For some in the U.S., retirement doesn’t start at age 65. Twenty-two percent of Americans 65 and older are still in the workforce, according to a LendingTree analysis of U.S. Census Bureau data. Some states are seeing more of this than others.
“Significant growth in the 65-and-older population, changes in Social Security policies and a higher cost of living have led to a large share of older adults in the workforce,” LendingTree explained. “Other factors, such as improved health, higher education levels and a flexible job landscape have also kept older Americans working.”
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There could be another factor at play, according to the online lending platform. The data shows a dip in employment among those 65-plus between 2022 and 2024, which could be related to employment trends during the pandemic. Many older Americans opted for retirement during the Great Resignation.
But now, whether because of inflation or simply the fact they weren’t ready to retire, many older Americans have decided to delay retirement or return to the workforce. However, that’s not necessarily the case across the country. Some states are seeing a jump in the portion of retirement-age adults continuing to work, while other states are experiencing the opposite.
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States leading the work-in-retirement trend
The LendingTree analysis showed a significant increase in the share of retirement-age adults in the workforce among several states, with New Jersey leading the way at 33.8% in March 2024, compared to 20.3% in March 2022. That’s a significant jump of 66.5% over a two-year period.
New Jersey’s neighbor, Delaware, came in second, with a 27.2% share of retirement-age adults still working, compared to 19.8% two years prior (a 37.4% increase).
Indiana came in third, with a 23.0% share in 2024, compared to 17.4% two years prior (a 32.2% increase).
States bucking the trend
Other states, according to the analysis, are trending in the opposite direction. Iowa saw the biggest decrease in the share of working retirement-age Americans at 17.2%, compared to 27.1% in 2022, a change of -36.5% over two years.
West Virginia also experienced a significant decrease, with 15.7% of its retirement-age adults working in 2024, as opposed to 23.9% two years ago, a change of -34.3%.
Kansas is next on the list, with 18.6% of its 65-plus population still in the workforce, compared to 28.2% in 2022, a change of 34%.
One thing to keep in mind, while motivation to work is often financially driven, these figures don’t take into account changes in population demographics.
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Why Americans 65-plus are still working
The 65-plus workforce has nearly quadrupled since the mid-1980s, according to research from the Pew Research Center — and workers aged 75-plus are the fastest-growing age group in the workforce, with about 9% employed.
One reason could be policy changes to Social Security, which raised the full retirement age from 65 up to 67 (depending on the year you were born). Those who want their full benefit may now decide to delay retirement. Along with inflation and a higher cost of living, some retirees may also find themselves in need of extra income to stretch their retirement savings.
Older Americans also tend to be healthier and have higher education levels than in the past, according to the Pew Research Center. That makes it easier to extend their working years. For example, some may work part-time at a job that brings them joy, or they might find a “bridge” job because they’re not ready to fully commit to retirement.
These days, there are also more opportunities for flexible or part-time work arrangements. The LendingTree analysis found that 24.2% of workers 65-plus are self-employed, compared to 8.1% of workers aged 25 to 39 and 11.7% of workers aged 40 to 54.
Whether you choose to retire early or keep working past 65, you can plan to live your best life in your golden years by coming up with a retirement budget (which should include potential medical expenses) and reducing or eliminating your debt before retiring.
But a retirement plan should also consider other goals and pursuits that will provide a sense of fulfillment and purpose — and for some, that might mean staying in the workforce.
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