Countries making their retirees go back to work

Retirement was once seen as the ultimate reward after decades of hard work. But this seemingly natural part of human life is undergoing a profound transformation. Across the globe, an increasing number of retirees are opting to return to the workforce, a trend popularly known as the "Great Unretirement." Driven by various factors, this movement is reshaping the traditional narrative of retirement as a time of rest and leisure.

Recently, the business corporate entity known as Preply conducted a study of the world’s 45 wealthiest nations. By analyzing their welfare, economic, and demographic data, Preply was able to determine which countries are the least and most friendly for retirees. Curious? Click through this gallery to see which countries made the top (and bottom) of the list.

The Great Unretirement

Ever since the COVID-19 health crisis spread across the globe and resulted in a tumultuous job market, many retirees (most often over the age of 50) have come out of the woodwork to reclaim jobs on the market.

Economic pressures

Rising living costs, inflation, and insufficient retirement savings are significant drivers of the Great Unretirement. Many retirees return to work to maintain financial stability, especially as pensions and savings struggle to keep up with evolving economic demands.

Labor shortages

Countries with aging populations face labor shortages, which prompts many employers to tap into the skills and experience of retirees. Governments and businesses encourage unretirement through flexible work arrangements and incentives to bridge gaps in critical industries.

Evolving perspectives

Traditional views of retirement as a time of inactivity have been drastically challenged as a result of cultural shifts around the world. Many retirees pursue part-time or flexible work opportunities for personal fulfillment, social interaction, and mental stimulation, finding purpose and identity beyond leisure.

A high likelihood

All of these factors can contribute massively to a retiree’s desire to return to the work force, and there are some nations where this can be seen in extremity. So, which countries have the highest likelihood of retirees returning to work? Let’s take a look!

10. Luxembourg

Unretirement in Luxembourg is influenced by its high cost of living and attractive financial incentives for continued work. The country’s aging population also pushes retirees to reenter the workforce to fill labor gaps in specialized sectors.

8. Iceland

Iceland’s small population and inclusive labor market encourage retirees to remain in or reenter work. A culture valuing productivity and purpose contributes to unretirement, alongside financial considerations and the need for experienced workers in key industries.

6. Japan

Unretirement in Japan is largely the result of the country’s rapidly aging society and severe labor shortages. Government initiatives and corporate strategies have also begun promoting reemployment of older workers.

4. Saudi Arabia

In Saudi Arabia, unretirement is driven by economic diversification and increased demand for experienced professionals. Older workers are encouraged to continue contributing to align with the nation’s Vision 2030 development goals, which aim to reduce the country’s dependence on oil.

2. Italy

Italy sees unretirement due to economic challenges, a rising retirement age, and gaps in pension security.

Changes

Interestingly, the United States doesn’t feature in the top 10, but can instead be found in place #17. Experts believe that the rising cost of living in the country and lackluster pension plans will drive more retirees to seek out employment in the coming years.

9. Croatia

Croatian retirees are unlikely to return to work because of limited job opportunities for older workers and a generous state pension. However, the number of retirees returning to the job market has been growing in recent years.

7. Australia

Australia boasts one of the world’s best national welfare programs, which is why retirees are less likely to return to work. Tax disincentives in the country and a cultural expectation of enjoying retirement contribute to this trend.

5. Brunei

In Brunei, retirees benefit from a generous state welfare system and familial financial support, reducing the need to work post-retirement. The cultural preference for resting in old age also discourages unretirement.

3. Netherlands

Dutch retirees rarely reenter the workforce due to well-funded pensions and extensive social safety nets. Flexible retirement schemes and above-average health care make unretirement unnecessary for most individuals.