More Americans aged 50 and older are stepping out of retirement and back into jobs, as financial pressures continue to mount. According to an AARP survey, some older Americans are returning to work to cope with the increasing cost of living, highlighting how retirement is no longer a permanent finish line for many.
The new survey from AARP, which represents people aged 50 and above, shows that a growing share of retirees are “unretiring.” The main driver is money. With everyday expenses climbing, many older adults say they need an additional source of income to stay financially stable.
Over the past six months, 7% of retirees reported rejoining the workforce, up slightly from 6% who said the same during the summer of 2025. The most recent findings are based on interviews with 2,083 adults aged 50 and older conducted in November and December. That followed a summer poll of 2,362 respondents in July and August.
Carly Roszkowski, vice president of financial resilience programming at AARP, said the traditional idea of retirement no longer matches reality. For many Americans, retirement is not a one-time exit from work but a flexible phase that can change as circumstances do.
Why People Are “Unretiring”
AARP’s data shows that people typically retire because they feel financially prepared or because of health issues or disabilities. But for those now returning to work, finances dominate the decision.
Nearly half of unretired respondents—48%—said financial necessity or a poor economic outlook was the main reason they went back to work. Others cited non-financial motivations: 15% said they were bored, while 14% said they wanted to stay active and engaged.
Among respondents who are currently working or actively seeking jobs, 41% said rising daily living costs were their biggest motivation for staying in the labor force.
A Tough Job Market for Older Workers
Despite the need to earn more, returning to work is not easy for many older Americans. AARP’s survey found that 67% of older workers believe it would be difficult to find a new job right now. Age discrimination was the most commonly cited barrier, followed by health limitations or disabilities.
Job security is also a concern. About 24% of older workers said they worry about losing their jobs within the next year. Those fears come as layoffs surged in January, reaching the highest level for the start of a year since the 2009 global financial crisis, according to Challenger, Gray & Christmas.
Geoffrey Sanzenbacher, an economics professor at Boston College and a researcher at its Center for Retirement Research, noted that the desire to work does not always translate into opportunity. Some retirees remain out of the labor force not by choice, but because health challenges or limited job options keep them from returning.
Inflation’s Lingering Impact on Retirees
Sanzenbacher said older Americans are facing a difficult mix of above-normal inflation, market volatility, and a cooling job market. Many retirees rely heavily on Social Security, sometimes supplemented by retirement investments.
When investment returns fall short and Social Security cost-of-living adjustments fail to keep pace with expenses, retirees can feel squeezed. That pressure often pushes people back into the workforce.
“People really are sensitive to inflation,” Sanzenbacher said, adding that even modest income increases may not feel like enough when prices for essentials continue to rise.
Support for Older Job Seekers
AARP is trying to ease the transition for older workers by offering resources aimed at improving hiring prospects. One initiative includes a partnership with job board Indeed to highlight openings at employers that value experience and welcome workers of all ages.
As living costs remain elevated, the survey suggests that unretirement may continue to grow. For many Americans, retirement is becoming less of an endpoint and more of a pause—one that can be reversed when financial reality demands it.
