What retirement? Why more older Americans are still working full-time

The number of older workers in the labor market is growing — so much so that the share of Americans 65 and older who were employed in 2023 is nearly double what it was 35 years ago.

About 19% of Americans in this age group were working this year compared to just 11% in 1987, according to a new study from Pew Research Center. What’s more, researchers found that the majority (62%) of those older workers are working full time. Workers 65 and older are projected to account for most (57%) U.S. labor force growth over the next decade.

But the study’s findings aren’t as bleak as you might think: The earning power of older workers has also expanded in the past few decades, with the typical worker age 65 and up earning an average $22 per hour in 2022. That’s compared to $13 per hour in 1987. Younger workers’ wages haven’t grown at the same rate, and as a result, the earning disparity between younger workers (those aged 25 to 64) and older workers has shrunk significantly.

Some older adults have to continue working past retirement age because of financial need. But that’s not the only factor: Older adults are more healthy and able to work longer than in the past, and Pew says that many jobs have become more “age friendly” since 1990.

"We are also seeing that older workers are less likely to say they find their job stressful, reporting higher levels of job satisfaction overall compared to younger workers,” Richard Fry, a senior researcher with Pew, said in the report.

You can find out more about the study’s findings by reading Money reporter Brenden Rearick’s story.

— Mary Ellen Cagnassola, Money reporter

On average, Gen X workers between 43 and 58 say it will take $1,112,183 in savings to retire comfortably, according to a recently released survey from asset management firm Schroders. At the same time, this group only expects to have about $661,013 saved. Roughly 45% of Gen Xers say they haven’t even done any retirement planning, making them less prepared than millennials (43%) and non-retired Baby Boomers (30%).

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