(Image credit: Getty Images)
You hit your 60s. Maybe you’re even sliding into early retirement, and suddenly the days stretch out in a way that feels both enjoyable and… weirdly empty. For many, retirement starts after that long-awaited exhale after decades of work. But then the quiet sets in. The structure of the 9-to-5 vanishes, and the identity you built around “what you do” starts to crumble. That’s when a surprising number of people decide to hit the late-career reset button, and they go back to work.
The reasons vary, and it’s not always because they have to. Although money often plays a part, sometimes it’s because something deeper inside pulls them back in.
A recent AARP survey shows that about 7% of retirees have returned to the workforce in the past six months, with more actively looking or planning to return. Nearly one in eight Americans over 65 either returned to work or intend to this year. And it’s not just financial pressure driving the return. Much of it is mental. The mental side of a late-career reset is real. Such a move can also be surprisingly rewarding for those who navigate it well.
Article continues below
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.
Profit and prosper with the best of expert advice – straight to your e-mail.
Why a late-career reset might be exactly what you need
“Assuming a financial plan was in place at retirement, and assuming one follows that with reasonable care, it will not be financial need that drives most people to ‘unretire’ but rather a need to be engaged and contribute,” explains Elizabeth Zelinka Parsons, retirement transition expert, lawyer, and author of the book, Encore: A High Achiever’s Guide to Thriving in Retirement. “Generally, they often find it much more motivating to define their goals according to individual purpose.”
While true, your identity may take a real hit. That’s because for years, your job title, salary and expertise quietly told you who you were. And, while stepping away can feel liberating at first, one morning you wake up and realize you miss the version of yourself that people turned to for answers. Retirement can trigger a quiet grief over lost purpose and social connection, according to a study published on PubMed. Phasing into retirement or going back to work, full- or part-time, can help reclaim a sense of self without sliding into a funk that hits some retirees hard.
But retirement is rarely simple and can involve a mix of fear, excitement and rethinking your future. Then there’s the very real concern about workplace “ageism,” a type of discrimination based on a person’s age. Will younger hiring managers see your experience as an asset, or will you be seen as overqualified and disconnected? Your confidence can also take a hit when you realize you might need to learn new tech and platforms or fit into an entirely different work culture.
What can often be even more unsettling is the internal tug-of-war: Do you still have what it takes? Are you too old to start over, and will you regret not just staying retired?
Studies on midlife and later-life career changes show that people who leap often end up happier and less stressed, and even report a renewed sense of purpose. One older study found 90% of career changers over 40 felt more successful and content afterward. In fact, experts overwhelmingly agree that when the work aligns with your skills or values, it boosts mental sharpness and provides social connection and structure that help deter cognitive decline.
(Image credit: Getty Images)
The practical side mixed with the mental
Some people “unretire” into bridge roles — temporary jobs taken to transition between careers or to fill a gap — such as consulting gigs, mentoring, or part-time positions. Others might take bolder steps. For example, the former corporate executive who becomes a community college instructor, the retired nurse who contracts to help families navigate long-term care, or the engineer who teaches workshops via YouTube.
What they all have in common is intentionality — deciding to reset a career thoughtfully and on purpose, rather than reacting to outside pressure. Although unretiring can be a reaction to boredom or a way to pay the bills, most often a successful reset simply answers the question, “What matters to me now?” What kind of contribution still feels meaningful?
Of course, not every late-career reset goes smoothly. Sometimes you find yourself back in a toxic environment, or you struggle with younger team dynamics. All the extra stress can make you wonder if returning to work was the right call.
But employers are finally starting to wake up. In today’s tight labor market, more companies are dropping the “overqualified” label. Boomers and late Gen Xers bring something valuable to the table, like institutional knowledge, being calm under pressure and the kind of mentoring younger teams sometimes need. Flexible hours, part-time roles, and remote options are becoming more common as organizations recognize that experience really does matter.
(Image credit: Getty Images)
So how can you mentally prepare for a late-career reset?
Start with honesty. Parsons has found that some entrepreneurs seeking a career reset reprioritize their goals from profit to purpose, with many entrepreneurs transitioning from a profit-driven role to a mission-driven role. “This allows them to easily align their skill sets with organizations driven by values.” Second-act entrepreneurs often find it much more motivating to define their goals in line with their individual purpose. “Instead of scaling for maximum revenue, they build businesses or return to jobs that matter, either to targeted communities or to the world at large.”
Talk to people who’ve done it. Update your skills through free or almost free online courses and volunteer projects to rebuild confidence. Small wins rebuild confidence fast. Rethink the narrative — you’re not starting from zero; you’re bringing decades of wisdom to the table.
Most importantly, permit yourself to try something new. A late-career reset doesn’t have to be all-or-nothing. It can be a consulting gig, a passion project with pay, or even a freelance position that keeps you engaged without the full-time grind.
(Image credit: Getty Images)
It’s only the beginning
A late-career reset isn’t always just about the paycheck. For many, it’s about staying connected to people, to a purpose and to the part of yourself that still has something valuable to offer. With longer lifespans and shifting attitudes towards age, phasing back into the workplace or unretiring isn’t a sign that you can’t hack retirement. It’s simply a smart and healthy way to stay engaged.
“The reset might feel daunting at first, but overcoming these barriers requires a mindset shift away from the “starting from scratch,” says Ilir Salihi, Founder at IncomeInsider. “Late-career resets most always work best when framed as redesigning your career around your strengths and longevity rather than as an attempt to catch up.”
