According to the Center for Retirement Research at Boston College, the concept of “unretirement” — retirees returning to work — has been a sign of economic vitality. When older workers reenter the labor force, it reflects strong job availability and confidence in the economy. Looking at recent data, the unretirement rate has dropped to 1.9%, far below the pre-pandemic levels of around 3%. This suggests that retirees who want to work are finding fewer opportunities, and thus could signal a cooling labor market.
Why Are Retirees Going Back to Work?
Many retirees seek employment for two primary reasons:
- Financial necessity: Rising healthcare costs, longer lifespans, and inflation can strain retirement savings.
- Personal fulfillment: Work provides social interaction and a sense of purpose.
But when job openings shrink, those who need extra income face a dilemma: how to maintain financial stability without returning to work?
Enter Reverse Mortgages
A reverse mortgage can be a powerful solution for retirees who are struggling to “unretire.” Here’s why:
- Access to Home Equity: Instead of selling their home, a reverse mortgage allows them to tap into their home’s equity for cash flow.
- No Monthly Mortgage Payment*: Unlike traditional loans, monthly mortgage payments are not required; repayment occurs when they sell the home or pass away.
- Flexibility: Funds can be used for living expenses, medical bills, or even to delay Social Security benefits for a higher payout later.
Why This Matters Now
With fewer job opportunities for older workers, relying solely on employment to bridge financial gaps may not be realistic. Reverse mortgages offer an alternative that keeps retirees financially secure without the stress of job hunting in a tight labor market.
Bottom Line
If you are considering unretirement but finding the job market challenging, exploring a reverse mortgage could provide the financial breathing room you need — while enjoying retirement on your terms.
