Fifty-one percent of retirement-age Americans now say they plan to work indefinitely, according to new findings from Asset Preservation Wealth & Tax. This isn’t just a minor uptick. It’s a fundamental shift in how Americans approach their later years.
The workforce transformation is dramatic. Between 2015 and 2024, the number of Americans 65 and older still punching the clock surged by more than 33%, CNBC reported. Meanwhile, the overall labor force grew by less than 9 percent.
When retirement math does not add up
Today’s 65- to 74-year-olds have an average 401(k) balance that’s barely six figures, yet the median retired homeowner shells out over $70,000 annually, according to Lily Vittayarukskul, CEO of long-term care predictor platform Waterlily.
“Pair that gap with a 20-plus-year retirement horizon and it’s no surprise that more than one in five people 65 and older are still in the labor force, up from roughly 12 percent 30 years ago,” Vittayarukskul told Newsweek.
Nearly half of survey respondents (48%) admitted they’re working past the traditional retirement age out of financial necessity. Healthcare costs bear much of the blame.
Finding purpose in later-life work
Financial pressure tells only part of the story. Roughly two-thirds of older workers need the income to cover essential costs, according to CNBC; but others pursue work for entirely different reasons, including mental stimulation, social connections, or simply because they enjoy what they do.
Today’s older workers bring different expectations to the table. “Today’s 67-year-old is often healthier, more educated and tech-savvy than the same cohort a generation ago, and many want purpose as much as a paycheck,” Vittayarukskul observed.
Employers have adapted accordingly. Flexible schedules, remote opportunities, and part-time arrangements make it easier for experienced workers to contribute without burning out. Companies facing labor shortages increasingly value the institutional knowledge and reliability these workers provide.
Ripple effects across the economy
This workforce shift creates consequences that extend far beyond individual retirement accounts. “A larger pool of experienced workers can ease labor shortages in health care, education and the skilled trades, supporting GDP growth even as the population ages,” Vittayarukskul noted. Additionally, delayed Social Security claims provide modest relief to the program’s strained finances.
However, when older workers extend their careers, promotion opportunities for younger employees may stall. “Delayed benefit claims modestly shore up Social Security’s finances, but they also postpone generational turnover inside companies, which could slow promotion paths for younger employees,” Vittayarukskul warned.
Policy discussions around Social Security reform, workplace protections for older employees, and retirement savings incentives will likely intensify as this trend continues. The sharp line between working years and retirement years is blurring into what Vittayarukskul describes as “more of a glide path” than a hard stop.
Planning for a longer working life
Retirement is changing. For many, it no longer means a complete exit from work but a shift into something more flexible or fulfilling. Whether you plan to work longer or want the option to stop, preparation is key.
- Rethink the timeline. Retirement no longer starts at a fixed age. Planning for part-time or phased work into your 60s and 70s can offer more stability than expecting a hard stop.
- Prioritize healthcare costs. Medical expenses are a major reason older adults keep working. Build a realistic healthcare budget that includes premiums, out-of-pocket costs, and potential long-term care expenses. If you have a high-deductible health plan, you should have a Health Savings Account. Check out Lively HSAs.
- Save intentionally. The more you save now, the more freedom you will have later. A solid financial cushion can make working later a choice, not a necessity. SoFi Checking pays a competitive APY on savings, plus a cash bonus for new members who set up direct deposit. (May change without notice.)
- Explore sustainable income options. Look into freelance work, consulting, or part-time roles that fit your skills and lifestyle. These can supplement savings without overwhelming you. FlexJobs lets you browse and apply to verified jobs around the corner and around the world.
- Find meaning, not just money. Work that offers flexibility and a sense of purpose can support both your finances and your well-being. One way of earning income with barely any effort is by taking surveys. This company's members collectively earn over $55,000 daily.
- Think about what you want. Just because working longer is more common does not mean it has to be your plan. Consider whether continuing to work fits your goals, values, and energy.
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Working longer can be a smart option. It should also be your decision. Planning ahead helps ensure that if you stay in the workforce, it is because you want to, not because you have to.
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