In recent years, the average retirement age in the United States has been steadily increasing. More Americans are working past the traditional retirement milestone of 65, and many are choosing—or feeling forced—to extend their careers well into their late 60s and beyond. But why is this happening? The answer is a mix of economic realities, changing government policies, and evolving social attitudes toward work and retirement.
Financial Necessity Is Driving Many to Work Longer
A major reason more Americans are working longer is simple: money. Many people nearing retirement find their savings insufficient to cover the rising costs of daily living and healthcare. According to the U.S. Bureau of Labor Statistics, over 11 million Americans aged 65 and older were either working or looking for work in 2024. For many, Social Security benefits alone are not enough to maintain their desired lifestyle.
The Social Security Administration (SSA) reports that the average monthly benefit in 2024 is around $1,800, which can fall short for many retirees facing high costs in housing, medications, and other essentials. Coupled with inflation and unexpected expenses, these financial pressures lead many to delay retirement.
Changes in Social Security and Pension Policies
Social Security full retirement age has gradually increased over the decades. For those born after 1960, the full retirement age is now 67. Retiring early results in reduced monthly benefits, motivating many to keep working to maximize their future payouts.
At the same time, the traditional defined-benefit pension plans have largely been replaced by defined-contribution plans like 401(k)s. These shift the retirement saving responsibility from employers to individuals, creating uncertainty and often inadequate savings. Many workers feel the need to stay employed longer to build enough retirement funds.
For official information on retirement age and benefits, visit ssa.gov.
Longer Life Expectancy Means Longer Working Years
People are living longer and healthier lives thanks to advances in medicine and lifestyle improvements. With the average life expectancy in the U.S. now over 77 years, retirees need more money to fund potentially 20 or more years of retirement.
Because people expect to live longer, many feel they must work longer to ensure financial security throughout retirement. This demographic shift means that staying employed into the late 60s and early 70s is becoming more common.
Work Provides Purpose, Social Connection, and Mental Health Benefits
Beyond financial reasons, many older Americans continue working for social and psychological benefits. Work offers a sense of purpose and keeps people connected to their communities. For some, the workplace provides meaningful daily interactions and a structure that combats feelings of loneliness or isolation.
Articles on this aspect highlight how many seniors view work as a source of fulfillment, not just income.
Job Flexibility and Educational Attainment Help Extend Careers
Today’s older workers are often more educated and hold jobs that allow greater flexibility, making it easier to continue working. Remote work, part-time positions, and freelance opportunities offer older employees the chance to stay engaged without the strain of traditional full-time schedules.
A 2023 Pew Research Center study found that older workers are increasingly earning higher wages and taking advantage of flexible work options, which supports their decision to stay in the workforce longer.
Economic Uncertainty and Market Volatility Push People to Delay Retirement
Recent economic challenges, including the 2008 financial crisis and the COVID-19 pandemic, have had lasting impacts on retirement savings. Market downturns reduced the value of many retirement accounts, and inflation has driven up living costs.
These factors force many to reassess their retirement timeline and continue working to rebuild savings and maintain financial stability.
Employers Adapt to Retain Older Workers
Many employers recognize the value of experienced employees and have started offering accommodations such as part-time work, flexible hours, and remote work options. This shift benefits both employers and employees, allowing older workers to stay active while balancing health and personal needs.
What This Means for America’s Workforce and Retirement Planning
As the average retirement age rises, the U.S. workforce is aging. This trend presents challenges for both individuals and policymakers. Financial planning is more critical than ever, and understanding Social Security rules and retirement savings options can help Americans make informed decisions.
If you’re nearing retirement or planning ahead, the official U.S. Department of Labor’s retirement resources offer valuable guidance.
Conclusion
Whether it’s financial need, personal fulfillment, or a combination of both, more Americans are working longer than previous generations. This shift reflects deeper changes in economics, healthcare, government policies, and social attitudes toward aging and work.
Preparing for a longer working life means careful planning and staying informed about changing retirement rules. For many, working until 70 or beyond is no longer unusual—it’s becoming the new normal.