor and the CEO of Mindful Money, a comprehensive financial planning and retirement income planning service based in Berkeley, California. With over 25 years of financial advising experience, Jonathan is a speaker and the best-selling author of "Mindful Money: Simple Practices for Reaching Your Financial Goals and Increasing Your Happiness Dividend." Jonathan holds a BA in Philosophy and Religious Studies from Montana State University-Bozeman. He studied Financial Analysis at the CFA Institute and earned his Certified Private Wealth Advisor (CPWA®) designation from The Investments & Wealth Institute. He also earned his Accredited Investment Fiduciary (AIF®) credential from Fi360. Jonathan has been featured in the New York Times, the Wall Street Journal, Money Tips, Mindful Magazine, and Business Insider among others. There are 13 references cited in this article, which can be found at the bottom of the page. This article has been viewed 52,301 times.

Retirement does not always mean the end of work for many people. Many retirees find their way back into the workforce for a number of reasons, including needing more money or simply being bored at home. Whatever the case may be for you, finding and applying to the right job can make a world of difference during your retirement years.

Evaluating Your Options

• Decide what type of hours you'd like to work and what kind of schedule you'd be comfortable with. You may need to be more flexible, depending on the job market in your area and how immediate your financial needs are.

• Retail businesses frequently hire workers of all ages, including workers over 50. Applying with a retailer you visit frequently can further improve your chances of getting hired.
• The elder care industry is notable for its lack of age bias/discrimination. Working in the elder care industry can also bring a great sense of fulfillment.
• The wealth management/banking industry frequently hires workers over age 50.
• Many workers over 50 years of age find work as a tour guide. It may be seasonal work in some places, but it allows you to get involved with a place you're interested in.
• Driving can be a fun and lucrative job, if your license and insurance are valid. You can apply for work driving a shuttle or bus, or try a driver service like Uber or Lyft.

• Calculate your monthly expenses, including housing and mortgage costs, utilities, transportation, food and entertainment expenses, and any medical bills you pay.
• Calculate your monthly income, including Social Security benefits, retirement plans, and investment income.
• Don't forget to calculate your monthly expenses and your monthly income after taxes, not before. This will help give you a more accurate picture of your financial situation. [5] X Research source
• The difference between your monthly expenses and your monthly income is called your income gap. You'll want a job that pays at least as much as your income gap so you'll be more financially secure.

• Returning to work could negatively affect your pension, which is calculated based on your salary in the years prior to retirement. If you resume working and then permanently retire later, it could result in a lower pension payout.
• Going back to work can potentially cut into your family and vacation time. As a new employee, you may be expected to pick up swing shifts, holidays, and other undesirable work blocks.

• If you retire before age 65, you will not yet qualify for Medicare. By returning to work until you're at least 65, you'll be able to get health coverage through your employer, or at least be able to pay for healthcare more easily.
• By returning to work, you can increase your monthly income to help pay for any expenses and build a savings for the future.
• Returning to work will also allow you to spend more time out of the house. This can generally help you have a normal schedule and a sense of purpose, which some individuals lose after retiring.

Finding and Applying to Jobs

• Networking can help you find work in your field. Prepare a 30-second "elevator pitch" that summarizes who you are, what you've done, and what you'd like to continue doing.
• Reach out to former colleagues and professional acquaintances/associates. Let them know you're looking for work, but don't ask for a job; instead, ask about their professional experiences and how to break back into the field.
• Consider reaching out to the hiring managers and department heads at your old job. Let these individuals know that you're interested in project assignments and more steady work. [9] X Research source
• Don't be afraid to search outside your industry in a related field (with similar skill sets). You may also want to consider "starter" and as-needed positions, like a consultant.

• Build your professional network on sites like LinkedIn. This can help highlight your professional experience and the scope of your colleague support.
• Make sure your social media accounts have privacy settings in place that won't let potential employers see what you've posted. Or, at the very least, make sure you haven't posted anything offensive or overly-controversial.
• You can clean up your social media accounts using specialized apps like Social Sweepster, which delete posts that could potentially ruin your employment chances. [11] X Research source
• Consider removing your age from your networking and social media accounts. That way potential employers won't actually know how old you are.

• Choose a traditional, easy-to-read font like Arial, Calibri, or Times New Roman.
• Use a normal font size as well: either 10-point or 12-point is ideal, though you can go up to size 14 or 15 for your name to make it stand out.
• Include your contact information at the top of the page (including a URL for your LinkedIn page, if you have one).
• Restrict your resume to one or two pages. Your resume should highlight your qualifications, not tell your entire life story.

• Check for spelling and syntax errors. These can quickly turn off an employer, as they may look unprofessional.
• Use some of the key words and phrases that the employer used in the job advertisement. Don't pull entire sentences, but incorporate certain terms (like "management of personnel" instead of "director of personnel"). [13] X Research source
• Make sure your cover letter has an opening paragraph explaining who you are and why you're interested in/qualified for the job. Your closing paragraph should politely request an interview or follow-up of some type. [14] X Research source
• The body of your cover letter, which comes between the opening and closing paragraphs, should highlight and expand on some of your resume's most compelling points.

