Why More Seniors are Working Past Retirement Age

More Americans are choosing to work past normal retirement age. As of 2023, nearly 1 in 5 adults ages 65 and older were employed, which is double the amount of those who were working 35 years ago, according to a Pew Research Center study that focused on wage trends and labor patterns among older workers.

Not only are they choosing to work longer, but they’re also working longer hours, earning more and are better educated than their counterparts of the past.

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Older Workers Earn Higher Pay Than in the Past

Older workers’ wages have increased over time, even though they still lag behind those of younger workers. For example, in 1964, the average annual earnings of workers 65 and older were about 20% of the average earnings of younger workers ages 25-64. In 1987, average yearly earnings for older workers were 56% of what younger workers earned. In 2023, older workers’ average annual earnings reached 80% of younger workers’ earnings.

Mean Annual Earnings by Age Group (2022 Dollars)
Year	Ages 25-64	Ages 65+	Older Workers’ Wages as a % of Younger
1964	$26,900	$5,200	19%
1987	$49,900	$27,600	56%
2023	$73,700	$58,600	80%

More Older Adults Are Working Full Time

A big reason older adults’ earnings have grown is that more of them are working full time. They’re working an average of 1,573 hours a year, up from 1,213 hours in 1987.

In 1964, over half (56%) of older workers held full-time jobs, and by 1987, that share had fallen to 47%. However, in 2023, 62% of workers ages 65 and older were working full time.

Many Older Workers Are Better Educated Than in the Past

According to the study, today’s older workers are just as likely as younger ones to have a four-year college degree. For example, 44% of older workers now have at least a bachelor’s degree, compared to 18% in 1987. This puts them almost neck and neck with 45% of workers ages 25-64 who hold a bachelor’s degree.

Higher education is linked to higher wages and continued employment, according to data from the U.S. Bureau of Labor Statistics.

Access to Benefits May Be Keeping Seniors in the Workplace

Workers 65 and older are also more likely than their much older predecessors to have access to benefits like pension plans and health insurance, which could influence them to remain in the workplace. For example, in 2023, 36% of older workers had access to an employer- or union-sponsored retirement plan, which marked an increase from the 33% that had the option in 1987. In contrast, access to these types of retirement plans for younger workers is decreasing — in 2023, 41% had access compared to 55% in 1987.

Additionally, the Social Security Administration raised the eligible age for full retirement benefits from 65 to between 66 and 67, depending on one’s birth year, which could also be a factor for older adults remaining in the workplace.

Older Adults Are Working More and Earning More

Per the study, projections from the U.S. Bureau of Labor Statistics indicate that older workers in the labor force will continue to grow — from 6.6% in 2022 to 8.6% in 2032 — and represent 57% of the workforce over this time. Adults 55-64 are also expected to increase their participation. Additionally, some of these older adults are taking on different jobs than they held previously, preferring jobs that are less physically demanding and offer flexible scheduling, such as those in insurance sales, proofreading or financial management, which can make it easier to keep working.

The bottom line: Older workers aren’t winding down; they’re evolving and taking more home because of it.

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