The Boomerang Boom: Why Retired Boomers are Heading Back to Work

You probably thought your parents (or in-laws) were going to ride off into the retirement sunset—margarita in hand, golf cart on standby. But a surprising number of Baby Boomers are trading beach chairs for office chairs in a growing trend dubbed “unretirement” or, more cheekily, “boomeranging” back to work.

This isn’t just a one-off phenomenon. According to data from the U.S. Bureau of Labor Statistics, labor force participation among adults over 65 is near historic highs. In 2023, about 19% of Americans aged 65 and older were either working or looking for work—nearly double the rate from the late 1980s. For those actually employed, the numbers are even more striking: around 7% of Americans over 65 held jobs last year, the highest percentage ever recorded.

So why are Boomers making a U-turn on retirement?

 

 

Healthier, Wealthier… or Just Wiser?

 

First, let’s state the obvious—today’s 65-year-olds aren’t exactly slowing down. Advances in healthcare, coupled with a more active lifestyle, mean Boomers are living longer, healthier lives. A report from the International Monetary Fund even suggested that a 70-year-old today has the cognitive sharpness of a 53-year-old from two decades ago, and the physical vitality of someone in their mid-50s. Translation? Seventy is the new fifty. That added longevity means many retirees aren’t keen on sitting still—or letting their skills collect dust.

But it’s not just about staying busy. The financial squeeze is very real. Rising inflation, skyrocketing healthcare costs, and market volatility have exposed a hard truth: many Boomers simply don’t have enough saved for a comfortable, decades-long retirement. Surveys consistently show that more than half of Americans over 55 admit they’re behind on retirement savings. For some, that means full-time jobs; for others, it's side gigs, consulting, or part-time work.

 

Then there’s the post-pandemic wildcard—remote work. What once required a lengthy commute and rigid hours is now as simple as logging on from a home office (or a beach house with good Wi-Fi). This flexibility has made it easier for older adults to "unretire" on their own terms, often as freelancers or consultants. In fact, financial services and professional industries are seeing some of the biggest upticks in “boomerang” employees—those who leave, only to return later.

 

 

The Rise of the Boomerang Employee

 

The concept of the boomerang employee isn’t limited to retirees—but they’re a growing slice of the pie. ADP reported that in early 2025, about 35% of all new hires were actually rehires—up from 31% the year before. And the information sector, in particular, saw those numbers nearly double. It’s not hard to see why. Companies facing talent shortages and knowledge gaps are happy to bring back seasoned professionals who know the ropes and don’t need months of onboarding.

 

Far from being viewed as outdated, many Boomer employees are being welcomed back as mentors, project consultants, or hybrid workers who offer experience, flexibility, and a work ethic that’s hard to teach. And unlike the “retirees” of past generations, these workers aren’t just showing up for the paycheck—they’re seeking engagement, purpose, and yes, a financial buffer against the uncertainties of modern retirement.

 

 

What This Means for You (Yes, You)

 

If you’re a working professional of the younger generations, this trend might seem like a curious footnote—or maybe a relief if you’ve still got a parent who’s happily self-funding their hobbies. But there’s a bigger implication here.

 

The lines between career and retirement are getting blurrier by the year. The traditional model—work for 40 years, retire at 65, live off savings and Social Security—just isn’t a guarantee anymore. Longevity, inflation, market fluctuations, and shifting work norms are rewriting the playbook.

 

For your generation, that means two things. First, you’ll likely need to plan for a longer, more flexible working life. Whether that means delaying full retirement, shifting to part-time work, or pursuing new ventures later in life, your career path might be less linear than you think. Second, and more importantly, you’ll need a financial strategy that keeps pace with these changes.

 

Because here's the kicker: retirement isn’t just an age—it’s a financial position. The difference between retiring because you want to and working because you have to often comes down to long-term planning.

 

 

The Smart Play? Start Now.

 

The Boomerang Boom serves as a wake-up call, not a warning. It’s a reminder that life doesn’t always follow a fixed script—and that’s okay. But it also highlights the importance of proactive retirement planning.

 

A solid plan does more than track your savings, it accounts for health costs, tax strategies, market swings, and the possibility that you might want (or need) to keep working later in life. A professional financial advisor can help you map out different scenarios, so you're prepared whether you’re retiring at 55, 65, or boomeranging back at 70.

And here’s the truth most people miss: flexibility comes from preparation. The people who get to choose whether they “unretire” aren’t just lucky—they’re usually the ones who built a plan with enough cushion to make work optional, not mandatory.

 

So, while you’re climbing your career ladder, building your business, or juggling kids and mortgages, don’t forget to glance at the horizon. Retirement might seem far off now—but future you will be glad you didn’t leave it to chance.

 


Best regards,

Chandler