Sharon Tagle believed that her financial strategy was solid when she retired seven years ago, anticipating a comfortable lifestyle in her golden years. However, recent economic pressures have prompted the 68-year-old to re-enter the workforce. In December, Tagle secured a part-time position at Home Depot, working as a cashier for 20 hours a week. She attributes her decision to return to work to rising inflation and the unsuccessful sale of her home, which have weighed heavily on her finances.

Tagle earns $15 an hour and plans to keep working for several months, potentially longer if her financial situation does not improve. Reflecting on her earlier retirement, she admitted, Im sorry that I left my job as soon as I did, but things were getting to me, and I just didnt want to work anymore. Living in Tampa, Florida, she expressed some regret over not managing her expenses more frugally, noting, Were still having a good time, just not having it as much.

Before her retirement, Tagle worked as a personal injury claims adjuster, amassing about $250,000 in savings. She and her husband rely on a combined monthly Social Security income of approximately $3,400. The couple had hoped to sell their Florida home two years ago to relocate to a state with a lower cost of living, but their efforts to find a buyer fell short.

Tagle's experience is increasingly common among older Americans, many of whom are either holding on to their current jobs or returning to work due to economic uncertainty and anxiety regarding their financial futures. A recent report from Business Insider revealed that numerous older individuals are reconsidering their retirement plans, driven by fears about the stability of Social Security, Medicaid, and other essential government benefits amidst potential federal budget cuts. Additionally, concerns about the impact of ongoing tariff policies on the stock market have further exacerbated these fears.

Geoffrey Sanzenbacher, a research fellow at the Center for Retirement Research at Boston College, pointed out that while some older Americans are able to return to work, many face significant barriers. He explained that numerous individuals, particularly those who held physically demanding jobs, may be unable to return to the workforce due to health issues or a lack of suitable job opportunities. Many of these workers did not have access to employer-sponsored retirement plans, further complicating their financial situations.

In early April, House Republicans advanced a budget proposal that includes significant cutsamounting to $880 billionto critical programs under the House Energy and Commerce Committee, which primarily oversees Medicaid and Medicare. As details of this proposal are set to be further refined, concerns loom about potential reductions to federal Medicaid funding.

While former President Trump has publicly stated he will not cut Social Security benefits or alter Medicare, the Social Security Administration has issued warnings about impending job cuts that could impact as many as 7,000 employees. Such reductions could lead to longer wait times for recipients seeking assistance, raising further alarms among retirees relying on these benefits. Former SSA Commissioner Martin O'Malley and current staff have indicated that these disruptions may result in interruptions to benefits for many.

The fear of a potential recession has also grown among investors and economists, although opinions remain divided on the likelihood of such an event. This uncertainty has nonetheless contributed to the decision of many older Americans to return to the workforce.

However, the path back to employment is fraught with challenges. Amanda Clayman, a financial therapist, noted that older job seekers often face ageism and other biases that can hinder their job search. She advised that those re-entering the workforce should remain open to a variety of job opportunities, as even a modest supplementary income could significantly help their financial situation. The goal may no longer be finding the right job or what the right job might be, Clayman explained, encouraging older Americans to consider temporary or part-time roles, even if they are not ideal.

For some, the return to work includes the prospect of launching small businesses. Diann Witherspoon, 72, is contemplating restarting her fiber art and quilting business due to recent financial pressures. Residing in Ohio, Witherspoon has always lived paycheck to paycheck while raising two special needs children. She has held various accounting and property management jobs while pursuing her passion for sewing on the side. After enduring back and knee surgeries, she found her job options severely limited.

Witherspoon experienced a layoff in 2017, coinciding with her return to work post-surgery, and faced additional losses when her husband passed away from lung cancer. After closing her quilting company in December 2022 as she navigated her grief, Witherspoon is now preparing to sell new patterns online and possibly teach classes. She aspires to generate an income of between $2,000 and $5,000 monthly through these efforts but wishes to keep her business manageable enough not to require hiring employees. I just want to be able to sustain it myself so that we can survive, Witherspoon stated, adding, For the first time in 72 years living in this country, I am afraid.

Others, like Moira MacLean, 69, face similar struggles. After retiring from her role as a social assistance case manager 2 years ago, MacLean had anticipated needing to return to work at some point. Living in a retirement community in Washington, she has relied on savings and her $2,280 monthly Social Security payments. However, with her financial resources dwindling, she has begun searching for a job in her field, although she has yet to find success. Attempts to start an Amazon third-party selling business have put her in debt, compounding her worries. There is zero room for investing anything differently than I already have, MacLean lamented. I live too close to the edge to do anything about that.

Similarly, Pam Hovland, 70, grapples with the challenges of finding employment. After a debilitating health issue forced her into retirement around 2005, she has relied on disability income, which transitioned to Social Security in 2020. Although she has managed to reduce her rent through a Department of Housing and Urban Development program, Hovland is still searching for customer service or fast food roles to help cover her expenses. I desperately need to get back to work, she expressed. But because I didnt build up enough money when I became disabled, Im very much scraping by.