Older Americans are delaying retirement—why working after 65 is quickly becoming the new normal
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Many Americans past the traditional retirement age are deciding not to step away from work just yet.
Some continue out of financial necessity, while others find joy and purpose in staying active on the job.
The number of older adults in the labor force has been steadily growing for decades, and experts say this trend is far from over.
The reasons behind it stretch from Social Security rules to lifestyle choices.
The Bureau of Labor Statistics has noted that people ages 65 to 74, along with those 75 and older, are the fastest-growing groups in the workforce.
Labor Department data showed that in 2024, 19.5% of those 65 and older were still working. Men were more likely than women to remain employed, with 23.4% compared to 16.2%. This is a big jump from 1985, when only 10.8% of older Americans were in the workforce.
A turning point came with reforms made to Social Security back in 1983. Lawmakers raised the full retirement age from 65 to 67 and also increased the rewards for waiting until 70 to claim benefits.
This made it financially smarter for many to keep working longer. Rising health care costs and the decline of pensions also added to the motivation.
Angela Antonelli, executive director of the Center for Retirement Initiatives at Georgetown University, put it simply: “Is it a question of needs to work or wants to work? I think it’s a combination of both.” But despite the trend, many people still retire earlier, often around age 62.
Health concerns and caregiving responsibilities often push people out of the workforce sooner than planned. Others may dream of retiring the moment they can afford to.
Still, compared to decades ago, older adults now have more flexibility. With less physically demanding jobs and options like remote work, many can keep earning while balancing hobbies, family, or volunteering.
Joshua Smith, senior vice president at Adecco, explained that “While retirement decisions vary widely by individual, financial considerations or a sense of purpose are key factors for some who continue working beyond the traditional retirement age.”
For others, the benefits go beyond income—work provides community, routine, and intellectual stimulation. These added rewards are drawing more seniors to remain engaged in the workplace.
Also read: The 4% rule is outdated—experts say the 4.7% rule could help retirees stretch their paychecks further
The financial picture has also changed. Retirement used to rely on a three-legged stool of Social Security, personal investments, and company pensions.
Since pensions have become rare, extra income from working longer helps many cover rising expenses. This is especially useful during the early retirement years when people often splurge on travel or personal luxuries.
Not every older worker is tied to a traditional 40-hour week. In 2024, 38.3% of employed seniors over 65 worked part-time. Many also choose self-employment, with older adults being twice as likely to run their own businesses compared to younger workers.
Also read: Turning pastimes into paydays: 5 creative ways retirees are cashing in
For some, it’s a chance to scale back while still staying active. For others, it’s about following passions that they finally have the freedom to pursue.
The choice to keep working—or not—varies for every individual. What’s clear is that more people are finding reasons to extend their time in the workforce.
Whether it’s money, purpose, or simply the love of what they do, older Americans are reshaping what retirement looks like.
Read next: From retiring to rehiring: Seniors may lead new labor trend—Will you be part of it?
Some continue out of financial necessity, while others find joy and purpose in staying active on the job.
The number of older adults in the labor force has been steadily growing for decades, and experts say this trend is far from over.
The reasons behind it stretch from Social Security rules to lifestyle choices.
The Bureau of Labor Statistics has noted that people ages 65 to 74, along with those 75 and older, are the fastest-growing groups in the workforce.
Labor Department data showed that in 2024, 19.5% of those 65 and older were still working. Men were more likely than women to remain employed, with 23.4% compared to 16.2%. This is a big jump from 1985, when only 10.8% of older Americans were in the workforce.
A turning point came with reforms made to Social Security back in 1983. Lawmakers raised the full retirement age from 65 to 67 and also increased the rewards for waiting until 70 to claim benefits.
This made it financially smarter for many to keep working longer. Rising health care costs and the decline of pensions also added to the motivation.
For some, though, work is about more than money. Image source: bruce mars / Unsplash
Angela Antonelli, executive director of the Center for Retirement Initiatives at Georgetown University, put it simply: “Is it a question of needs to work or wants to work? I think it’s a combination of both.” But despite the trend, many people still retire earlier, often around age 62.
Health concerns and caregiving responsibilities often push people out of the workforce sooner than planned. Others may dream of retiring the moment they can afford to.
Still, compared to decades ago, older adults now have more flexibility. With less physically demanding jobs and options like remote work, many can keep earning while balancing hobbies, family, or volunteering.
Joshua Smith, senior vice president at Adecco, explained that “While retirement decisions vary widely by individual, financial considerations or a sense of purpose are key factors for some who continue working beyond the traditional retirement age.”
For others, the benefits go beyond income—work provides community, routine, and intellectual stimulation. These added rewards are drawing more seniors to remain engaged in the workplace.
Also read: The 4% rule is outdated—experts say the 4.7% rule could help retirees stretch their paychecks further
The financial picture has also changed. Retirement used to rely on a three-legged stool of Social Security, personal investments, and company pensions.
Since pensions have become rare, extra income from working longer helps many cover rising expenses. This is especially useful during the early retirement years when people often splurge on travel or personal luxuries.
Not every older worker is tied to a traditional 40-hour week. In 2024, 38.3% of employed seniors over 65 worked part-time. Many also choose self-employment, with older adults being twice as likely to run their own businesses compared to younger workers.
Also read: Turning pastimes into paydays: 5 creative ways retirees are cashing in
For some, it’s a chance to scale back while still staying active. For others, it’s about following passions that they finally have the freedom to pursue.
The choice to keep working—or not—varies for every individual. What’s clear is that more people are finding reasons to extend their time in the workforce.
Whether it’s money, purpose, or simply the love of what they do, older Americans are reshaping what retirement looks like.
Read next: From retiring to rehiring: Seniors may lead new labor trend—Will you be part of it?
