More US retirees return to work as inflation erodes savings, Social Security COLA lags

A growing number of American retirees are rejoining the workforce, driven by persistent inflation and insufficient retirement savings, according to a Yahoo Finance analysis published June 2, 2026. The report, which drew over 1,400 reader comments, underscores financial strain despite a projected 3.9% Social Security cost-of-living adjustment (COLA) for 2027. The Senior Citizens League estimates the 2027 COLA would raise average monthly benefits by about $81 to $2,162, up from a 2.8% increase in 2026. However, many retirees say the bump won’t cover escalating living costs. The Social Security Administration is expected to announce the official COLA in mid-October 2026. Other factors cited include longevity risk—only one in three Americans accurately estimates how long a 65-year-old will live—and workplace age discrimination, which nearly a quarter of workers over 50 report experiencing. Some retirees return voluntarily for social engagement or extra income, but the trend highlights broader retirement security challenges.