Why more older Americans are staying in the workforce
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For many generations, retirement was seen as a clear finish line—age 65 meant saying goodbye to the daily grind and hello to leisure, hobbies, and family time.
But today, that vision is shifting.
More Americans are choosing—or needing—to work well into their 60s, 70s, and even 80s.
A new report from Asset Preservation Wealth & Tax reveals that over half of retirement-age adults now expect to keep working indefinitely.
So what’s behind this growing trend, and what does it mean for the future of retirement?
More seniors are still working
The number of Americans aged 65 and older in the workforce has jumped more than 33% since 2015, while the overall labor force grew by less than 9%.
It’s not just a small uptick—it’s a major shift.
And it’s not only people in their early 60s.
Many are working well into their 70s and beyond, whether for income, fulfillment, or both.
While the average retirement age remains around 62, more people are treating that number as flexible.
Also read: Why retirement savings feel harder than ever—and how Americans are adapting
Why the retirement dream is being redefined
Several key reasons are fueling the change.
First, people are living longer. Life expectancy in the US is now 78.4 years, which means more years to fund—and more time to stay active.
Second, pensions are disappearing. Many Americans now rely on 401(k)s or IRAs, which don’t guarantee income and require careful management.
The average balance for 65–74-year-olds is just over $100,000, but many retired homeowners spend around $70,000 annually.
That gap often means working longer.
Social Security incentives and economic pressure
The full retirement age for Social Security has shifted from 65 to 67 for most people, encouraging some to delay benefits for larger monthly payments.
Meanwhile, inflation, rising healthcare costs, and steep housing prices are pressuring seniors financially.
Nearly two-thirds of working seniors report needing income to cover essentials that savings and Social Security don’t fully support.
For many, a steady paycheck remains necessary.
Also read: Retirement dream derailed: How a senior housing promise left this 89-year-old with nearly nothing
It’s not just about money—work brings meaning
Not all older workers are driven by finances.
Some enjoy staying active, connected, and mentally sharp.
Work can offer structure, community, and purpose.
A 67-year-old today might be running a consulting business, working part-time at a library, or launching something entirely new.
Studies suggest that remaining engaged—whether through paid work, volunteering, or hobbies—can benefit mental and physical health.
Also read: Could your retirement be delayed? Find out if sweeping new age changes will impact you and 257 million Americans
Employers are adapting to older talent
Flexible work is helping older Americans stay in the game.
Employers are increasingly offering part-time schedules, remote work options, and custom benefits to attract experienced professionals.
Older workers bring reliability, strong work ethics, and institutional knowledge—qualities that companies are learning to value more.
These changes are creating more welcoming environments for those who want to stay employed on their terms.
Also read: Thinking of working in retirement? Here’s where seniors are thriving
But not everyone has a choice
It’s important to recognize that many older adults aren’t working by choice.
Roughly half say financial need is the main reason.
Only 34% feel ready to retire, while nearly one-third say they’re not prepared at all.
And while an older workforce can ease shortages in certain industries, it may also complicate promotion opportunities for younger workers.
The system is still adjusting to this new reality.
Also read: Think Social Security is enough for retirement? Here are 3 important reasons to think again
Looking ahead: A different kind of retirement
The idea of retirement is becoming more flexible and personal.
Lawmakers are exploring reforms to Social Security, while businesses look at how to better support older workers.
Expect to see more focus on lifelong learning, skills training, and phased retirement options.
As Waterlily CEO Lily Vittayarukskul puts it, “Retirement is shifting from a hard stop to more of a glide path.”
Whether you’re working by choice, necessity, or a bit of both, it’s clear that retirement in America is no longer a one-size-fits-all journey.
As financial realities shift and attitudes toward aging evolve, more people are finding meaningful ways to stay active and engaged.
Whatever path you’re on, there’s value in creating a retirement that works for you.
Read next: Unlock hidden benefits! Discover the retirement perks your bank doesn’t advertise
Are you still working—or planning to? Whether for income, purpose, or both, your experience matters. Share what’s working, what’s challenging, and how you’re navigating this next chapter.
Retirement may look different than it used to, but it’s still a story worth writing your own way!
But today, that vision is shifting.
