Retirement was once seen as a time to relax, travel, and enjoy life after decades of hard work. But in the U.S., an increasing number of people over 65 are continuing to work instead of retiring. According to the U.S. Bureau of Labor Statistics, the number of workers aged 65 and older has surged by 33% since 2015, adding over 3 million senior workers to the labor force. So, what’s driving this trend?
The Growing Presence of Senior Workers
In 2024, older workers now make up 7% of the U.S. workforce, a rise from 5.7% a decade ago. This shift is reshaping the job market, as retirees continue to contribute to the economy. Experts believe that this trend has helped the labor market recover from pandemic-induced worker shortages and high quitting rates.
Financial Uncertainty and Longer Life Expectancy
One major reason for this increase is financial insecurity. With rising costs, many older Americans find that their savings and Social Security benefits are not enough to sustain their retirement. Additionally, longer life expectancy means that people need more money to support themselves for a longer period.
Even financial experts are questioning the traditional retirement age. BlackRock Chairman Larry Fink argues that retiring at 65 is outdated, saying that this expectation dates back to the time of the Ottoman Empire. As people live longer, some believe the retirement age should be pushed back.
Retirement Jobs: A New Trend
Many retirees are taking up jobs that allow them to remain active while earning extra income. Some are working in retail and travel, with companies like Xanterra offering part-time seasonal jobs in national parks. Others find jobs in nonprofits, which have become the most popular industry for workers over 65. Payroll platform Gusto reports that senior workers in small businesses have increased by 50% since 2019.
The Future of Retirement in America
With financial challenges and a changing job market, the concept of retirement is evolving. Many older Americans are working not just for survival, but also for mental and physical well-being. As this trend grows, will the U.S. rethink its retirement policies?
