Retired and looking to return to work? Here's what you need to know about "unretirement"
Retirement is an accomplishment many aspire to. However, Roger Reynolds, CEO of Reynolds Financial Group, says it's critical to prepare for those golden years in advance.
"People spend so much time dreaming about retirement and how wonderful it'll be. Sometimes, when they get there, they're disappointed. It's not always what we want it to be and as glorious as you think it'll be," Reynolds said. "The first year is fine, but then they get complacent or disparaged of lose the joy of retirement. Too many times we make emotional decisions, and we don't worry about the financial implications of our decisions."
He tells CBS News Colorado's Mekialaya White there's a growing trend in retired people wanting to rejoin the workforce, or "unretire."
"Unretirement is where somebody retires, has the big retirement party, and says, you know what, maybe I should go back to work," he explained.
About 20% of retirees are considering it, according to data from Paychex.
It's a higher number than in years past, and there's a variety of reasons why.
"One of the big ones right now is inflation. Their expenses are going up. Their market accounts are going down -- so it's kind of a double whammy," Reynolds said.
He encourages you to weigh your options first and ensure you unretire the correct way. Consider the financial implications. "When we factor in our income, our salary, maybe some older pensions -- lots of potential sources of income, that means higher taxable income."
That, in turn, means higher tax brackets. Another factor to consider is social security.
"If you're making more money with a job, like an extra $70,000 a year, that can have a huge impact on your social security benefits."
So before you decide to head back to work full-time, Reynolds has some recommendations.
"Maybe working part time, volunteering, joining social groups to stay involved and not cause financial problems at the same time."
You can also consult with a financial advisor to ensure you're taking the best steps going forward.
