Older Americans are Choosing Work Over Retirement

Instead of retiring, an increasing number of American’s are working — either reentering the workforce or pressing onward with their professional careers. Recent research published by the Pew Research Center analyzed the growing presence and influence of older employees, and found that in 2023, about one in five Americans aged 65 and older were employed, which is nearly double the number from 35 years ago.  

The increase in older workers is being attributed to several factors, including longer lifespans and changes in retirement planning — such as the decline of corporate pension plans. According to an analysis of the data published by the National Association of Plan Advisors (NAPA), older workers today are not only more numerous but also more educated, with 44% holding a bachelor’s degree or higher, compared to just 18% in 1987. Additionally, they are working more hours, with 62% reported to be engaged in full-time work. 

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This demographic shift is impacting the dynamics of the workforce. According to NAPA, older employees are narrowing the wage gap with younger workers, and their contributions are increasingly significant. In 2023, they accounted for 7% of all wages and salaries in the U.S., a substantial increase from 2% in 1987. 

The growing presence of older workers also reflects changes in employment benefits. While younger workers are reported to have seen a decrease in access to employer-provided benefits like pension plans and health insurance, older workers have slightly better access. This disparity suggests the evolving nature of work benefits and the need for policies that can address the needs of all age groups. 

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Older workers are also more likely to be self-employed when compared to younger workers, a trend that coincides with the shift towards more flexible, autonomous work arrangements. This might reflect the broader growth of the gig economy and freelance work — which can offer workers opportunities to leverage their experience while maintaining greater work-life flexibility. 

As multigenerational work environments become more common across the workforce, it may lead businesses leaders and policymakers to explore new policies. This could include more age-inclusive benefits and offering flexible working conditions and continuous learning opportunities.

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