As we’ve previously noted, there is an increasing trend today for older workers to stay in, or return to, the workforce beyond the theoretical retirement age of 65 (the age at which Medicare kicks in for most people). While that trend reflects both older adults who enjoy their work lives and find meaning in their continued employment, it also reflects the reality that many older adults simply lack sufficient savings to retire and maintain some semblance of their current lifestyle. In fact, as a recent survey from AARP reports, 1 in 5 Americans aged 50 and above say they have no retirement savings, and almost 50% worry they will not have sufficient money to last during their retirement years. Almost 25% of not-yet-retired adults 50 and over say they never expect to retire, and 70% are concerned that prices are rising faster than their incomes. For those who remain in, or return to, the workforce, life is not always so easy. Finding a position may be challenging, earning a decent wage may be difficult, and putting that earned money aside may be next to impossible, with the extra income necessary for current expenses. As one woman whose return to work resulted in handing out samples at Costco said, “My plan was to put the checks into a savings account, but it didn’t work out that way. I had to use it for cost of living.”

There is a cohort of well-educated, well-compensated retirees who are forging a different vision of what retirement can mean by figuring out a new encore career or by creating a new business and sense of purpose. Their notion of “unretirement” and returning to work comes more from the loss of a social circle or purpose in their lives rather than from economic hardship. But for many who had hoped for their own “happily ever after” once retiring, the reality is that they’ve had to seek out a “side hustle” to supplement their Social Security payments and whatever other savings they may have. In fact, a 2023 Bankrate survey found that 25% of those between the ages of 59-77 say they need that kind of side hustle to get by and in some way retain their standard of living. So what kind of side hustle is available? A recent article in Forbes suggests you use your passions to fuel your “encore” gig. For example, do you love to cook? Perhaps seeking out opportunities as a personal chef, recipe creator, or meal planner for a caterer might work for you. Are you passionate about playing golf? Golf tournaments offer employment opportunities, as do golf clubs and golf shops. Or, do you have expertise in tutoring in a specific subject? Several online platforms allow you to search for creative, freelance opportunities that may match your interests or utilize your now underworked skills. For ideas, take a look at the websites Upwork, ServiceScape, PeoplePerHour, and Wyzant as places to put your skills to use in today’s digital landscape. 

But if you’re assuming that age 65 will be the moment that you’ll need to start considering side hustles and encore careers, you may need to think again. It turns out, at least according to a new survey, that not everyone even makes it to 65. According to a recent survey from The Employment Benefit Research Institute, as described in a  Wall Street Journal article,  while many assume they will retire at age 65, for years the median actual age of retirement has been 62 (that’s the earliest age someone can claim Social Security benefits). It appears that many of us are overly optimistic about how long we can or will be able to work. What’s more, that optimism continues when it comes to earning income post-retirement. The survey reports that while 75% of those surveyed anticipated some kind of employment after formal retirement, only 30% of retirees actually have that. There are many reasons, good and bad, that cause people to leave employment before they expect to (health problems or caregiving obligations, for example). Fortunately, the survey found that most retirees find they can still live a reasonably happy and supported way, even if their expectations about retirement are not completely met. That’s good news, given the demographic trends that foretell a surge in the number of retirements in the years to come.