The Growing Trend of Working Past 65
For many years, 65 was considered the standard age for retirement. However, recent data from the U.S. Bureau of Labor Statistics (BLS) and Pew Research Center shows that a growing number of adults are choosing or needing to remain in the workforce past this traditional milestone. In 2024, around 19.5% of people aged 65 and older were part of the labor force, meaning they were either employed or actively looking for work. Projections suggest this figure will continue to rise in the coming years, with the BLS forecasting a labor force participation rate of 21% for older adults by 2032.
This demographic shift reflects longer life expectancies, improved health among older populations, and a move away from physically demanding jobs toward less strenuous, service-based work. The composition of this older workforce is also changing, becoming more diverse and highly educated than in previous generations.
Why More Seniors Are Choosing to Stay Employed
Financial Motivations
One of the most significant factors driving older adults to continue working is financial necessity. Many have been impacted by economic downturns, like the Great Recession, and find that their retirement savings are insufficient to support their desired lifestyle.
- Inadequate Savings: A significant portion of the population lacks sufficient retirement savings to live comfortably without a regular paycheck. This is partly due to the decline of traditional pensions and a greater reliance on 401(k) plans, which place the burden of saving on the individual.
- Higher Cost of Living: Rising inflation and increased healthcare costs put additional pressure on seniors' finances, making a continued income stream essential for covering expenses.
- Maximizing Social Security: Working longer allows many to delay claiming Social Security benefits, which results in a larger monthly payment later on.
Non-Financial Incentives
While money is a major driver, many seniors work for reasons beyond just a paycheck. Work provides a sense of purpose, a regular routine, and a source of mental and social engagement that can be missing in retirement.
- Enjoyment and Engagement: A large number of seniors report that they continue working simply because they enjoy their jobs and want to stay active and involved in a meaningful way.
- Social Connection: The workplace provides a vital social network, and remaining employed can help combat the loneliness and isolation that can sometimes accompany retirement.
- Mental and Physical Health: Research suggests that staying mentally and physically active through work can contribute to better overall health and wellbeing in older age.
The Shift to Part-Time and Gig Work
The nature of work for older adults is evolving. Many are not staying in demanding full-time roles but are transitioning to less intense arrangements, including part-time work, consulting, and participation in the gig economy. This flexibility allows them to earn an income while also enjoying more leisure time. For example, in 2024, nearly 40% of employed people aged 65 and older worked part-time, compared to just over 11% of workers aged 25 to 54.
Comparison: Working Patterns by Age Group (2024)
| Age Group | Labor Force Participation Rate | Part-Time Work Among Employed | Full-Time Work Among Employed |
|---|---|---|---|
| 16 to 24 | 55.9% | 42.3% | 57.7% |
| 25 to 54 | 83.6% | 11.1% | 88.9% |
| 55 to 64 | 65.9% | 14.2% | 85.8% |
| 65 and older | 19.5% | 38.3% | 61.7% |
Data based on U.S. Bureau of Labor Statistics 2024 annual averages.
The Impact on Social Security and Medicare
Continuing to work past 65 has important financial implications regarding federal benefits like Social Security and Medicare. For those who choose to work while receiving Social Security benefits before their full retirement age (which is 67 for most people today), there is an annual earnings limit. Exceeding this limit can result in a temporary reduction of benefits. However, once a person reaches their full retirement age, the earnings limit is eliminated, and they can earn an unlimited income without affecting their Social Security payments.
Furthermore, Medicare premiums can be affected by income levels. Those who earn a higher income may be required to pay a higher premium for Medicare Part B and Part D through the Income-Related Monthly Adjustment Amount (IRMAA). It's crucial for working seniors to understand these rules to make informed financial decisions.
What the Future Holds
The trend of older adults remaining in the workforce is expected to continue. With increasing life expectancies and evolving retirement savings landscapes, working longer is becoming a common and often necessary reality for many. For some, it offers a path to financial security; for others, it's an opportunity to stay active, engaged, and purposeful. For employers, the aging workforce presents a valuable resource of experienced, reliable, and knowledgeable talent. As the workforce ages, companies and policymakers will need to adapt to support this demographic, offering flexible work arrangements and comprehensive benefits that cater to the needs of older employees. You can read more about this trend and the changing landscape of retirement in publications like the Pew Research Center.
Note: The statistics presented are based on U.S. data. Workforce participation rates for those over 65 can vary significantly by country due to differences in social security systems, economic conditions, and cultural norms.
Conclusion
In summary, the percentage of people working after 65 has been steadily increasing, with roughly one in five older Americans participating in the labor force as of 2024. This is not a uniform decision; it is a complex trend shaped by a combination of financial needs, a desire for continued engagement and purpose, and greater longevity. The aging workforce is reshaping how we view retirement, making later-life employment a significant part of the healthy aging and senior care landscape. Understanding these statistics and the underlying motivations is essential for anyone interested in future workforce trends, retirement planning, or the well-being of older adults.
