Editor’s note: Dave Buck is a longtime columnist with Rethinking65. Read more of his articles here.
I conduct a lot of e-meetings, engaging directly with retirees and financial advisors. I still worry I miss emotional signals through a computer screen versus being in-person. However, that was not the case when I was talking with Warren. Like many wealth managers, he has a diverse set of clients. However, he knows his customer base continues to get older, with more heading into retirement each year.
As we discussed this dynamic, I asked Warren, “How are they handling the transition?”
Shifting in his seat, rolling his eyes and taking a deep breath Warren blurted, “They are all over the place. Some are doing well. Others appear lost. What can be frustrating to me are those who choose to ‘unretire’ and don’t tell me until our regular review.”
I didn’t need to be physically in front of Warren to know he was a little exasperated. I inquired, “Any common themes on the ones who have gone back to work?”
Contemplating his response, Warren noted, “It is a reaction to their current circumstances. The only way they seem to know how to solve retirement is to go back to what they know, and that is work.”
Unretiring is a growing trend. The traditional notion of retirement as a complete cessation of work is evolving. Many retirees find that they miss the intellectual stimulation, social interaction, and sense of purpose that work provides. Sometimes, it takes years to manifest. In September and October 2024 alone, 335,000 men over 70 rejoined the workforce.
Additionally, financial considerations often come into play, with some retirees seeking added income to supplement their savings or to fund specific lifestyle goals. The unretirement trend is fueled by a desire for personal fulfillment and financial stability.
Advisors like Warren play a crucial role in helping clients navigate the unretirement landscape. Traditional retirement financial planning needs to be broadened to capture the readiness to leave a career, choices tied to work, a desired work environment, financial implications and the anticipated lifestyle.
Assessing Readiness and Motivation
Athletes train continuously to be ready for gameday. If they don’t train, their skills will erode. The same applies to a retiree wanting to go back to work. Warren tries to be more perceptive of his client’s attitude before they exit a career and while they are in post-career life. His coaching is expanding beyond money.
Should you be faced with an un-retiree, focus on understanding their readiness and motivation for returning to work. This involves discussing their reasons for wanting to work again — whether for financial reasons, personal satisfaction, or both. Advisors should also evaluate the client’s health, energy levels and ability to manage the demands of work along with their other retirement activities.
Exploring Work Options
Clients have a variety of options when it comes to unretirement. While it may be tempting to fall back on what they know, this can be a time of exploration. Advisors can help them study part-time work, consulting, freelance opportunities, or starting a small business. It’s important to consider the client’s skills, interests and previous work experience when evaluating these options.
Warren’s client didn’t need additional income, but they chose to go back directly to what they had always done. Their challenge was now trying to navigate the time restrictions their job was having on personal aspirations.
Balancing Work and Retirement Lifestyle
I am not a fan of the term work-life balance. Life is too hard to neatly compartmentalize personal and professional lives to equal segments. I prefer work-life flexibility.
One of the key challenges of unretirement is finding the right mobility between work and retirement life. Advisors should assist clients to create a flexible schedule that allows them to enjoy their retirement activities while still engaging in meaningful work. This might involve setting boundaries around work hours, taking regular breaks, and prioritizing time for hobbies, travel and family.
Evaluating Financial Implications
As you know, even if money is not an issue, receiving income from unretiring can have a significant impact on an established financial strategy. Returning to work can have major financial implications, both positive and negative. Warren had to walk through this with his un-retiree, after the fact.
Advisors should help clients understand how their earnings might affect their taxes, Social Security benefits and retirement account distributions. It’s also important to consider the potential costs of starting a business or pursuing new career opportunities. By carefully evaluating these factors, advisors can help clients make informed decisions that align with their long-term financial goals.
Maintaining Work Flexibility
One of the advantages of unretirement is the ability to maintain flexibility in work arrangements. Advisors should encourage clients to seek opportunities that offer remote work, flexible hours, or project-based assignments. This can help clients avoid burnout and frustration. Additionally, advisors can assist clients in negotiating terms with employers or clients to ensure that their work arrangements are both satisfying and sustainable.
Warren has come to the realization that more of his clients will unretire. Without any adjustments, he will find himself diverting time reacting to their actions, instead of proactively preparing them for a lifestyle strategy.
The unretirement trend presents a unique opportunity for financial advisors to support their clients in achieving a fulfilling retirement. By understanding their clients’ motivations, exploring work options, balancing work and lifestyle goals, evaluating financial implications and maintaining work flexibility, advisors can help retirees navigate this new phase of life with confidence and success. Unretirement is not just about returning to work — it’s about redefining retirement to include a meaningful investment of time on one’s own terms.
David Buck is the author of the book “The Time-Optimized Life,” co-author of the book, “The Retirement Collective,” owner of Kairos Management Solutions LLC, and founder of the Infinity Lifestyle Design program. As a certified professional retirement coach (CPRC), David works with financial services providers helping their clients create a post-career lifestyle strategy. To learn more, contact him at dave@kmstime.com or visit Infinity Lifestyle Design.