More Americans are choosing—or needing—to work well into their 60s, 70s, and even 80s.
A new report from Asset Preservation Wealth & Tax reveals that over half of retirement-age adults now expect to keep working indefinitely.
So what’s behind this growing trend, and what does it mean for the future of retirement?
More Americans over 65 are staying in the workforce—by choice or necessity—as the traditional retirement model evolves. Image Source: Pexels / RDNE Stock project.
More seniors are still working
The number of Americans aged 65 and older in the workforce has jumped more than 33% since 2015, while the overall labor force grew by less than 9%.
It’s not just a small uptick—it’s a major shift.
And it’s not only people in their early 60s.
Many are working well into their 70s and beyond, whether for income, fulfillment, or both.
While the average retirement age remains around 62, more people are treating that number as flexible.
Also read: Why retirement savings feel harder than ever—and how Americans are adapting
Why the retirement dream is being redefined
Several key reasons are fueling the change.
First, people are living longer. Life expectancy in the US is now 78.4 years, which means more years to fund—and more time to stay active.
Second, pensions are disappearing. Many Americans now rely on 401(k)s or IRAs, which don’t guarantee income and require careful management.
The average balance for 65–74-year-olds is just over $100,000, but many retired homeowners spend around $70,000 annually.
That gap often means working longer.
Social Security incentives and economic pressure
The full retirement age for Social Security has shifted from 65 to 67 for most people, encouraging some to delay benefits for larger monthly payments.
Meanwhile, inflation, rising healthcare costs, and steep housing prices are pressuring seniors financially.
Nearly two-thirds of working seniors report needing income to cover essentials that savings and Social Security don’t fully support.
For many, a steady paycheck remains necessary.
Also read: Retirement dream derailed: How a senior housing promise left this 89-year-old with nearly nothing
It’s not just about money—work brings meaning
Not all older workers are driven by finances.
Some enjoy staying active, connected, and mentally sharp.
Work can offer structure, community, and purpose.
A 67-year-old today might be running a consulting business, working part-time at a library, or launching something entirely new.
Studies suggest that remaining engaged—whether through paid work, volunteering, or hobbies—can benefit mental and physical health.
For many older adults, work offers more than a paycheck—it provides purpose, connection, and a sense of daily fulfillment. Image Source: Pexels / Greta Hoffman.
Also read: Could your retirement be delayed? Find out if sweeping new age changes will impact you and 257 million Americans
Employers are adapting to older talent
Flexible work is helping older Americans stay in the game.
Employers are increasingly offering part-time schedules, remote work options, and custom benefits to attract experienced professionals.
Older workers bring reliability, strong work ethics, and institutional knowledge—qualities that companies are learning to value more.
These changes are creating more welcoming environments for those who want to stay employed on their terms.
Also read: Thinking of working in retirement? Here’s where seniors are thriving
But not everyone has a choice
It’s important to recognize that many older adults aren’t working by choice.
Roughly half say financial need is the main reason.
Only 34% feel ready to retire, while nearly one-third say they’re not prepared at all.
And while an older workforce can ease shortages in certain industries, it may also complicate promotion opportunities for younger workers.
The system is still adjusting to this new reality.
Also read: Think Social Security is enough for retirement? Here are 3 important reasons to think again
Looking ahead: A different kind of retirement
The idea of retirement is becoming more flexible and personal.
Lawmakers are exploring reforms to Social Security, while businesses look at how to better support older workers.
Expect to see more focus on lifelong learning, skills training, and phased retirement options.
As Waterlily CEO Lily Vittayarukskul puts it, “Retirement is shifting from a hard stop to more of a glide path.”
Whether you’re working by choice, necessity, or a bit of both, it’s clear that retirement in America is no longer a one-size-fits-all journey.
As financial realities shift and attitudes toward aging evolve, more people are finding meaningful ways to stay active and engaged.
Whatever path you’re on, there’s value in creating a retirement that works for you.
Read next: Unlock hidden benefits! Discover the retirement perks your bank doesn’t advertise
Are you still working—or planning to? Whether for income, purpose, or both, your experience matters. Share what’s working, what’s challenging, and how you’re navigating this next chapter.
Retirement may look different than it used to, but it’s still a story worth writing your own way!
