Older Americans Plan to Unretire in 2026

Recent surveys suggest that a growing number of older Americans are planning to unretire in 2026. Financial insecurity and rising living costs are the primary drivers behind this decision. Many retirees fear their savings will not last through their retirement years, prompting a return to the workforce.

Key data points from recent reports include:

• Nearly two-thirds of Americans worry they may have to reenter the workforce.
• Approximately one in eight Americans aged 65 and older plan to rejoin the workforce in 2026.
• Inflation has remained high, affecting housing and medical expenses.

While financial necessity is a major factor, many older workers also seek fulfillment and community. However, the job market presents challenges, including ageism and difficulty finding new employment.

Financial insecurity is the leading cause for the rising number of older Americans returning to work. Surveys released in recent months show that older Americans are increasingly worried about their savings lasting through a retirement that could span 20 to 30 years.

The US Bank 2025 Wealth Report, released in September, provides specific data on these concerns. The report shows that nearly two-thirds of Americans worry they may have to reenter the workforce. Conversely, 58% of people surveyed believe their money will last them in their retirement years.

Inflation has played a significant role in this financial strain. For the 12 months ending in November, inflation registered at 2.7%. This figure has been higher than the overall average for housing and various medical expenses. Consequently, 54% of older Americans who still work or are unretiring cited the high cost of living as a primary reason for their continued employment.

Senator Kirsten Gillibrand addressed the economic reality facing seniors: "Because of the rise in costs, people's fixed incomes, their Social Security benefits, aren't enough to cover all their expenses."

Multiple surveys confirm the trend of older workers rejoining the labor market. A survey by ResumeBuilder.com involving 3,574 Americans aged 65 and older reveals that nearly one in eight plan to rejoin the workforce in 2026 or have already done so.

The survey further breaks down the current status of older Americans:

• Over a third of older Americans still working do not plan to retire until the next decade.
• Approximately 4% of older Americans surveyed are currently applying for jobs.
• 8% returned to work over the last few years.
• Slightly over 70% reported being retired.

Another survey from AARP Research found that 6% of retirees went back to work in the past six months due to a negative economic outlook. These findings are consistent with previous iterations of similar surveys, indicating a sustained trend.

Despite the increase in older workers, the unretirement rate has actually declined from pre-COVID levels, dropping from 3.2% in late 2018 to 1.9% in mid-2024. This suggests that while many want to unretire, actually rejoining the labor market is becoming more difficult.

The demographic landscape of the workforce is shifting. In 2021, the Bureau of Labor Statistics projected that the labor force for Americans aged 75 and older would grow by upwards of 96% through 2030. Census Bureau data supports this, showing that in 2024, nearly 20% of people aged 65 and older worked at least part-time.

However, older workers face significant hurdles. The AARP Research survey found that nearly two-thirds of older workers believe it would be challenging for them to find another job. This is often due to longer stretches of unemployment compared to younger people and factors such as ageism.

Many older Americans are reluctant to leave their current jobs because they fear they will not be able to find another. In response to a difficult job market, some have opted for part-time employment or gig work, which are easier to secure. Others have returned to school or taken online classes to improve their skills.

Despite these challenges, a segment of the workforce remains by choice. A series of interviews with Americans working past their 80th birthdays found that 4.2% of Americans aged 80 and older work, the highest rate in decades. Some of these individuals stated they would not retire even if they had the means to do so.

The concept of retirement is evolving. Stacie Haller, chief career advisor at ResumeBuilder.com, noted, "For many seniors, retirement has become more flexible than final." This shift is accompanied by a lack of preparation for many. The US Bank report found that only 37% of working adults are actively preparing for retirement, and 48% contribute to retirement savings.

Senator Gillibrand highlighted the systemic issues contributing to this crisis: "We know that 47% of workers lack access to employer-sponsored retirement plans, and 55% report no dedicated retirement savings. We know that many seniors won't have enough money to retire comfortably."

Experts and politicians are calling for stronger support systems. There is a push for more flexible job opportunities and a more robust safety net so that returning to work is a choice, not a necessity. The goal is to ensure older Americans have the resources they need to live comfortably without facing discrimination in the hiring process.

Ultimately, while the desire to retire remains strong, the reality of economic conditions is forcing many to reconsider. Whether driven by financial need or a desire for purpose, the presence of older workers in the labor force is becoming increasingly common.