On average, men who reach 65 live another 19 years and women live another 21 years, according to the Social Security Administration. That means many Americans are living well into their 80s and 90s, extending the years when income is needed.
Bureau of Labor Statistics data indicate that 19.5% of Americans age 65 and older were in the labor force in 2024, up from 12.6% in 1994. Among those 75 and older, about 8 to 9% are working or looking for work, and BLS projects that figure will top 10% within the next few years. Pew Research also reported in late 2023 that 9% of adults 75 and older were employed.
These numbers show how retirement is changing in practice, influencing Social Security strategies, healthcare decisions and family finances.
1. Your motive for working longer
Older Americans working into their late 70s often fall into two groups: those who must and those who choose to.
Financial pressure is a powerful driver. Years of insufficient savings, rising housing and healthcare costs and adult children needing support longer than expected leave many without enough to retire comfortably.
For many, the motivation is simple: they like what they do. Some professionals are not ready to trade intellectual challenges and workplace connections for afternoon television and early dinners. Consulting, part-time schedules or passion projects help them stay engaged while continuing to earn.
The pandemic accelerated the trend by normalizing remote work, making it easier for older workers to remain active. Employers are also recognizing that experienced employees bring institutional knowledge and mentoring skills that younger hires cannot replicate.
2. Social Security strategies shift
Working beyond traditional retirement age changes the Social Security equation. Waiting to claim benefits beyond full retirement age raises monthly checks until age 70. Extra working years can also replace lower-earning years in the formula used to determine benefit amounts.
However, claiming benefits while still working before full retirement age can result in temporary benefit reductions if earnings exceed certain limits. For many, delaying benefits is the smarter move.
If you’ve got more than $100,000 in savings, get some advice from a pro. SmartAsset offers a free service that matches you to a vetted, fiduciary advisor in less than 5 minutes.
3. Healthcare choices change after 65
Working past 65 means deciding whether to enroll in Medicare Part B right away. If your employer has 20 or more workers and offers health insurance, that plan pays first. In this case, you can safely delay Part B without penalties, as long as you sign up once the job-based coverage ends.
With smaller employers, Medicare becomes the primary payer and the work plan pays second. Skipping Part B in that situation usually leads to lifetime penalties. The decision comes down to comparing your employer plan’s coverage and cost, and how long you expect to keep it, against what Medicare Part B would provide.
If you have a high-deductible health plan, you should have a Health Savings Account. Check out Lively HSAs.
4. Income and tax consequences
Earning a paycheck in your 70s can create unexpected tax consequences. Higher income may push more Social Security benefits into taxable territory. Required minimum distributions from retirement accounts, combined with wages, can nudge retirees into higher tax brackets.
Some states offer retirees tax breaks, while others treat retirement and work income equally. Choosing where to live can significantly impact the amount of income that remains after taxes.
5. Estate planning has new dimensions
A longer working life changes traditional estate planning. Children may be nearing their own retirements before receiving inheritances. Instead, lifetime gifts, funding education for grandchildren or helping with down payments may offer more timely support.
Charitable giving strategies also evolve when earnings extend further into later life. Planning for long-term care becomes more urgent, too, especially since many disability policies end at 65, leaving a gap in coverage.
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Planning your own path forward
Retirement today is less a cliff and more a slope. Continuing to work past 75 does not mean abandoning retirement dreams. It means adapting them.
- Build multiple income streams. Side consulting, part-time teaching or small business ventures can provide flexibility and resilience. FlexJobs lets you browse and apply to verified jobs around the corner and around the world.
- Keep skills sharp. Stay current with technology and industry trends to remain employable into your 70s.
- Invest in health now. Fitness and preventive care in your 50s and 60s create options later. Life Line Screening reveals hidden risks so you can act early. Book a screening today and have peace of mind.
- Maximize retirement savings. Take advantage of catch-up contributions in your 50s and 60s while still earning.
- Plan tax strategy carefully. Consider Roth conversions during lower-income years and evaluate state tax rules before relocating.
- Revisit estate and care plans. Update wills, explore long-term care insurance and think about giving strategies that benefit family now.
With foresight, working longer can be an opportunity to blend financial security with personal fulfillment. Older Americans are showing that retirement is being redefined in real time. The question is not whether work will play a role after 65, but how you will shape it to fit your life.
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