The U.S. is witnessing a noticeable rise in elderly participation (65 years and older) in the workforce, reflecting economic progress. This increase can be linked to evolving societal standards and financial requirements. Longevity and better health outcomes are enabling older individuals to prolong their careers, augmenting their quality of life as well as enriching the workforce.
However, financial straits due to meager retirement savings and escalating healthcare expenses are pressing many elders to stay in or reenter the job market. Hence, policies that favor flexible work schedules, age-friendly workplaces, and robust retirement plans are critical.
In light of these developments, a critical reassessment of standard retirement age and pension systems is vital to align with changing realities and demand. It is essential to explore the impacts of the elderly’s increased workforce engagement on individual well-being and broader socio-economic facets to formulate evidence-based strategies and campaigns.
Accentuating this age group’s contributions to the job market could mitigate age discrimination and foster inclusivity. The expertise and wisdom of older employees can have significant benefits for their respective organizations and sectors.
According to the U.S Bureau of Labor Statistics, the average U.S worker’s age has risen, and by 2032, the median age of the workforce will be around 42.7 for men and 42.5 for women.
U.S sees increase in senior workforce engagement
This surge is linked to improved healthcare, delayed retirements, and continued educational pursuits. Employers need to adjust their HR strategies to accommodate this shift with flexibility, wellness programs, ongoing training, and emphasis on diversity.
The Pew Research Center reports that nearly 20% of U.S citizens aged over 65 were employed in 2023, a substantial increase from 35 years prior. The average hourly wage for this group also climbed from $13 in 1987 to $22 in 2022. The uptick in employment among older Americans is attributed to better health, desire for engagement, and financial necessity due to inadequate retirement savings.
Joseph Quinn, a Boston College professor, views the expanding senior workforce as positive but cautions the necessity to understand many work more out of need than choice. He stresses the importance of acknowledging the financial hardships and limited opportunities many senior citizens face, while also ensuring adequate support and protections for older employees.
Richard Fry and Professor Gregory DeFreitas attribute the surge in senior workforce participation to better general health, increased education among the elderly, and a deviation from stringent pension schemes. However, they also warn of potential financial instability due to weak pension growth and market volatility associated with 401k plans.