• Make sure your email address is normal and through a contemporary server like Gmail. [15] X Research source
• Only highlight the last 10 to 15 years of work experience. [16] X Research source
• Rather than discussing your other years of experience, you should focus on your professional skills and achievements. [17] X Research source

Nailing the Interview

• A 40 year old suit may make you look out of touch with other contemporary job seekers.
• Opt for modern-styled clothing: a slimmer cut suit for men, and a modern blouse and skirt or pant suit (without shoulder pads) for women.
• Make sure your hairstyle, makeup, and fragrance (or absence of fragrance) are appropriate for both the industry and the position you're trying to enter. [19] X Research source

• At the very least, you should know about the company's history and the details of the particular position you're applying for.
• Know and be able to smoothly incorporate relevant facts and statistics. However, make sure you incorporate that information in a relevant way so it doesn't look like you're just dropping facts.
• You may want to go even deeper and research the company's earnings, quarterly reports, and blog posts. This will give you a better sense of where the company stands and where it hopes to move in the future.
• Be able to converse comfortably about what the company is doing and why you think you'd be a good fit.

• Plan to be in the office and waiting for your interview at least five minutes ahead of time. That means parking and walking to the building at least 15 to 20 minutes early.
• Bring at least one hard copy of your resume, even if you already submitted one electronically.
• You should also bring a pen, notebook, and a list of questions to ask the interviewer after they're finished asking you questions.
• Some people like to bring a small water bottle tucked away in a briefcase or purse to prevent dry mouth. However, don't bring coffee or any obvious beverage in-hand, as this may look unprofessional.

• Answer questions honestly but completely. Talk each answer out a bit so that the interviewer gets a clear picture of your thought process.
• If you're not sure of anything, don't lie about it. Tell the interviewer honestly that you're not sure, or say something like, "That wasn't really something I dealt with. My primary responsibilities were ____."
• Anticipate that you'll be asked what your greatest weakness is. Make sure your answer shows how you've attempted to overcome your weakness.
• For example, you might say something like, "In the past I've struggled to maintain some of my employees' punctuality, but after implementing new office procedures I was able to improve both punctuality and performance."
• At the end of the interview, the interviewer should ask you if you have any questions. Bring your prepared notes and ask about the company, what your position would entail, and any other relevant questions you may have.

• Highlight your skills and the significant accomplishments of your career.
• Learn the contemporary terms and jargon relevant to the field. Industry terms may have changed since you last worked that job.
• If the interviewer asks if you're overqualified, spin your answer by focusing on why you're interested in this job/employer at this stage of your professional career.
• If the interviewer asks about gaps in your resume, spin your answer by talking about how raising a family, caring for a loved one, or volunteering during your time out of work helped you develop applicable skills.
• In the event that the interviewer asks about your ability to work for someone younger than you, talk about your ability to work with people from all age levels. Highlight specific instances from your recent employment.

• If you had a phone interview, send a quick email expressing your thanks and reiterating your interest in the position. Be sure to mention the interviewer, the position, and the company all by name.
• For an in-person interview, jot down each individual's name who interviewed you and one or two key questions they asked. Send a hand-written thank-you note to each person.
• Be sure your thank you-note addresses each interviewer by name and the main topic they brought up.
• For example, your note may read, "Dear Andrew, thank you for the enjoyable conversation on quality control last Tuesday. Looking forward to continuing the discussion in the future and learning more about the company."

Expert Q&A

• Use this opportunity to do what you really want to do, especially if money is not the motive for returning to work after retirement. Find out what you are really passionate about and focus on that industry when job searching. Thanks Helpful 0 Not Helpful 0

You Might Also Like

• ↑ http://www.foxbusiness.com/features/2013/08/28/tips-for-going-back-to-work-after-retirement.html
• ↑ Jonathan DeYoe, CPWA®, AIF®. Author, Speaker, & CEO of Mindful Money. Expert Interview. 15 October 2020.
• ↑ http://assets.aarp.org/www.aarp.org_/cs/elec/goingbacktowork.pdf
• ↑ http://www.cnbc.com/id/46795960
• ↑ http://www.aarp.org/work/job-hunting/info-2014/resume-job-search-tips.html
• ↑ http://www.marketwatch.com/story/14-tips-and-resources-for-finding-work-in-retirement-2014-08-04
• ↑ http://www.forbes.com/sites/jonyoushaei/2014/10/20/12-surprising-job-interview-tips/#4e1863183006
• ↑ http://writing.wisc.edu/Handbook/CoverLetters.html#structure
• ↑ http://www.aarp.org/aarp-foundation/our-work/income/back-to-work-50-plus/smart-strategies-for-50-plus-jobseekers/info-2015/job-application-tips.html
• ↑ http://www.aarp.org/work/job-hunting/info-07-2008/ace_the_interview.html
• ↑ https://money.usnews.com/careers/articles/expert-tips-for-interview-success
• ↑ http://www.forbes.com/sites/jonyoushaei/2014/10/20/12-surprising-job-interview-tips/2/#7697ddb42e34
• ↑ http://www.forbes.com/sites/lizryan/2014/07/07/1132/#1d9078ca740a

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How to Create a Return to Work Resume (With Sample)

February 16, 2024 | Career Advice

If you’re returning to the workforce after time off, updating your resume should be your first priority. Your resume will help you get your foot in the door, showcase your skills, and convince hiring managers to pick up the phone and call you for an interview. 

