CLEVELAND — The Reality of Retirement: When the Dream Doesn't Match the Reality
Retirement is often seen as the golden age—a time to relax, travel, and enjoy life after decades of work. For many, it’s the dream they’ve worked toward for years. But as some retirees find out, the transition into retirement can bring unexpected challenges that leave them rethinking their decision.
Sue Finley and her husband, Mike Pella, are living this reality. Just a few days after ringing in the new year, Sue found herself standing in her living room, reflecting on her new phase of life. "I was looking around thinking, 'What am I going to do now?'" she recalls. Like many retirees, the transition wasn’t as smooth as she expected.
Mike, who also faced similar uncertainties, realized that he still had a need to stay active and productive. “I need to feel like I'm making a contribution somewhere,” he says. Mike and Sue are technically retirement age, but they aren’t quite ready to fully settle into the traditional retirement lifestyle. For them—and many others—the decision to leave the workforce can feel complicated.
A Growing Trend: Returning to Work in Retirement
A recent study by Caring.com sheds light on this trend, revealing that 14% of retired seniors plan to return to work. The reasons are varied, but many cite staying active and engaged, as well as financial concerns, like inflation, which hit a 40-year high in 2022, and can be a major factor pushing retirees to reconsider their financial security.
According to the study, 52% of seniors returning to work say inflation is a key reason for their decision. On average, these retirees are looking to plug a $500 gap in their monthly income, said John Farrell, Caring.com's director of financial planning and analysis and treasury.
The Impact of COVID-19 on Retirement Plans
Financial expert Lou Reyes, host of the Over 50 TV channel on YouTube, believes that the COVID-19 pandemic caused many to retire earlier than planned, leaving some without enough savings to weather rising costs. "We've had six consecutive months of inflation slowing, but the prices are still high," Reyes explains. He adds that while some people are choosing to return to the workforce for financial reasons, others are simply looking to stay engaged in their careers or industry.
Mike, for example, works part-time with students at Cuyahoga Community College, where he contributes his expertise in the student production office. “I feel like I’m putting back into the industry what I’ve taken out of it for 30 some odd years,” he shares. For Mike, working again is not only a way to stay active but also a chance to share his knowledge with the next generation.
Finding Flexibility: Freelancing and Second Careers
Sue, on the other hand, has found fulfillment in freelancing for a company she once worked for. The flexibility it offers has given her the freedom to live life on her own terms. “One of our major clients is a huge retailer that does all their pre-production work in the summer,” Sue explains. That meant she regularly had to rush back to work from their annual family vacation. But now, she says, for the first time in decades, she can relax on the trip.
“To know that [tight turnaround] wasn't always looming, made it easier to go back."
Advice for Those Considering Retirement or Returning to Work
Sue’s advice for others contemplating retirement is to carefully consider the emotional and social aspects of the decision. While some people may be eager to leave their careers behind, others, like Sue, find themselves missing the camaraderie and intellectual stimulation that work provided. “I have friends who never looked back, who don’t even go to the suburb where they used to work,” she says. “But I also have friends like myself who miss the interaction and the stimulation.”
Another key piece of advice comes from Lou Reyes, who emphasizes the importance of having a financial plan. "Start saving for retirement as soon as you start making money, even if it’s just small amounts. It adds up,” he says. Additionally, Reyes advises that retirees—and those nearing retirement—seek advice from trusted financial experts. “Find someone who will give you an objective opinion and not just tell you what you want to hear,” he advises.
So while retirement can be a time of relaxation and self-reflection, it can also present challenges that many aren’t prepared for. Whether it's dealing with financial gaps or simply finding a sense of purpose, retirees like Mike and Sue show that returning to work—whether part-time or freelance—can offer both financial relief and personal fulfillment. And for those nearing retirement, it’s crucial to have a plan in place that accounts for both financial needs and emotional well-being.