The American workforce is witnessing a significant shift as more retirement-age individuals continue to work. Between 2015 and 2024, the number of employed Americans aged 65 and older increased by more than 33%, a stark contrast to the less than 9% growth seen in the labor force for all workers aged 16 or older during the same period. By 2024, over 11 million Americans in this age bracket were working, highlighting a growing trend that is reshaping the employment landscape.
A notable phenomenon driving this change is the "Peak 65 zone," a period expected in the late 2020s when the number of workers aged 65 and older will reach its zenith. Nonprofits have emerged as the most popular industry for these senior workers, with more than one out of every twelve individuals in this sector by the end of 2024. Small businesses using Gusto have also reported a more than 50% increase in the share of workers aged 65 or older since January 2019. This demographic shift underscores how the older workforce has ballooned over the past decade, far outpacing overall market growth.
The reasons behind this trend are multifaceted. Many employers face challenges in filling key workforce needs due to a dearth of younger applicants. Older workers bring immense value to companies through their ability to interact well with customers and maintain composure under pressure. Companies like Xanterra have adapted by offering part-time or flexible work arrangements to accommodate these experienced workers.
"The retirement community, or that older workforce, is really an integral part of our overall workforce planning strategy" – Shannon Dierenbach
As companies anticipate a "tsunami" of retirements within the next decade, there is an urgency to tap into this older workforce to maintain full staffing levels. Beyond the organizational benefits, continuing to work offers physical and mental advantages for older adults. However, financial necessity often drives many senior workers to stay employed, rather than personal preference.
"It's just getting very hard to make ends meet, The way the world is right now, everything's going up, up, up" – Diane Wetherington
The decision to delay retirement can be traced back to changes in retirement policy. In the 1980s, Social Security reforms pushed the "full retirement age" from 65 to 67. With increasing life spans, there is a growing call to extend this age even further, reflecting a shift in societal expectations regarding work and retirement.
"a bit crazy" that the expectation of retiring at 65 "originates from the time of the Ottoman Empire" – Larry Fink
Beyond financial needs, some older individuals find fulfillment and purpose through continued employment. For instance, Anne Sallee relishes having responsibilities and tasks to keep her engaged.
"I don't enjoy not having things I have to do, I never envisioned the 'sit on the beach with your feet up and a cocktail' kind of lifestyle" – Anne Sallee
Nevertheless, not all experiences are purely positive. Some older workers feel undervalued despite their contributions.
"They're like vintage cars to us, They're built to last, they're full of value, but they're treated often like high-mileage Pintos, and they don't really have an opportunity to serve anymore." – Jim Malatras
Employers across various sectors acknowledge the challenges they face in meeting workforce demands without drawing from this pool of experienced workers.
"It's really hard for many employers in many sectors to fill key workforce needs right now" – Jim Malatras
For some, working beyond traditional retirement years has proven rewarding. Shari Nelson expressed that continuing her career was an enriching experience.
"It was the best thing that ever happened to me" – Shari Nelson
The trend of extended employment among older Americans is further fueled by both economic conditions and evolving attitudes toward work-life balance. As companies strive to harness this talent pool effectively, innovative strategies such as flexible hours and part-time roles become crucial in attracting and retaining older employees.