Follow these tips to create a resume for returning to work, and use the sample resume below for inspiration as you position yourself as a standout candidate.

What to Focus on in a Return to Work Resume

Prioritizing your strengths.

Your job-specific strengths should be showcased more prominently than your work experience if you’ve been out of the workforce for a long time. It’s vital to instantly convey to hiring managers how you’re qualified for the job they’re hiring for, which can be done by moving the skills section of your resume to the top or using a format that places less of an emphasis on previous jobs (more on this below).

Modernizing your old resume

Your resume from before you left the workforce probably has a lot of good material, and your prior experience is still relevant. There’s no need to trash it and build a new resume from scratch completely. Use your old resume as a starting point, then modernize it.

The professional world has changed significantly in the last several years. Resume design norms have evolved, as has the way companies hire. Your resume should be current for the year you’re applying and adjusted to the post-pandemic world.

Why Do You Need a Resume for a Return to Work?

It’s the first thing hiring managers see.

Your professionalism and charm might help you land the job… but first, you need to get the chance to exercise them by landing an interview. Your resume is one of the first things hiring managers see when you throw your hat in the ring for an open position, so getting it right is crucial to making a good first impression and breaking back into the workforce.

Highlight your transferable skills

Since you don’t have a current job for hiring managers to go on as a reference point, you need to help them see how your skills are relevant. What makes you qualified to do the job? Your resume connects your background from your prior career and the skills you developed during your time away from the workforce to the position you want now.

When Should You Use a Return to Work Resume?

Use this resume to:

• Return to work after taking time off
• Change careers after a gap in employment 
• Build professional connections that will help you land a job

Common Return to Work Resume Challenges and How to Overcome Them

Accounting for a long gap in employment.

You have two options for handling a long employment gap on a resume. Your first option is to cite it directly by listing what you were doing during that time as an entry under experience, i.e., ‘stay-at-home mom.’ This makes certain hiring managers know the reason for the gap and may keep them from making negative assumptions. Your second option is to downplay your employment gap by making other sections of your resume more prominent or using an alternative format where employment is a secondary focus, like a functional resume. 

Demonstrating impressive accomplishments

It’s much easier to show how you can make an impact on an organization if you have a recent track record of closing big deals or exceeding performance goals. Since you don’t have recent work accomplishments to show, however, you’ll need to sell yourself as a candidate in other ways. Use your resume to highlight achievements and qualifications you’ve gained in other non-work experiences, such as participating in volunteer work or completing a specialized training program.

Return to Work Resume Format and Key Components

A chronological, functional, or combination resume format is a good choice for returning to work.

Your resume should include these components:

• Contact information Begin with your name, address, phone number, and email address.
• Summary A summary section is useful for job seekers who are returning to work, acting as your “elevator pitch” for why you’re a great candidate. Use it to sum up one to two of your strongest skills and highlight what you’d bring to the specific position and company. 
• Skills Zero in on a handful of your top hard and soft skills and list them in a prominent section. As often as possible, use skills that are mentioned as requirements in the job description. This will help your resume get noticed by hiring managers and automated applicant tracking systems used to screen candidates. 
• Accomplishments Share your most noteworthy work achievements that are both measurable and related to the job you are applying for. It is important to show the hiring manager that you are results-driven and have a history of exceeding expectations.
• Education List your degree and the school(s) you attended. 
• Experience List your work experience in reverse chronological order. If you’re using a functional resume format, group your experience or accomplishments by type–i.e., technical experience, leadership experience, etc. Under each item, give specific, detail-rich examples of your accomplishments in that position or area, citing numbers and quantifiable achievements as much as possible. 

Polishing your resume is the first step toward restarting your career a break . Make sure you’re using a modern format, customizing the document for the specific job you’re seeking, and avoiding some of the most common resume mistakes .

Just because you haven’t worked in a traditional full-time job doesn’t mean you don’t have relevant experience. In addition to listing the jobs you held before leaving the workforce, state qualifications you’ve gained during other activities that have filled your time, like serving as a caregiver or managing your household finances.

A cover letter offers a little more leeway in terms of structure and content than a resume, which makes it an ideal place to explain an employment gap and position it in a positive light. 

