Full Retirement? an Examination of Factors That Influence the Decision to Return to Work

We examine a sample of retirees who either remain fully retired or return to work in some capacity. Surprisingly, we find that those who rejoin the labor force are no less financially prepared for retirement than are their counterparts who remain retired. Instead, the factors that significantly influence the decision to return to work are the availability of health insurance, whether the initial decision to retire is freely chosen, and the degree of satisfaction with retirement. However, the factors that significantly affect the decision to return to work differ between those who wanted to retire and those who were forced into retirement. © 2006 Academy of Financial Services. All rights reserved.