1 In 6 Americans Think They Need To Come Out Of Retirement
According to new data from a Paychex survey and coverage by USA Today, one out of every six Americans are planning to unretire. That is to come out of retirement and rejoin the workforce.
This is on top of 55% of those that have already recently unretired out of the need for more money.
This could be a trend that is about to accelerate and get much bigger. What does it mean for investors? What should you do if you are retired or seeing that your retirement plan isn’t going to meet your needs in the future?
The Need To Afford Housing
The data reports that 10M households headed by someone 65 or older pay at least a third of their income in rent. 50% pay more than half of their income for housing.
Rising costs, especially those associated with housing are forcing many to try to come out of retirement in search of work and income.
It’s an issue exasperated by the recent $2.2T wipe out of wealth in the stock market. With many seeing their nest eggs dramatically slashed.
Even younger households now say they are panicking about being able to afford to pay back their student loans.
Ultimately, the need for shelter will never go away. In fact, even when we die we still typically need a place. Either to be buried, for a memorial, or to house our ashes.
The recent increase in rents may be painful for many renters, yet it has also been a huge windfall for landlords and real estate investors.
Investing To Make Ends Meet
There are huge problems with trying to come out of retirement. One, most companies are making layoffs or have hiring freezes in place. The jobs that may be available may require far different skills and knowledge than you’ve ever used before.
You may also end up hurting other benefits and income you have, or taking a bigger tax hit if you pursue more or new earned income.
You neither want to keep spending your nest egg and capital, or try to make ends meet with earned income.
Though you may certainly want to change what you are investing in.
For example, real estate. Right now, real estate investors are benefiting from inflation, higher asset prices, and higher rents. In many areas values are still going up. Even when they aren’t, there is still passive income, wealth preservation, and potential tax benefits.
You can engage actively, or passively through a fund, partnerships, and syndications in multifamily, single family, or self-storage properties.
