More Americans 65 and Older Are Working, Driven by Rising Costs

Older Americans are staying in the labor force at the highest level in decades because fixed incomes are not keeping pace with everyday bills. In 2024, 19.5% of people age 65 and older were working or looking for work, up from 10.8% in 1985, the low point in the U.S. Bureau of Labor Statistics series. The older population has also expanded sharply, from 10.7 million in 1948 to 59.7 million in 2024, and the ranks of older workers have grown with it.

The trend is not just about longevity or staying active. AARP found in winter 2025 that 41% of adults 50 and older who were working or job-hunting said everyday living costs were their main reason for doing so. Among older respondents who expected trouble finding a job, 35% blamed age discrimination. The data point to a labor market where many older Americans are trying to bridge the gap between expenses and income, not simply extend their careers by choice.

A separate CBS News report on April 8, 2026, said Americans now expect to work about four years longer than they would like, with nearly half of respondents in the Economist Enterprise study citing living costs as the main reason. That squeeze matters for retirement timing, because many people are delaying Social Security claims in hopes of larger future checks, even as health and household expenses continue to climb. Social Security beneficiaries are set to receive a 2.8% cost-of-living adjustment in 2026, adding about $56 a month to the average retirement benefit starting in January, but that increase is likely to be swallowed quickly by other costs.

Health care is a major part of the problem. The Centers for Medicare & Medicaid Services said the 2026 Medicare Part A inpatient hospital deductible will be $1,736, a reminder that retirement income is still exposed to large out-of-pocket bills. AARP says older Americans remain worried about the future of Social Security and Medicare and want Congress to protect both programs, concerns that are likely to shape retirement decisions well beyond this year.

The labor data also suggest how employers may have to adapt. With 38.3% of employed people 65 and older working part time in 2024, flexible schedules and reduced-hour roles are becoming more important for companies that want to keep experienced workers. For younger workers, the message is harder to ignore: retirement is still the goal, but for a growing share of Americans, it is arriving later, leaner and under more financial pressure than expected.