When you’re returning to work after a long break since your last job, consider using a functional resume format. This alternative format helps call the hiring manager’s attention to your relevant skills, particularly position-specific skills like technical expertise and management experience.

When you’re reentering the job market, you can absolutely include unpaid positions in the experience section of your resume. Show how these roles expanded your skill set, brought you valuable perspective or allowed you to contribute to a worthwhile cause. 

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About Pete Newsome

Pete Newsome is the President of 4 Corner Resources, the staffing and recruiting firm he founded in 2005. 4 Corner is a member of the American Staffing Association and TechServe Alliance, and the top-rated staffing company in Central Florida. Recent awards and recognition include being named to Forbes’ Best Recruiting Firms in America, The Seminole 100, and The Golden 100. Pete also founded ze ngig , to offer comprehensive career advice, tools, and resources for students and professionals. He hosts two podcasts, Hire Calling and Finding Career Zen, and is blazing new trails in recruitment marketing with the latest artificial intelligence (AI) technology. C onnect with Pete on LinkedIn

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Just 40 days after retiring from the NFL last winter, celebrated quarterback Tom Brady announced that he would return to the Tampa Bay Buccaneers for another season after all, citing his competitive spirit and unfinished business on the field.

6 Steps to Finding Your Second Act in Retirement

Like Brady, some retirees are so drawn to their work that they can’t stay away for long. They may crave the sense of purpose or human interaction that a job can provide. And while Tom Brady doesn’t have to worry about running out of money, many retirees want to supplement their retirement income with a paycheck.

Lately, there’s been an uptick in the percentage of folks who “unretire.” In May 2022, 3.4% of people who said they were retired a year earlier had returned to work, according to the Indeed Hiring Lab, which provides research on the labor market. It’s not a staggering figure, but it’s an increase from the 3% average from 2017 through 2019.

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What's Behind the Trend?

A tight labor market is one factor. In the spring, there were nearly two available jobs for every unemployed person. Employers are dangling incentives such as higher starting wages and signing bonuses to draw qualified candidates. And although ageism can still be an issue, employers are looking at older, experienced workers more favorably than they did in the past, says Chris Farrell, author of Purpose and a Paycheck: Finding Meaning, Money, and Happiness in the Second Half of Life. Rather than wonder when older workers are going to retire, managers are more inclined to think about how to keep them on the job , he says.

High inflation and a rocky stock market may also be luring some retirees back to work or encouraging preretirees to work longer. When your dollars don’t stretch as far, adding income can help cover expenses more comfortably.

“Filling up part of your income need with some part-time work can be a really good thing at this time, especially if you enjoy doing it,” says Jason Hamilton, a certified financial planner in Orange, Calif. Earning a paycheck can also help retirees delay withdrawals from their retirement and investment accounts.

That’s especially helpful if the stock market is down in your early retirement years. Pulling money from your portfolio while it’s losing value in a market swoon presents what’s known as sequence-of-returns risk . If your account balance shrinks significantly, you have fewer assets to create returns during market recoveries, posing the threat that you’ll run out of money in a retirement that could last decades. “Going back to work or continuing to work is one of the most effective ways of mitigating longevity risk,” says Jeffrey Levine, a CFP in St. Louis.

As restrictions related to the COVID-19 pandemic lift and vaccines protect against severe illness, those who dropped out of the workforce to avoid contracting the virus may feel more at ease returning to the office or picking up a retail job. But if you’d rather avoid in-person contact, the rising prevalence of remote work provides greater opportunity to stay home and collect a paycheck.

Some of those who were forced out of their jobs by economic or other circumstances are going back to work, too. Falling back on skills from a similar job earlier in his career, John Bramhall, 69, began working as a medical transcriptionist last year after a hiatus from work. Previously, he was an actor, but he lost acting jobs because of economic and social conditions in his area, and finding acting work was difficult when the pandemic shuttered stage productions. His wife had stopped working after she suffered a stroke in 2018, leaving him as his household’s sole wage earner. He has been collecting Social Security benefits since age 62, but “I could see I was going to have to do something again. We weren’t going to make it financially,” says Bramhall, who lives in San Francisco. He commutes to a medical office four days a week and works about 25 hours weekly.

Working at retirement age comes with special financial considerations, such as managing Social Security payments, deciding how to contribute or withdraw from retirement accounts, and weighing health insurance options. Whether you’re extending your stay in the workforce or thinking about dipping back in after retiring, keep these issues in mind.

Social Security

If you’re not yet receiving Social Security checks, earning income in your sixties may enable you to wait longer before you start taking benefits. Generally, you can claim Social Security as early as age 62, but you’ll receive up to 30% less in each check than if you wait until your full retirement age , which is 66 for those born between 1943 and 1954 and gradually rises to 67 for those born in 1960 or later. For each year that you postpone benefits after your full retirement age up to age 70, your checks increase by 8%. In addition, “if you earn enough in those extra years, you might improve your benefit calculation. Your benefit is based on your highest-earning 35 years, and if you can bump off a lower-earning year, you’ll improve your benefit,” says Justin Pritchard, a CFP in Montrose, Colo.

