Rise of the silver workforce! Number of over 65s working has DOUBLED in the past 30 years, study shows - as one in five seniors now have a job
- Approximately 11 million Americans over the age of 65 are still in the labor force
- The so-called 'silver workforce' is also earning more than in past generations
- Are you over 65 and working? Get in touch with us at [email protected]
The number of Americans working into their twilight years has doubled in the past 30 years, as retirement has become an increasingly gradual process for many.
Almost one in five over 65s - approximately 11 million people - now work, according to a new report from the Pew Research Center. Some are working by choice but others must do so to make ends meet.
President Biden, who is aged 81, and 65-year-old Madonna demonstrate how the traditional path of retirement in your mid-60s is becoming increasingly outdated.
The so-called 'silver workforce' is earning more than in past generations - and working longer hours. While in 1987 over-65s typically earned $13 an hour, the average worker aged 65 or over made $22 per hour in 2022, the research found.
It is reflective of a new reality in the US labor force - and an apparent U-turn from the Covid-19 pandemic detour when millions of people retired earlier than expected.
![The number of Americans working into their twilight years has doubled in the past 30 years](https://i.dailymail.co.uk/1s/2023/12/15/22/79014769-12869153-The_number_of_Americans_working_into_their_twilight_years_has_do-a-2_1702679289807.jpg)
The number of Americans working into their twilight years has doubled in the past 30 years
Since the late 1980s, the number of older workers remaining in the labor force has been steadily increasing - aside from the pandemic blip when the trend momentarily reversed.
For most of the late 1980s and again in 1993, over-65s made up around 11 percent of the workforce, according to the Pew research. From 1989 to 1992 and again from 1994 to 1999, the figure was 12 per cent.
'In some ways, this isn't surprising: We're an aging society,' Richard Fry, lead author of the study told The Washington Post.
'But it isn't just that there are more older adults in the workforce, it's that a larger share of them are working. And it tends to be better-educated, older adults with a college degree.'
Some 44 percent of older workers today have a bachelor's degree or more education, compared with 18 percent in 1987, the study found. That puts them about on par with workers ages 25 to 64.
The rise in college-educated older workers in higher paid jobs has also helped narrow the pay gap between retirement age workers and younger ones.
The $22 median hourly wage for over-65s last year was just $3 shy of the median for younger workers aged 25 to 64.
That is down from an $8 average wage gap in 1987, according to the Pew research.
Older Americans are healthier than they were in the past, which means they are likely to be able to stay later in the workforce. The nature of work has also changed - with physically grueling positions becoming less common.
As a result, older workers are also putting in more hours now than they were in past decades. Today, 62 percent of over-65s are working full time, compared to 47 percent in 1987.
![Major public figures including President Biden, who is aged 81, demonstrate how the traditional path of retirement in your mid-60s is becoming increasingly outdated](https://i.dailymail.co.uk/1s/2023/12/15/21/79021445-12869153-image-m-135_1702676957166.jpg)
Major public figures including President Biden, who is aged 81, demonstrate how the traditional path of retirement in your mid-60s is becoming increasingly outdated
Another key factor, the report found, are the policy changes over past decades.
Americans now have to wait until the age of 67, rather than 65 to access full Social Security benefits.
Older workers are also more likely than in previous decades to be receiving employer-provided benefits such as pension plans and health insurance.
Increasing numbers of companies have replaced pension funds that offer set payments after a certain age with more flexible workplace plans such as 401(K)s, which are tied to the stock market.
The research found that among workers ages 65 and older, 36 percent now have the option to participate in an employer- or union-sponsored retirement plan - up from 33 percent in 1987.
But the reasons for staying in work differs widely across income-groups. While wealthier Americans may choose to stay in work later in life, those on a lower income may have little choice.
High inflation is continuing to cut into household budgets, with increasing numbers of households struggling to make ends meet.
Nearly half of adults between 55 and 66 had no personal retirement savings as of 2017, according to census data cited by The Washington Post, making it difficult for them to stop working.
A study earlier this year revealed how wealthy households have almost ten times more money saved for retirement than those on a middle income.
![Wealthy households have almost ten times more money saved for retirement than those on a middle income, according to figures from the Government Accountability Office](https://i.dailymail.co.uk/1s/2023/12/15/22/73887535-12869153-Wealthy_households_have_almost_ten_times_more_money_saved_for_re-a-3_1702679289817.jpg)
Wealthy households have almost ten times more money saved for retirement than those on a middle income, according to figures from the Government Accountability Office
Analysis by the Government Accountability Office (GAO) shows the gulf between the retirement plans of rich executives and ordinary workers has widened exponentially in the last two decades.
A high-income household has around $605,000 saved for their twilight years - compared to $64,300 in a middle-income home.
The data highlights the extent of America's 'retirement crisis' which has left the vast majority of households ill-prepared for later life.