Rising costs are pushing more retirees back into the workforce as fixed incomes struggle to keep pace with inflation, unexpected expenses and family obligations, The Washington Post reports.
In 2025, 18.4% of Americans ages 65 and older were employed, while Federal Reserve data found that 16% of people who considered themselves retired had worked for pay in the previous month. Among those working retirees, 52% cited financial reasons, up from 45% in 2024, while the share saying they needed the money to make ends meet rose from 25% to 30%.
Prices for goods and services purchased by Americans 62 and older rose about 23% between August 2021 and August 2026, adding pressure from higher grocery costs, property taxes, insurance premiums and other expenses.
Debt can compound the problem, with 33% of adults ages 60 and older carrying a credit card balance at least once during 2025. Financial advisers say retirees often underestimate how much expenses can change over time, particularly irregular costs such as home repairs or financial support for family members.
Returning to work can also affect Social Security benefits, taxes and Medicare premiums for some retirees. Advisers recommend testing a retirement budget before leaving the workforce, reviewing several months of bank and credit card statements to identify irregular expenses, and setting aside money for unexpected costs. The goal is to identify potential gaps while a paycheck is still coming in, rather than after retirement savings are already under strain.
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