If you’re receiving Social Security and earning income from work before you reach full retirement age, your benefits are subject to the earnings test. In 2022, Social Security withholds $1 in benefits for each $2 a worker earns over $19,560. In the year you reach full retirement age, Social Security holds back $1 in benefits for each $3 you earn above a certain threshold—for 2022, it’s $51,960. The good news is that the withheld benefits aren’t lost forever: The month you reach full retirement age, the earnings test vanishes, and your monthly check is adjusted so that you’ll recoup the forfeited benefits.

Regret your decision to take benefits early? You may have a shot at a do-over. Within the first 12 months of claiming benefits, you can withdraw your application. You’ll have to pay back to Social Security the benefits you’ve received, but when you start benefits again, you’ll receive larger checks, as if you had never claimed benefits previously. If withdrawing your application isn’t an option, an alternative is to suspend benefits once you reach full retirement age. You’ll qualify for delayed-retirement credits of 8% a year, up to age 70.

Pensions and Retirement Accounts

Drawing on a pension provides some workers the financial security to retire from their first career and take on a new challenge in a second act. That’s what Kurt Baze, 57, did after he retired in 2015 as an elementary-school principal in Oklahoma. He had long dreamed of becoming a National Park Service ranger, and he and his wife, DeeDee, plotted out the financial implications of Kurt transitioning to a new career. With the pension as a foundation, “we knew we weren’t going to be destitute,” says Kurt. They also had a Roth IRA , a life insurance policy and a health savings account to fall back on. They decided to move to Colorado, where Kurt began volunteering at Rocky Mountain National Park. DeeDee took a full-time job at a credit union to provide income and health insurance.

Kurt was soon hired as a part-time seasonal ranger for the park, and then he moved to full-time work, which provides health insurance for the couple now that DeeDee has her own business as a financial planner. Kurt manages the park’s Junior Ranger program as well as programming for school trips to the park. He’s a good fit for the job thanks to his background in education, and leaving behind the stress of his previous work has benefited his mental and physical health.

The pension that Kurt is collecting from his teaching career provides payments for the rest of his life, with DeeDee receiving 100% of the benefits if he dies first. And when Kurt retires from his park ranger job, he will be eligible for a second pension from the federal government. Working for a new employer shouldn’t affect a pension you’ve earned from a former job. But if you go back to work for a company from which you’re already collecting a pension, check its rules. It may halt payments while you are working, or it may allow you to take full pension benefits at a certain age when working. Working a few extra years can help increase the pension payout you’ll ultimately get.

Kurt is contributing to the Thrift Savings Plan , a retirement-savings account for federal employees, and getting a matching contribution from his employer. A second act can be a good time to plump up your savings for an eventual full retirement. If you’re 50 or older, you can take advantage of catch-up contributions to 401(k)s and IRAs —in 2022, that’s an extra $6,500 (on top of the standard $20,500 limit) for 401(k)s and an additional $1,000 for IRAs (which have a standard cap of $6,000 this year). And the longer you can put off withdrawing from your retirement accounts, the more time the funds can grow tax-deferred.

RMDs and other withdrawals. By April 1 of the year after you turn 72, you generally must start taking required minimum distributions from tax-deferred retirement accounts, including traditional IRAs and 401(k)s. If you’re working at age 72, however, you can delay RMDs from a 401(k) with your current employer to April 1 following the year you retire (but you must take RMDs from 401(k)s you have with former employers on the standard schedule). An exception: You can’t postpone 401(k) RMDs if you have an ownership stake of more than 5% in the company.

If this rule applies to you and you don’t expect to need income from your other retirement accounts when you reach 72, one strategy is to roll the other accounts into the 401(k) of the employer you’re with currently, if it allows such transfers. Whether that makes sense for you depends on the specifics of your plans and preferences. If the investment options in your IRA are better than those of your 401(k), you may want to leave funds in the IRA and take RMDs at 72.

Keep in mind that if you’re working when you take RMDs, income from your job may boost you into a higher tax bracket, possibly increasing the tax you pay overall. “Often, it’s a good idea for people to try to maximize income before taking Social Security and RMDs to smooth out the tax liability,” says Ariadne Horstman, a CFP in Palo Alto, Calif.

Separately, some 401(k)s come with another special rule that can benefit those who retire early and later switch to another job. Typically, you must be at least 59½ to avoid a 10% penalty on withdrawals. But if you leave your employer for any reason and your age is 55 or older (or 50 or older for public safety workers, such as police officers and firefighters), you can take penalty-free distributions from the 401(k) of the employer you just left if the company allows it. Income from such withdrawals may help you get by if you need to cover expenses between jobs.

