Retirement used to mean stepping away from work for good. But that picture has changed dramatically and a new Pew Research Center study shows just how much.
As of 2023, nearly one in five adults ages 65 and older were still working. That is double the share who were on the job 35 years ago.
The Pay Gap Is Shrinking
Older workers have always earned less than their younger counterparts, but the gap is closing fast. Back in 1964, workers 65 and older brought home just 20 cents for every dollar earned by workers ages 25 to 64.
By 1987, that had improved to 56 cents on the dollar. Today, older workers earn 80 cents for every dollar a younger worker makes. That is a remarkable shift in a single generation.
More Full-Time Hours Than You Might Expect
Part of what is driving that higher pay is a big jump in full-time work. In 2023, 62 percent of workers 65 and older held full-time jobs. That is actually higher than the 56 percent who worked full-time back in 1964.
On average, older workers are now putting in about 1,573 hours a year, up from 1,213 hours in 1987. That is a meaningful increase, and it shows up in the paycheck.
Today’s Older Workers Are Highly Educated
Here is something that might surprise you. Forty-four percent of older workers today hold at least a bachelor’s degree. In 1987, only 18 percent did.
That puts seniors almost exactly even with younger workers ages 25 to 64, of whom 45 percent hold a four-year degree. The U.S. Bureau of Labor Statistics links higher education directly to higher wages and longer employment.
Benefits Are Part of the Equation Too
Access to workplace benefits is also keeping many seniors on the job. In 2023, 36 percent of workers 65 and older had access to an employer- or union-sponsored retirement plan. That is up from 33 percent in 1987.
Interestingly, access to those same plans has been declining among younger workers, from 55 percent in 1987 to just 41 percent in 2023. Older workers are actually in a stronger benefits position than they used to be, relative to their younger colleagues.
There is also the Social Security factor. The age for full retirement benefits has been raised from 65 to between 66 and 67, depending on your birth year. That shift gives more people a financial reason to stay in the workforce a little longer.
What Kinds of Jobs Are Seniors Choosing?
Many older workers are not just staying in their old roles; they are making smart pivots. The Pew study notes that some seniors are shifting toward less physically demanding jobs that offer flexible scheduling.
Fields like insurance sales, proofreading, and financial management are among those attracting older workers who want to keep earning without the physical toll of earlier careers.
The Trend Is Only Going to Grow
According to projections from the U.S. Bureau of Labor Statistics, older workers will make up 8.6 percent of the entire labor force by 2032, up from 6.6 percent in 2022. Adults ages 55 to 64 are also expected to increase their participation over that same period.
The picture that emerges from all this data is straightforward: seniors are not fading out of the workforce. They are working smarter, earning more, and bringing decades of experience that younger workers simply cannot match.