Why More People Are “Un-Retiring” — And How They Can Keep Building Retirement Savings

Retirement used to mean the end of work. But for a growing number of Americans, it’s just a pause.

Whether driven by rising living costs, market uncertainty, or simply the desire for purpose and social connection, more retirees are returning to the workforce—a trend dubbed “un-retiring.” But here’s the good news for those returning: un-retiring doesn’t just mean more income today. It also opens the door to boosting your future financial security by continuing to contribute to retirement accounts.

What’s Behind the Un-Retirement Trend?

According to recent labor data, the percentage of people 65 and older who are working has risen steadily over the past decade—and many of them are people who previously retired.

Here’s why they’re coming back:

• Financial Pressures: Inflation, longer life expectancies, and uncertain markets are leading some retirees to rethink their financial readiness.
• Mental & Social Benefits: Work can offer structure, purpose, and community—things people often miss after leaving full-time careers.
• Passion Projects: Consulting, teaching, starting a business, or working part-time in a field of interest gives retirees a chance to earn income while staying engaged.

Whether part-time or full-time, going back to work gives retirees another advantage: a chance to continue building their nest egg.

Retirement Contributions After Retirement: What’s Allowed?

Contrary to what many people think, returning to work after retirement doesn’t disqualify you from contributing to retirement plans. In fact, if you have earned income, you can likely contribute—even in your 60s, 70s, and beyond.

Still Working? You Can Still Contribute

• 401(k) or 403(b) Plans: If your new employer offers a retirement plan, you can contribute. In 2025, those aged 50 or older can contribute up to $30,500 (including catch-up contributions).
• IRA or Roth IRA: As long as you have earned income (not just Social Security or investment income), you can contribute to an IRA or Roth IRA. Contribution limits in 2025 for age 50+ are $7,500.
• Self-Employed? Even Better: If your un-retirement gig is freelancing, consulting, or running your own business, you can open a Solo 401(k) or SEP IRA. High-income earners may even consider a Defined Benefit plan, which allows six-figure annual contributions and major tax deductions.

Why Keep Contributing?

• Lower Your Tax Bill: Contributions to pre-tax retirement accounts reduce your taxable income, which is especially helpful if you’re in a higher bracket during your working years.
• Boost Your Future Savings: Even if you only work for a few more years, additional savings can stretch your retirement dollars further.
• Grow Tax-Deferred: Money in retirement accounts grows tax-deferred (or tax-free with Roth accounts), which can have a compounding effect—even later in life.

Planning Tip: Know the Rules

Returning to work can impact Social Security benefits, Medicare premiums, and required minimum distributions (RMDs). A qualified financial advisor can help you navigate these areas while optimizing retirement contributions.

Final Thought: Retirement Isn’t One-Size-Fits-All

Today’s retirees are redefining what it means to stop working. For some, it’s a break. For others, it’s a shift. And for many, “retirement” includes a return to work, new goals—and a second chance to build even greater financial freedom.

If you’re considering un-retiring, don’t just think about income. Think about opportunity. Continuing to contribute to your retirement plan can make a meaningful difference in the years ahead.