The pandemic, war in the Ukraine and the consequent high inflation globally have impacted the lifestyle of many retirees.

Some have returned to the work world, while there are still others who are weighing their options.

Recently I had discussions with an “unretired” retiree, who has rejoined the workforce and plans to work for another three years. Realising that inflation would eat away the purchasing power of her retirement income, she sought advice on how to invest her pension lump sum. There are investors who want to grow their monies long term but are risk averse. Their focus is on preserving the principal which will over time have reduced value due to inflation.

Financial literacy is important, and retirees need to possess the right mindset in making investment decisions. A quote on Jamaican track and field sprinter Shelly-Ann Fraser-Pryce’s Facebook page is most fitting. It says:“Most times it’s not our circumstances that hold us back. It’s our decisions”.

At this time of global economic uncertainty, it’s not the war, or the pandemic that will keep persons from investing in the stock market, it is the decisions that are made during the crisis. As stock markets decline, little attention is paid to the impact of inflation on the future value of funds invested. Therefore, wise financial counsel is needed for pre-retirees, retirees and those who chose to unretire.

Currently in the United States there is a labour crisis. This presents retirees with an opportunity to unretire and once again contribute to the economy by reducing the labour shortage. According to the US Bureau of Labour Statistics, approximately 1.5 million retirees have returned to work since the pandemic. It’s reported that during the pandemic millions of seniors chose early retirement but are now returning to work at a faster rate than other age groups. Returning to work doesn’t mean that retirees are returning to the former salaries or jobs that they had prior to the pandemic. Usually when retirees return to work, they are paid less, and the positions are not as lofty as before. The economic situation has caused retirees to reassess their financial circumstances. With the fear of COVID-19 now decreased, offers of flexible work conditions, demand for labour and the challenge of living off a fixed income, more retirees have chosen to return to work in order to increase earnings and counter the high inflation as the cost of goods and services continue to escalate.

The high cost of health care is another reason retirees are returning to work. Health insurance for a younger employee is much lower than that for a retiree. Healthy retirees will choose returning to work for a few more years and increase savings and investments so that they can live comfortably in retirement. Some retirees who have also returned to work feeling safer, having taken the COVID vaccines, have more flexible workable hours and are able to work remotely.

At the same time, the economic climate has forced some retirees to return to work to make ends meet. Others are happy to return to work as this helps with social interaction, a relief from loneliness and depression after being restricted by the pandemic since 2020.

In Canada, more retirees are returning to work, opting for a blend of work and leisure. The need for more earnings and in other instances the desire for social interaction are main reasons for returning to work. .

As a financial advisor I have had meetings with retirees who have continued to work because the fixed pension is not sufficient to meet their needs, or they enjoy working, some transition to self-employed status. People who remain employed are at reduced risk of chronic diseases as they age, while some studies reveal that retirement reduces stress and mental illness conditions. One thing is sure, the state of one’s health in retirement will be influenced by the preparation or lack of preparation for retirement. The current global climate has seen employers targeting retirees to return to work now than ever before. Decades ago it was difficult for retirees to re-enter the workforce. But, employers have come to realise the immense experience and work ethics that retirees possess that can advance the organisation. This is an interesting era with varying opportunities for retirees to make a difference in the global economy.