Market Data 
- Andrea, 64, faces a tough choice after a layoff: find a job or start collecting Social Security.
- Many older Americans rely on Social Security in retirement and struggle to pay their bills.
- About 13% of baby boomers on LinkedIn “unretired” in 2023, a five-year high.
When Andrea, 64, was laid off in February, she joined the ranks of many older Americans who unexpectedly find themselves looking to rejoin the job market.
She spent decades climbing the corporate ladder at various staffing and recruitment firms in Minnesota’s Twin Cities, taking on leadership roles and earning a six-figure salary. She had planned to keep working until she reached retirement age at 67.
Now, Andrea — whose identity is known to Business Insider but requested to use her first name for privacy — is weighing her options. She thinks about taking Social Security benefits earlier than she initially thought, but she’s worried about long-term savings and would prefer to land another role.
“I would have to really make some big paradigm shifts in my life in order to not dig into my retirement,” she said. “I would have to become super frugal, and I would rather work.”
Decisions about when to stop working and take Social Security have become a cornerstone of the retirement experience. Older Americans are eligible to take Social Security at age 62, or they can wait until their full benefit amount kicks in at age 67. Monthly Social Security checks, which averaged $1,924.35 in October, are many baby boomers’ main source of retirement income. But that’s often not enough unless it’s supplemented with other savings, like a 401(k) or investments.
Business Insider has heard from over 1,000 baby boomers about their retirement regrets. Many wished they had waited to receive their maximum Social Security benefit, while others retired early for reasons outside their control. For people like Andrea, a late-career layoff can derail their best-laid financial plans.
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Social Security may not cover all of Andrea’s expenses
With her looming retirement decision, Andrea feels like she’s “walking a tightrope” between starting her retirement and potentially outliving her savings. She said her husband, who is a retired attorney, receives several thousand dollars a month between his Social Security checks and pension. Andrea estimates her benefit check would be a little over $2,000 a month if she retired now — and she doesn’t think it’s enough to live on.
She said that paying for her family’s mortgage, insurance, car payments, healthcare, and 24-year-old son’s college tuition adds up quickly. She and her husband don’t want to dip into their 401(k), Roth IRA, or investment accounts until absolutely necessary.
Doug Ornstein, director of wealth management at TIAA, told BI that unexpected costs or layoffs are a common source of financial anxiety for hopeful retirees.
“Most folks’ biggest fear is running out of money and not having the dignity of being able to support themselves in their old age,” Ornstein said.
About 13% of baby boomers on LinkedIn returned to the workforce, or “unretired,” in 2023, a five-year high, per LinkedIn’s Economic Graph. A Federal Reserve analysis of its 2020 US household economics and decision-making survey reported that 14% of non-retired adults who experience a layoff borrow or cash out funds from their retirement savings.
Andrea wishes she knew that her choice to be a stay-at-home parent while her son was a toddler — as well as work in the United Kingdom for 10 years earlier in her career — would negatively impact her Social Security earnings. The benefits only account for years actively spent in the US workforce.
She added that workplace ageism is making it difficult for her to be hired again, despite her years of experience. She hopes landing another role will help her round out the roughly $5 million she wants to have saved to retire comfortably.
Andrea advises others to begin saving for retirement in their 20s and 30s.
“Even when I do land a new job, I will save as much of that income as I possibly can,” she said. “Because I don’t feel that my position is as strong as it should be.”
Have you had to return to work after retirement? Are you comfortable sharing your experience with a reporter? If so, reach out to [email protected].