And keep in mind that withdrawals of contributions to Roth IRAs are free of taxes and penalties anytime (in most cases, withdrawals of investment earnings are subject to tax and a 10% penalty if you’re younger than 59½). If you undergo a period in which your earnings are especially low—say, the time between leaving your first career and switching to a retirement job—that may be a good opportunity to convert any traditional IRAs and 401(k)s that you have to a Roth IRA. You may pay less tax on the converted amount than you would while working full-time with a higher income. Your money grows tax-free once it’s in a Roth, and you won’t have to take RMDs.

Health Insurance

The question of how you’ll get health insurance coverage hinges on whether you are at least 65 years old—when you qualify for Medicare —and whether you’re eligible for your employer’s health benefits. Many employers do not offer health insurance to part-time workers, but some prominent companies, including Costco and Starbucks, extend it to part-time employees who work a minimum number of hours.

You may be able to negotiate health or other benefits with your employer, even if its formal policies don’t include provisions for workers who scale back on hours. You may also be able to negotiate a 401(k) match as a part-time worker. “I don’t find that many employers are dangling these perks publicly and or even privately to their employees, but if you ask about it, you may be pleasantly surprised to get some of the things you want,” says Richard Eisenberg, who recently retired from full-time work and now writes “The View from Unretirement” column for MarketWatch, among other retirement gigs .

If you are ineligible for Medicare or employer insurance, alternatives include getting on your spouse’s employer plan, if he or she is working; using COBRA, a law that allows you to stay on an employer plan for up to 18 months after leaving your job; or getting a plan through the government’s health insurance marketplace at HealthCare.gov . If your modified adjusted income (which includes earned income, Social Security benefits, and investment, retirement-account and pension income) falls below certain levels, you’ll qualify for a government subsidy that will lower the premium. Typically, to qualify for a subsidy, your income can’t exceed 400% of the federal poverty level. For example, with a 2022 health plan, that threshold is $51,520 for a single person, or $69,680 for two people in a household in most states. A temporary provision of a COVID-19 relief law allows eligibility for the subsidy at higher income levels in 2022, capping premiums at no more than 8.5% of household income, and it increases subsidies for those with incomes at 400% or less of the poverty level. Unless Congress acts, however, the enhanced subsidies will expire at the end of this year.

Most-Overlooked Tax Deductions and Credits for the Self-Employed

Medicare enrollment. If you have access to an eligible employer health plan, whether through your own employment or that of a spouse, you can delay Medicare enrollment when you reach age 65 without penalty as long as you’re covered by that plan. But Medicare is likely a no-brainer if you’re paying hefty premiums and other out-of-pocket costs with your current plan.

If you’re dropping your other health insurance, make sure you sign up for Medicare within your initial enrollment period, which starts three months before you turn 65 and ends three months after the month you turn 65. If you miss this window, you may have to pay a late-enrollment penalty for as long as you have Part B once you sign up. Once you stop working or lose employer coverage (whichever comes first), you have eight months to sign up for Part B without penalty.

Lisa has been the editor of Kiplinger Personal Finance since June 2023. Previously, she spent more than a decade reporting and writing for the magazine on a variety of topics, including credit, banking and retirement. She has shared her expertise as a guest on the Today Show, CNN, Fox, NPR, Cheddar and many other media outlets around the nation. Lisa graduated from Ball State University and received the school’s “Graduate of the Last Decade” award in 2014. A military spouse, she has moved around the U.S. and currently lives in the Philadelphia area with her husband and two sons.

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‘Great Resignation’ Creates Job Opportunities for Retirees

Hiring demand has some thinking about going back to work for their own benefit.

After nearly three decades working with ManpowerGroup in the Steubenville, Ohio area, most recently as a market manager, Laurel McDowell decided it was time to retire. But she barely had time to enjoy it before the corporate office contacted her about coming back to work. They wanted McDowell to spearhead an initiative that would target older workers and help them find jobs.

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McDowell was intrigued by the opportunity to address a true need in the market. She believed in the benefits of hiring experienced workers . (“They’re dependable, they’re loyal, they come with a high skill set and are able to problem-solve,” she says.) And her experience made her well-suited to head up this initiative. But she also wanted more flexibility in her life. Soon, she was able to come to an agreement with her former employer and joined their team, heading up Job Connections for Mature Workers , which has consulted with about 350 mature workers.

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The historically tight labor market with the opportunities it holds is one reason some retirees may want to go back to work now. Others may find that either retired life isn’t how they pictured it, or they may need to work for financial reasons, says Carol Fishman Cohen, CEO and founder of iRelaunch, a career reentry consulting, training and events company. And such rehires are happening even at the highest levels. Cohen points to Carol Tomé, who had retired from leading The Home Depot in 2019 but returned to work as CEO at UPS in 2020.

Many retirees are thinking about going back

McDowell isn’t the only one coming out of retirement to seek new opportunities. A September 2021 survey by Resume Builder found that 34 percent of retirees have considered going back to work because of job opportunities that are now available. And 1 in 5 retirees (20 percent) say past employers have asked them to return because of the labor shortage.

