Retirement is a financial milestone many Americans aim for, but more and more retirees are returning to the workforce lately due to financial strains exacerbated by market volatility and inflation. This trend, dubbed "unretirement," is gaining momentum as retirees seek additional income to cope with rising living costs.

Recent surveys reveal that about 44 percent of retirees are contemplating returning to work. This shift is largely driven by inadequate increases in Social Security benefits that fail to match the high inflation rates experienced in recent months. Despite a 3.2 percent cost-of-living adjustment in 2024, retirees continue to struggle financially, with the actual rate of inflation surpassing this adjustment in March, April and May.

Since President Joe Biden took office, inflation has been a persistent issue, with the consumer price index showing a significant increase of 19.4 percent by early 2024. This economic challenge has led to a diminished purchasing power for retirees, as noted by Social Security and Medicare analyst Mary Johnson.

The average monthly Social Security payment in 2024 stands at $1,907, which falls far short of the approximately $4,818 that older Americans reported spending monthly in 2022. For many, Social Security was never intended to be their sole income source in retirement, yet a substantial 27 percent of Americans rely on it exclusively, according to recent surveys.

Adding to these financial pressures are soaring costs across essential categories like rent, gasoline and groceries. For instance, grocery prices have surged by over 21 percent since early 2021, while shelter costs have risen by 18.37 percent. Energy prices have seen an even steeper increase of 38.4 percent, further straining household budgets.