Rising Living Costs Push Retirees to Rethink Work, Spending

Retirement expectations in the U.S. are being forcefully modified by inflation, with new survey data showing more retirees working or open to working in retirement to offset costs.

IndeedFlex, an online marketplace for flexible and temporary work, found in a recent study that 30% of surveyed retirees were either working or open to flexible or temporary roles. Nearly two-thirds of retired respondents (63%) cited the increased cost of living as the primary reason for returning to work, while 32% cited not having enough in savings.

Retiree and future retiree respondents expressed similar concerns in a recent survey by Fidelity Investments. According to Fidelity’s “2026 State of Retirement Planning,” 50% of Baby Boomer respondents said the rising cost of living was impacting their retirement plans.

When Fidelity asked Generation Z, Millennial, Generation X and Baby Boomer respondents what kind of work they would want during retirement, the most common responses included gig work and side hustles (35%), starting a small business (29%), consulting part-time (26%) or switching industries altogether (20%).

When IndeedFlex asked retirees in which industries they would like to work, the top choice was retail (33%), followed by freelance or consulting roles (30%), hospitality (23%) and driver or delivery opportunities (20%).

Women were more likely than men to cite cost of living as their primary reason for working at 69%, compared with 53% of men. Women also showed greater interest in retail and hospitality roles, while men expressed stronger interest in consulting and driver opportunities.

IndeedFlex’s survey of 1,000 retirees across the U.S. and the U.K. indicated that U.S. retirees were more motivated by financial pressure to return to work, with 67% citing cost of living as a driving factor, compared with 54% of U.K. retirees.

Additionally, U.S. retirees showed greater willingness to work longer part-time hours, with 35% preferring 16 to 20 hours per week, versus 16% in the U.K.

Beyond retirees, rising inflation has also been driving broader financial strain among U.S. adults, according to Debt.com’s 2026 Credit Card Survey. Cost of living was a demonstrated significant strain for 55% of surveyed U.S. adults who used credit cards as a primary financial lifeline to cover basic necessities such as groceries, rent and utilities.

Also, due to inflation pressures, 46% of respondents had completely maxed out at least one credit card, and 57% reported that persistent inflation forced them to carry a larger monthly balance than they did a year ago.

The portion of respondents with credit card balances was 29% in 2026, up from 23% in 2025. The number of respondents who said they would rely on credit cards for emergencies rose to 61% in 2026, up from 51% in 2025. Additionally, 80% of Debt.com respondents who were already maxed out said they would still need to rely on credit cards if faced with a sudden financial emergency.

“When nearly half of those who have maxed out their cards owe more than $10,000 and a staggering 15% are carrying balances over $30,000, we aren’t just looking at a budgeting issue; we’re looking at a financial emergency,” said Howard Dvorkin, Debt.com’s chair, in a statement.

Debt.com surveyed 1,112 U.S. adults on February 17 about their credit card usage, and responses were collected through SurveyMonkey. IndeedFlex commissioned Attest to conduct a survey of 500 U.S. retirees and 500 U.K. retirees in February.