Cashiers were working at a Walmart store in Miami, Florida in 2023. When Diane Wetherington began contemplating retirement, she faced a harsh reality. At 72 years old, she thought about spending her time crafting and caring for her grandchildren, and she even attempted full-time retirement. However, she soon realized that her Social Security checks, which were smaller due to taking time off to raise children, wouldn’t cover travel expenses, rising insurance costs, and basic needs. Consequently, the Central Florida resident now works part-time as a remote contracting agent in local government. While she occasionally misses out on activities with her retired friends, continuing to work has helped her financially and mentally stable.
Wetherington is part of a growing number of Americans who are choosing to stay in the workforce beyond the traditional retirement age of 65. This trend has been beneficial for the national labor market, especially after facing worker shortages and high quitting rates caused by the pandemic. Additionally, it has altered the financial prospects for those who continue to work, whether for personal satisfaction or financial necessity.
This shift in working patterns is expected to become more prevalent in 2025 when a larger number of Americans are predicted to reach the age of 65 compared to any previous year. According to a study by the Alliance for Lifetime Income, the late 2020s have been designated as the “Peak 65 zone.”
Data from the Bureau of Labor Statistics analyzed by CNBC shows that the number of employed Americans aged 65 and older increased by over 33% between 2015 and 2024. In comparison, the overall labor force for workers aged 16 and above grew by less than 9% during the same period. As a result, individuals aged 65 and older made up 7% of the total workforce in 2024, up from about 5.7% a decade earlier.
This significant growth in older workers has presented challenges for employers in various sectors to fill crucial workforce gaps. Jim Malatras, the strategy chief at FedCap, a nonprofit organization aiding in job training and placement, mentioned that leveraging this age group could help address critical labor shortages.
While the increasing number of older workers – surpassing 11 million in 2024 – has been a recent focus, the reasons for this trend trace back several decades. One primary driver is the aging population in the United States, as stated by Laura Quinby, an associate director at Boston College’s Center for Retirement Research. Additionally, changes in the retirement system, such as the shift from employer-sponsored pensions to 401(k)s and other defined-contribution plans in the private sector, have necessitated many workers to stay employed longer. Social Security reforms in the 1980s also raised the program’s “full retirement age” from 65 to 67, prompting many individuals to continue working.
As life expectancies increase, there have been calls for the retirement age to be raised even further, particularly amid uncertainties surrounding Social Security.
The idea of retiring at 65 has its roots in the Ottoman Empire, but today there are diverse reasons why people of retirement age choose to continue working in some capacity, according to Teresa Ghilarducci, director of The New School’s Retirement Equity Lab. While some retire, others keep working out of passion. However, Ghilarducci notes that about two-thirds of older workers continue working because they have to, often due to financial constraints. She describes this as the “tale of two retirements.”
Employers are increasingly recognizing the value of older workers and are offering incentives to retain their skills and experience. For example, Booking.com parent Booking Holdings provides 10 days of annual leave for “grandparent leave,” Wegmans has part-time job opportunities targeted at seniors, and Xanterra offers seasonal gigs through its Helping Hands program.
Despite these positive initiatives, ageism remains a challenge in the workforce, with older workers often undervalued. Advocates emphasize the need for businesses to create more age-inclusive environments and to eliminate biases in job descriptions and hiring practices. Heather Tinsley-Fix from AARP suggests that employers consider removing college degree requirements and offering flexible work options to attract and retain older workers.
With a wave of retirements expected in the coming years, Tinsley-Fix urges businesses to tap into the skills and knowledge of older workers to fill the gaps in their workforce. She highlights the benefits of older workers’ soft skills and ability to mentor younger colleagues. Ultimately, creating a more age-inclusive workplace can lead to a more diverse and successful workforce.
“Older workers bring significant benefits to teams in the form of dividends,” stated Tinsley-Fix. “They truly gain from having experienced individuals on board.”
Those who continue to work do so for various reasons. Several workers in this age group shared with CNBC that, regardless of their initial motivations for staying or returning to the workforce — whether financial needs or personal preference — they have experienced physical and mental benefits.
Shari Nelson, who started working for nonprofit Vantage Aging through a government-assisted job placement program and was later hired to stay on, expressed, “It was the best thing that ever happened to me.” Working part-time in Ohio now, Nelson values the financial stability her paycheck provides, enabling her to be the kind of grandmother her family has always been. Her role was shifted from full-time to two part-time positions to better suit older workers.
At the end of 2024, nonprofits were the top industry for workers in this age category, with more than one of every 12 workers in the sector, according to Gusto payroll data. The proportion of workers aged 65 and older has risen by over 50% among small businesses using Gusto since January 2019.
Government work is also popular, as evidenced by Florida resident Anne Sallee. After deciding that full retirement wasn’t for her, Sallee, a former public official with a background as a paralegal, now works as an economic development coordinator. While the transition back to in-person office work after a long absence was a surprise, she finds personal fulfillment in meeting deadlines, following a routine, and being passionate about her role.
Sallee values having tasks to accomplish and a purpose in her work life, expressing, “I never envisioned the ‘sit on the beach with your feet up and a cocktail’ kind of lifestyle.” She has allowed herself some freedoms that she may not have indulged in earlier in her career, such as avoiding overtime and taking a three-week vacation annually, prioritizing her well-being.
