62 and Available: Return-to-Work Retirees Have Plenty of Leverage

Labor shortages in this country have been discussed at length during the pandemic. In December 2021, there were 10.9 million job openings and only 6.3 million hires, according to the U.S. Bureau of Labor Statistics.

Retirements are a major contributing factor. According to a Pew Research Center study, there were 1.5 million retirements in 2019 which jumped to 3.2 million in 2020.

What does that mean for those of you in the coveted group of early retirees? It’s time to flex your muscles and use your leverage. If you are interested in returning to work for personal reasons or to help ease the burden of a national shortage of workers, then you might be in a position of power to set up your situation so you can enjoy work more than ever before.

Testing the Waters

For years, workers nearing retirement (age 60–65) often chose to toil a little longer in order to make it to Medicare eligibility age (65). Too few employers were willing to accommodate those employees in fulfilling their desire to ease into retirement (e.g., going down to 30 hours/week while keeping health benefits). More recently, older workers are now more in demand due to work ethic and institutional knowledge.

There are several ways to test the waters and determine what opportunities might be available for you:

• Contact your past employer(s). Reach out to any companies you have worked for in the past to see if they would like to take advantage of your familiarity with the business. Even if they know you won’t be staying more than a few years, your in-depth knowledge of the role and lack of need for significant training or orientation might be enough for them to take you back.
• Contact other companies in your former industry. Not interested in the company you left (or maybe they don’t have any openings at the moment)? Consider reaching out to other local businesses in your niche or industry. 
• Consider a consulting role. Better yet, reach out to all of them and offer your services as a consultant. This option may not offer benefits, but would give you a lot of leeway with setting your own hours and choosing projects that interest you most.
• Check with a local temp agency or recruiter. Many people truly enjoy the variety and challenge of filling roles with a temporary need. Even if you don’t ultimately end up choosing this route, you may be able to gather information about demand for your particular set of skills.

Now that you know whether a return to work is possible for you, it’s important to take steps to create a successful experience.

Set Yourself Up for Success

It probably feels good to be in demand, but remember to use this shift in power to your advantage. Think about what you want, what you need, and how you can create a mutually beneficial agreement for all involved.

In addition, you may want to talk with your wealth management professional to make sure any arrangement won’t affect existing benefits, such as:

• Are there any limits or parameters for income you bring in?
• How will this new job affect your taxes?
• Should you adjust any draws you are making from retirement accounts?
• If you make a substantial amount of money post-retirement, will it affect your social security earnings?
• Even if the job doesn’t offer benefits, is there an advantage to using that money to purchase health insurance or pay for other benefits?

Your financial professional can answer questions and prepare you for any changes that might come from returning to work.

If you would like to meet with someone to discuss your options and opportunities, contact our Wealth Management team today.