The Rising Tide of Older Workers
Since reaching a low point in the mid-1980s, the labor force participation rate of adults aged 65 and older has nearly doubled, reaching a 57-year high in 2019 and hovering around 19–20% in recent years. This trend is reshaping the American workforce and challenging traditional perceptions of retirement. While the percentage saw a minor dip from 22.5% in March 2022 to 22.0% in March 2024, the long-term increase is undeniable.
The rising number of older workers is not a uniform phenomenon. The data reveals that different age groups within the 65+ demographic have varying participation rates. For example, in 2022, nearly one-third (33.3%) of those aged 65 to 69 were still in the workforce, compared to just 8.2% of people 75 and older. This suggests that many older adults choose to phase out of full-time work gradually rather than stopping abruptly. Furthermore, a substantial percentage of older Americans who continue to work shift to part-time employment. The BLS reported that in 2024, 38.3% of employed people aged 65 and older worked part-time, significantly higher than younger demographics.
Why Are Older Americans Working Longer?
Multiple factors are driving the trend of working past the traditional retirement age. These reasons can be categorized as financial, personal, and health-related.
- Financial Security: For many, working longer is a financial necessity due to insufficient retirement savings, rising inflation, and increased life expectancy. The shift away from defined-benefit pensions to individual 401(k) plans has placed more retirement responsibility on individuals, leaving many unprepared. A paycheck can supplement savings and delay withdrawals, allowing retirement assets to continue growing.
- Health and Longevity: Americans are healthier and living longer than in previous generations. With improved health, many older adults are physically and mentally capable of continuing to work and want to remain active. Some studies even suggest that working past 65 is associated with better overall health and a lower risk of death.
- Social and Personal Fulfillment: Beyond financial considerations, many seniors find deep satisfaction and purpose in their careers. Work provides social engagement and a routine that helps combat boredom and loneliness often associated with retirement. For some, it's a chance to mentor younger colleagues or pursue a long-held passion in a part-time capacity.
The Shift to Part-Time and Flexible Work
Older workers are increasingly taking advantage of flexible work arrangements. The traditional "retire and stop working" model is being replaced by phased retirements, bridge jobs, and freelance or self-employment opportunities. This shift allows for a better work-life balance and a smoother transition into full retirement.
| Feature | Full-Time Work for Over 65s | Part-Time Work for Over 65s |
|---|---|---|
| Schedule | Rigid, standard hours (35+ per week) | Flexible, reduced hours (1-34 per week) |
| Income | Primary and consistent income source | Supplementary income; may be less predictable |
| Benefits | Typically includes comprehensive employer benefits (health insurance, 401(k) match) | Less likely to receive extensive employer benefits |
| Work-Life Balance | Can be more demanding and stressful | Provides more free time for personal interests and family |
| Physical/Mental Load | Higher potential for stress and fatigue | Lower stress, provides cognitive and social engagement |
Challenges for Older Workers
Despite the benefits, working later in life is not without its challenges. One of the most significant barriers is age discrimination, with many older workers reporting unfair treatment and limited opportunities for training and advancement. There can also be health considerations, including managing chronic conditions and the physical demands of certain jobs. Furthermore, navigating the complexities of Social Security and Medicare while earning a paycheck can be complicated, potentially leading to higher taxes or reduced benefits if not managed correctly.
Conclusion
The increasing percentage of people over 65 who are still working reflects a complex mix of economic, social, and personal motivations. Whether by choice or necessity, the trend is reshaping the workforce, with older adults seeking financial security, personal fulfillment, and greater flexibility. While challenges like ageism and health concerns persist, the growing population of older workers offers a valuable resource of experience and wisdom. As demographics continue to shift, employers and policymakers must adapt to create inclusive and supportive work environments that acknowledge the contributions and needs of this vital segment of the labor force.
Sources
- LendingTree: 22% of Retirement-Age Americans Are Still Working | LendingTree, June 3, 2024.
- Bureau of Labor Statistics: Golden years: older Americans at work and play, May 29, 2025.
- WebMD: Working After Retirement, February 29, 2024.
- Citizens Bank: Working in Retirement: Benefits to Consider.
- Alliance America: Employment after 65: Challenges and opportunities for older adults.
