How Many Americans Work Beyond Age 65?

Retirement in the United States is no longer a clear-cut transition from full-time work to full-time leisure. A significant and growing share of Americans age 65 and older are continuing to work, often in part-time roles, as financial realities and personal preferences reshape what it means to retire. This shift is changing how households approach income, savings, and long-term planning in later life.

According to the Bureau of Labor Statistics, nearly 20% of Americans age 65 and above were either employed or actively seeking work in 2024. This figure includes both full-time and part-time positions, but the balance has shifted: while about 12% of older Americans work full-time, roughly 7.5% are in part-time jobs. Among those still working past 65, more than a third are now part-time employees-a much higher proportion than among workers ages 55 to 64, where only about 14% work reduced hours. Men are more likely than women to remain in the workforce at this age, with 23.4% of men and 16.2% of women 65 and older participating in 2024.

Changing Patterns in Retirement

The idea of retirement as a permanent exit from the workforce is increasingly outdated. After decades of decline, labor force participation among older Americans began rising in the late 1990s, reversing a trend that had seen participation fall to just 11-12% in the 1980s and 1990s. While the COVID-19 pandemic briefly interrupted this upward movement, participation rates have since rebounded, reflecting longer life expectancy, evolving work arrangements, and the need for continued income.

For many, the decision to keep working is driven by a combination of necessity and choice. Some older adults need to supplement retirement savings or keep pace with rising living costs, while others value the social engagement, structure, or sense of purpose that work provides. The shift toward part-time roles allows for a gradual transition, rather than an abrupt end to employment.

Financial Pressures and Flexibility

Working past 65 can help bridge gaps in retirement income, especially as traditional pensions become less common and Social Security alone may not cover all expenses. Households facing insufficient savings or unexpected costs may find that part-time work provides a crucial buffer. At the same time, the flexibility of part-time or consulting roles can make continued employment more manageable for those who want to scale back without leaving the workforce entirely.

This trend has practical implications for retirement planning. Rather than relying solely on savings and Social Security, many Americans are now factoring in the possibility of continued earnings. This approach can help smooth the transition into retirement, but it also requires careful consideration of health, job availability, and the potential impact on benefits. For those approaching retirement age, understanding how much to save and when to claim Social Security remains a central challenge-one explored in depth in our recent analysis of how much you should have saved by age 59.

Long-Term Trends and Considerations

According to a report from the Bureau of Labor Statistics, the share of Americans age 65 and older in the labor force has nearly doubled since the early 1990s. In 1994, just 11.6% of this age group were working or looking for work; by 2024, that figure had climbed to almost 20%. The increase is even more pronounced among those working part-time, reflecting both the desire for flexibility and the need to supplement retirement income.

For households planning for retirement, these trends highlight the importance of adaptability. Income in retirement may come from a mix of sources, including Social Security, personal savings, and continued work. Each option carries its own risks and trade-offs. For example, delaying Social Security can increase monthly benefits, but may not be feasible for those who need immediate income. Similarly, part-time work can provide financial and social benefits, but may be affected by health, caregiving responsibilities, or changes in the job market.

Labor force participation is a key economic indicator that measures the percentage of people either working or actively seeking work. For older Americans, this rate reflects not only financial necessity but also broader shifts in health, longevity, and the structure of retirement benefits. As more people live longer and healthier lives, the traditional boundaries of retirement are blurring, making it essential for individuals and policymakers to rethink how work, savings, and benefits interact in later life.