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Career strategist Saundra Botts with the job search firm ExecuNet specializes in helping people age 50-plus find new jobs. She’s seen an uptick in demand for retirees and older workers in general. As companies grapple with both a tight labor market and record-setting numbers of employees leaving their jobs, experience is in demand, she says. But retirees may also see opportunities to be choosier and make an impact with their next work experience. “The biggest change I’ve seen is that when companies are in sort of a time of uncharted change, they really reach out to somebody who can help them navigate those waters,” she says.

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Gregory O’Connell sold his corporate turnaround consulting company in 2018 and retired, although he knew he’d eventually find the right opportunity to use his skills again. He is being courted regularly by those seeking to hire him. “Based on the demand, [I] have almost been forced, if you will, to listen to a lot of employers who are reaching out and looking,” he says. “I wouldn’t say I was actively looking for a position, but the market sectors and the demand as such presents a new sort of opportunity.” O’Connell is currently considering his options.

Choosing what works for you

Returning to work after retirement may involve a range of considerations, of course. First, some  retirees want to work full-time, but others need flexibility . Some of Botts’ clients left their jobs to do something that is meaningful to them, whether pursuing a role with a nonprofit or spending more time with grandchildren.

As McDowell considered the opportunity, she knew she didn’t want to work full time. She needed flexibility for other aspects of her life. “They met my needs on my terms, because they valued the experience and the expertise that I had, and they didn’t want it to walk out the door,” she says.

There may also be financial considerations. If a retiree is  collecting Social Security  and has not reached full retirement age and also earns income from work, his or her retirement benefit may be reduced for that year. And if the employee is taking disbursements from a qualified retirement plan, earnings may bump him into a higher tax bracket. So, it’s important for any retiree receiving retirement benefits to consult a tax professional to determine the impact of taking a job on her overall financial situation.

Winning retirees back

It’s not a given that retirees who resume working will go back to where they worked last. In the Resume Builder survey, of the retirees who said they would consider going back to work, just 41 percent said they would go back to their former position, while 59 percent would look elsewhere.

Employers and retirees should have frank conversations about the value they bring and the role that needs to be filled, Botts says. Retirees may be  looking for remote work options , as well as the ability to make a difference in the organization, she adds. One of the opportunities O’Connell is considering is in the oil and gas industry. While he says he doesn’t have experience in that area, his logistics and operational skills are transferrable. “And with that comes the notion of coaching more junior managers,” he says. “Oil and gas, finance, the real estate sector, insurance sector. It’s interesting, the number of sectors that are reaching out [to me],” he adds.

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And if the retiree has been away from the workforce for a longer period of time, it may worthwhile to ask whether potential employers support programs to help returnees get up to speed and comfortable with changes in technology and other organizational aspects, Cohen says. Such programs can help build confidence, upskill employees and give new hires an opportunity to meet other people in the organization.

The state of the labor market and the “Great Resignation” — as the current exodus of employees leaving jobs has been called — offer new opportunities for retirees who may want to get back to work. As these experienced professionals decide to  update their résumés  and LinkedIn profiles, they may also be an important solution for companies struggling to find the right talent.

Gwen Moran is a contributing writer for AARP who specializes in business and finance. Her work has appeared in many leading business publications and websites, including Entrepreneur ,  Kiplinger.com, Newsweek.com, and the  Los Angeles Times Magazine .

Editor’s note: A previous version of this article published on Jan. 13, 2022, misidentified Laurel McDowell as ManpowerGroup franchise owner. McDowell was a market manager for that business.  

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Watch CBS News

Retiring in America increasingly means working into old age, new book finds

By Aimee Picchi

Edited By Alain Sherter

Updated on: March 11, 2024 / 12:11 PM EDT / CBS News

Retirement in America increasingly means working into old age, with most seniors unable to support themselves on Social Security and savings alone, according to noted retirement expert Teresa Ghilarducci.

The reason: The nation's retirement system has left behind the bottom 90% of workers, Ghilarducci told CBS MoneyWatch in discussing her new book, " Work, Retire, Repeat: The Uncertainty of Retirement in the New Economy ." Ghilarducci, a labor economist and a professor at The New School for Social Research in New York, also said the nation needs a "bold plan," which she calls the "Gray New Deal" after the Depression-era New Deal, to shore up retirement for millions of Americans.

Ghilarducci's research shows that only 10% of Americans between the ages of 62 and 70 are both retired and financially stable. The majority of older Americans are either retired, but living below the standard of living they enjoyed while working, or still working because they can't afford to stop, she found in analyzing data from the University of Michigan's Health and Retirement Survey.

30% of Americans lack any retirement savings

That's perhaps no surprise given the sobering reality of retirement savings in the U.S.: About 3 in 10 Americans who are 59 or older do not have any money put away for retirement . At the same time, some policy experts and lawmakers point to a decades-long improvement in life expectancy as a solution to Americans' lack of retirement readiness. Because people are living longer, they argue, they should extend their working lives into old age.

