More Retirees Are Working Past Retirement Age—Not by Choice, but Necessity: The Rise of “Involuntary Encore Careers”

In an era of rising living costs and financial uncertainty, retirement is no longer the carefree stage of life it once was for many. Across the globe, an increasing number of retirees are returning to the workforce—not because they want to stay busy or pursue passions, but because they must. Economists, policymakers, and sociologists have a term for this phenomenon: “involuntary encore careers.” It reflects a growing reality where older adults work past traditional retirement age out of financial necessity rather than choice.
Historically, retirement represented the culmination of decades of labor. People would step away from their careers, enjoy the fruits of their labor, and focus on hobbies, travel, or family. Today, this vision is increasingly under threat. In the United States, the Bureau of Labor Statistics reports that the employment rate among individuals aged 65 to 74 has risen steadily over the past twenty years. Similar trends are emerging in Canada, the United Kingdom, and parts of Europe and Asia, signaling a global shift in how retirement is experienced.
Financial necessity is the primary driver of this trend. Despite years of employment, many retirees find their savings insufficient to cover day-to-day expenses, rising healthcare costs, and debt obligations. Pension systems have struggled to keep pace with inflation, and social security programs in many countries provide only modest support. As a result, retirees are often forced to re-enter the workforce to maintain basic financial stability.
Healthcare costs, in particular, loom large. In countries without universal healthcare coverage, retirees may need to work to afford insurance premiums, prescription medications, and potential hospitalizations. Even in nations with public healthcare systems, supplemental coverage and out-of-pocket expenses can be significant. For some, continuing to work is as much about accessing healthcare benefits as it is about earning money.
Another factor facilitating this trend is the changing nature of work. The rise of flexible, part-time, and remote employment has made it easier for older adults to rejoin the labor market. Consulting roles, freelance work, and gig economy opportunities allow retirees to contribute their expertise without the physical demands of traditional employment. For some, these arrangements offer a sense of independence while supplementing income, though for many, financial pressure remains the primary motivator.
While working past retirement age can provide some benefits, such as social interaction and mental engagement, it also comes with challenges. Older workers often face age-related discrimination, limited career advancement, and lower wages compared to younger colleagues. Moreover, working out of necessity rather than choice can be psychologically taxing, turning what should be a period of rest and reflection into a stage of stress and obligation.
This trend has profound societal implications. The rise of involuntary encore careers highlights gaps in retirement planning, financial literacy, and social safety nets. It raises important questions about how governments and employers can better prepare older adults for retirement and ensure a dignified life for aging populations. Solutions may include stronger pension systems, incentives for retirement savings, phased retirement programs, and policies that support continued employment without forcing economic hardship.
Interestingly, not all retirees who work past retirement age view it negatively. Many find purpose, structure, and social connection in their continued employment. For those who can pursue flexible roles aligned with personal interests, working beyond traditional retirement can be enriching. Yet, the distinction remains critical: when work is a choice, it can enhance life; when it is a necessity, it underscores financial vulnerability.
Experts emphasize the importance of early planning to mitigate the need for involuntary work in later life. Diversifying investments, contributing to retirement accounts, and managing debt prudently can help ensure that retirement is a period of choice rather than financial survival. Furthermore, policymakers and financial institutions must consider the impact of inflation, healthcare costs, and changing demographics to provide meaningful support for future retirees.
The rise of involuntary encore careers reflects both economic pressures and evolving life expectancies. Retirement is no longer a rigid milestone but a flexible stage shaped by circumstance, resilience, and the realities of modern life. As societies grapple with this shift, understanding the motivations, challenges, and opportunities associated with working past retirement age is essential. It highlights the complex interplay between economics, social policy, health, and individual well-being in shaping how people experience the later stages of life.
Ultimately, the growing number of retirees returning to work out of necessity signals a need for reflection and action. Ensuring that future generations can retire with dignity, financial security, and freedom of choice requires foresight, planning, and policies that address the economic realities of an aging world. Involuntary encore careers may be rising, but with the right strategies, retirement can still become a time of fulfillment, rest, and purpose—rather than obligation.