Financial Necessity, Not Passion: Why Millions of Seniors Can’t Afford to Retire
Growing anxieties surrounding living costs and insufficient retirement savings are forcing a substantial portion of older Americans to remain in the workforce or return to work after retiring.
According to data from the U.S. Bureau of Labor Statistics (BLS), approximately 12 million out of 62 million Americans aged 65 and older—roughly 1 in 5 seniors—were actively working as of 2024. Rather than staying employed purely for social engagement, a significant number of seniors are working simply to cover everyday expenses.
A survey conducted by AARP reveals that 41% of older adults who are working or actively job hunting cited covering daily living costs as their primary reason for working. In contrast, only 9% reported working primarily because they enjoy their jobs.
Un-Retiring: Financial Strain Forces Seniors Back into the Job Market
The trend of returning to work post-retirement is also gaining momentum. The AARP study found that 7% of retirees entered the labor market again within the past six months, up slightly from 6% in the previous year’s survey.
Primary Reasons Seniors Return to Work Post-Retirement
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Financial Need & Economic Uncertainty: 48%
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Relieving Boredom: 15%
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Desire to Help Others: 14%
Carly Roszkowski, Vice President of Financial Resilience Programming at AARP, emphasized that basic living expenses are the single biggest driver keeping seniors employed or seeking job opportunities, adding that the trend of working longer is likely to continue.
Health and Wealth Dictate Retirement Timing
When deciding when to retire, financial readiness and personal health remain the governing factors:
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22% retired because they felt financially secure enough to do so.
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21% retired due to personal health problems or disabilities.
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15% retired upon reaching Social Security benefit eligibility.
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13% retired due to other pension or retirement benefit milestones.
Together, finance-related reasons account for roughly half of all retirement decisions. While 68% of retirees felt they retired at the right time, 28% expressed regret, stating they retired too early.
Age Discrimination Creates High Barriers for Older Job Seekers
Despite needing or wanting to work longer, older adults face steep hurdles in the labor market. Among respondents:
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24% expressed concern about losing their current job within the next 12 months.
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67% anticipated that finding a new job would be difficult, with 32% predicting it would be “very difficult.”
When asked about the biggest obstacle to landing new employment, 35% identified age discrimination as their primary barrier, followed by health issues or physical disabilities at 22%. The findings illustrate a stark disconnect between the economic necessity for seniors to work longer and the harsh realities of the modern hiring landscape.