Republican lawmakers have proposed raising the retirement age for claiming Social Security to 70, up from about 67 now, citing longer lifespans. And there's also a growing belief among younger workers that they'll be able to work into their late 60s or even longer, even though the average retirement age is 62 , with many older people leaving the workforce unwillingly, typically because they were fired or encountered health issues. 

"We found that most people who are retired didn't retire when they wanted to, but because they were forced out," Ghilarducci said. "Even though we have this idea that people could just decide to work a little bit longer, it probably isn't their choice."

In other words, you can plan to work longer, but life might have other plans for you. CBS MoneyWatch spoke with with Ghilarducci about her new book. It has been edited for length and clarity. 

Why is this book needed at this moment?

Teresa Ghilarducci:  The problem of American workers not having enough money in retirement has not gone away, and in some prospects it has gotten worse because of the growing increase in U.S. wealth inequality. A fake solution to the problem was emerging and getting stronger and had support in cocktail parties, in academia and in the halls of Congress. That solution was that we could solve the retirement crisis by people just working longer. 

And the reason why it was appealing is because it's pretty cheap — employers like it because more labor supply in the market just means a weaker labor force in terms of bargaining power. And I think individuals like the idea of it — the sound of it: "Oh, good. I could just like retire when I want to."

What I found is that when people approach retirement age and they don't have enough money, then they do stay in the labor market — but not in their career jobs. They have to go to much lower-paying jobs. And a lot of those jobs actually hasten death, hasten disability, morbidity and pain. And so what we are doing is forcing a group of people to live the end of their lives with more pain and more wear and tear than other people.

If lower-income Americans aren't living longer, yet they're also working longer in old age, does that mean their retirements are shorter?

We see big gaps with the rich and the poor in terms of who gets to retire. At the lower end, the typical person has 12 years in retirement, and at the higher end the wealthy are retiring for about 20 years. 

And at the lower end, those retirement years are filled with a lot of need for assistance with daily living, with high levels of morbidity. Whereas the rich not only get to retire for a longer period of time, but they're healthier for a greater share of that time.

It's been more than 40 years since the U.S. shifted to 401(k) plans from traditional pensions to fund retirement. How has that gone?

Experts 40 years ago put pen to paper and said, "This is all going to work out because if people start saving when they're 25 and 30 and keep it in the market for the entire time they're working, then they might have enough to supplement Social Security and keep their pre-retirement living standards."

But it turns out that people's careers and labor market experiences are not like what you see on an Excel spreadsheet. Most people suffer through two or three recessions, and at least one of those could affect you. If you've had a life event, like you've had to move or you've had a divorce, or you've had to draw down your 401(k) for whatever life's emergencies offer up, then that spreadsheet projection falls apart. 

The 401(k) system was too flimsy. It was a do-it-yourself system where people did not have the right tools to do it. It's sort of like me going to the grocery store and getting what I need to fix my plumbing, What has happened is that most of us are coming into retirement without enough money, and we have no way to make it last a lifetime.

Are there certain types of workers who have effectively been left out of the retirement system?

The design of the system creates more wealth inequality because it leaves out people without college educations; it leaves out people who are lower middle class and lower income. It leaves out people in whole industries.  A lot more workers are working on a contingent basis, so it leaves out people who don't have traditional employer relationships. 

The tax code and the design of the 401(k) has left behind basically the bottom 90% of the labor force.

You note that there's a belief people retire first and then claim Social Security, but you found that's not the case. What's happening?

One of the key assumptions behind the working-longer hypothesis is that you'll delay claiming your Social Security benefit, which gives you a huge benefit for claiming later. 

And to my shock, when I looked at the data I saw that most low-income workers collected their Social Security as soon as they could. And they did that to boost their monthly income from work. They stayed above the poverty line, but it also helped their employers because the employers of low-wage, older workers know that the Social Security system will come in and supplement what they don't pay their workers. 

It's very perverse. It means this ability to delay claiming is really a benefit that falls to the wealthy, who can afford to delay claiming. 

Tell me about what you call the Gray New Deal.

The name of the Gray New Deal emphasizes that the real solution has to be bold, just like the New Deal was bold. We have to support workers — older people who want to work as well as ensure against poverty in old age and make sure that people can maintain their living standards. 

One goal of the Gray New Deal is to make sure that a middle-class worker can remain a middle-class retiree. It gets people into an universal pension system into saving for retirement at the beginning of their careers — that principle is embodied in current legislation called the Retirement Security Act for all Americans . 

It's more money into the individual, private system, and more money into Social Security and then support for people who want to work, such as enforcing laws against age discrimination and more training for older workers. 

What grade would you give the American retirement system overall?

I give a D, because it's so inadequate for so many people and it's so unfair. It doesn't get an F because the top 10% of the labor force has done just fine.

Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.

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