Reaching retirement age often brings uncertainty about finances and lifestyle. Yet a growing number of older Americans are choosing to keep working, either out of necessity or personal preference. Data shows that this trend has been gaining momentum for decades and is reshaping the labor market.
Workforce trends among older adults
According to the Labor Department, 19.5 percent of people age 65 and older participated in the labor force in 2024. This includes 23.4 percent of men and 16.2 percent of women. By comparison, in 1985 only 10.8 percent of seniors were still working. The Bureau of Labor Statistics projects that workers 65–74 and 75-plus will be the fastest growing workforce groups through 2026.
Why more seniors stay employed
Several factors explain the increase. Social Security reforms in 1983 raised the full retirement age and offered higher benefits for delaying retirement until 70. Rising health care costs and the decline of employer pensions have also kept people in the labor market longer.
Still, many view continued work as positive. Extra years on the job can boost retirement savings and provide social interaction, structure, and a sense of purpose. “It’s a combination of both needs and wants,” said Angela Antonelli of Georgetown University’s Center for Retirement Initiatives.
Different paths to retirement
Not everyone can or wants to work longer. Health issues, caregiving responsibilities, or simply a desire for leisure lead many to retire early, often around 62. For those who do continue, work is not always full-time. In 2024, 38.3 percent of older workers were part-time, more than twice the rate of workers aged 55–64. Many seniors also turn to self-employment, at twice the rate of younger adults.
A new model of retirement
The traditional three-legged stool of Social Security, investments, and pensions has eroded, making additional income more important. At the same time, remote work options and less physically demanding jobs allow older workers to remain active. For some, the job is about financial security; for others, it is about staying engaged and purposeful.
