Amidst a changing landscape of retirement norms, Americans are increasingly choosing to remain in the workforce well beyond the traditional age of 65. This shift has not only been motivated by personal satisfaction but also by pressing financial needs in the face of rising costs and uncertain social security benefits.
Diane Wetherington, a 72-year-old Central Florida resident, exemplifies this trend. After grappling with the reality of a shrinking social security check due to time spent raising children, Wetherington decided to continue working part-time as a remote contracting agent in local government. While she occasionally misses out on leisure time with fully retired friends, the financial security and mental stimulation of work have proven invaluable to her. “It’s just getting very hard to make ends meet,” she remarked, echoing the sentiments of many retirees navigating the complexities of an increasingly expensive world.
A Growing Trend in the Workforce
The number of employed Americans aged 65 and older has surged by over 33% from 2015 to 2024, outpacing the growth rate of the overall workforce. This demographic now accounts for 7% of the total workforce, a significant increase from a decade ago. The Alliance for Lifetime Income projects that 2025 will witness a record number of Americans turning 65, marking a pivotal shift in the labor market landscape.
Jim Malatras, the strategy chief at FedCap, highlights the essential role played by this older workforce in filling critical shortages across various industries. “It’s really hard for many employers in many sectors to fill key workforce needs right now,” he noted. Leveraging the skills and experience of retirees has emerged as a crucial strategy for addressing gaps in the labor market.
Navigating Retirement Realities
Laura Quinby, an associate director at Boston College’s Center for Retirement Research, points to both demographic shifts and changes in retirement systems as drivers behind the trend of working later in life. The shift from employer-funded pensions to defined-contribution plans coupled with adjustments in the social security retirement age have significantly impacted retirement decisions.
Teresa Ghilarducci, the director of The New School’s Retirement Equity Lab, emphasizes the diverse motivations that underpin continued workforce participation among retirees. While some individuals choose to work out of passion, many others are compelled by financial necessity. Ghilarducci characterizes this dynamic as a “tale of two retirements,” where external circumstances often dictate the decision to stay employed.
Challenges and Opportunities in the Workforce
Despite the potential benefits of retaining older workers, ageism remains a prevalent issue in the labor market. Employers are encouraged to examine their recruiting practices and job descriptions to ensure inclusivity for older applicants. Organizations like AARP offer resources and guidance to promote age equality in the workplace, emphasizing the value that older workers bring to teams.
Heather Tinsley-Fix, a senior advisor at AARP, underscores the impending “tsunami” of retirements expected in the coming years and the need for businesses to tap into overlooked talent pools. By fostering a more age-friendly environment and offering flexible work arrangements, employers can attract and retain experienced workers who possess invaluable soft skills and mentorship capabilities.
Real-life Stories of Retirees in the Workforce
Shari Nelson, an Ohio resident working part-time for nonprofit Vantage Aging, embodies the positive impact of continued workforce participation. By providing financial stability and a sense of purpose, Nelson’s employment has enabled her to fulfill familial responsibilities and lead a fulfilling life. Similarly, Anne Sallee of Florida, a former public official turned economic development coordinator, finds personal fulfillment and routine in her work, highlighting the diverse paths that retirement-age workers may choose to pursue.
As the workforce landscape continues to evolve, the contributions of retirement-age Americans remain a vital component of economic sustainability and growth. Their resilience, experience, and dedication serve as a testament to the enduring value of seasoned professionals in a rapidly changing world.
