Why More Older Americans Are Staying in the Workforce

Retirement once signified a time of rest, leisure, and financial stability. However, for a growing number of older Americans, the traditional retirement model is shifting, with many continuing to work well beyond the age of 65. While financial concerns are often a primary factor, many also find purpose and fulfillment in staying employed. From a Catholic perspective, this trend invites reflection on the dignity of work, stewardship, and community responsibility.

The Changing Landscape of Retirement

In 2025, more Americans will turn 65 than in any previous year, according to the Alliance for Lifetime Income, marking what experts call the “Peak 65 zone.” The number of employed Americans aged 65 and older grew by more than 33% between 2015 and 2024, while the overall workforce grew by less than 9% during the same period, according to a CNBC analysis of Bureau of Labor Statistics data. This shift has made older workers a vital part of the labor market.

“It’s really hard for many employers in many sectors to fill key workforce needs right now,” said Jim Malatras, strategy chief at FedCap, a nonprofit focused on employment solutions. He noted that older workers can help “build key capacity where it’s desperately needed.”

But for many, remaining in the workforce is not simply a choice but a necessity. “The way the world is right now, everything’s going up, up, up,” said Diane Wetherington, 72, who works part-time after realizing Social Security wouldn’t be enough to sustain her retirement (CNBC).

A Catholic Perspective on Work and Retirement

The Catholic Church upholds the dignity of work as a fundamental human right. The Catechism of the Catholic Church states, “Work honors the Creator’s gifts and the talents received from Him” (CCC 2427). While retirement can be a well-earned rest, the Church also teaches that human dignity is not tied to productivity alone.

The shift away from employer-funded pensions toward individual retirement accounts has placed greater financial burdens on retirees, often leading them to extend their working years. “People really do use the Social Security full retirement age as an anchor in terms of when they should retire and claim benefits,” said Laura Quinby, associate director at Boston College’s Center for Retirement Research.

For many Catholics, the call to work beyond traditional retirement age can be an opportunity to practice stewardship—using time, talents, and resources to serve others. Whether in paid employment or volunteer roles, older adults contribute wisdom, mentorship, and stability to their workplaces and communities.

Challenges Facing Older Workers

Despite their contributions, older workers often face ageism in hiring practices. “They’re like vintage cars to us,” said Malatras. “They’re built to last, they’re full of value, but they’re treated often like high-mileage Pintos, and they don’t really have an opportunity to serve anymore” (CNBC).

Heather Tinsley-Fix, a senior advisor at AARP, encourages businesses to embrace age diversity, noting that older workers excel in soft skills and mentorship. Companies like Wegmans and Xanterra have recognized this by actively recruiting retirees for flexible, part-time roles.

Finding Purpose in Work at Any Age

Beyond financial necessity, many retirees find that staying engaged in meaningful work enhances their well-being. “It was the best thing that ever happened to me,” said Shari Nelson, who took a nonprofit job through Vantage Aging and chose to stay after completing the program.

Others, like Anne Sallee, a former public official who now works in economic development, find structure and fulfillment in continued employment. “I don’t enjoy not having things I have to do,” she said. “I never envisioned the ‘sit on the beach with your feet up and a cocktail’ kind of lifestyle” (CNBC).

A Catholic Approach to Retirement

The Church teaches that retirement should not mean disengagement from life but rather a shift toward new forms of service. Whether through continued employment, volunteering, or mentoring younger generations, older adults can continue to live out their faith through work.

St. John Paul II once said, “Work is a good thing for man—a good thing for his humanity—because through work man not only transforms nature, adapting it to his own needs, but he also achieves fulfillment as a human being” (Laborem Exercens, 9).

For Catholic retirees, this perspective can inspire a reimagining of later life—not merely as a time of withdrawal but as a period of renewed purpose, service, and stewardship in accordance with God’s plan.

As the workforce continues to evolve, so too must society’s understanding of retirement. Whether by necessity or choice, many older Americans are continuing to work, bringing valuable experience and wisdom to their roles. For Catholics, this trend aligns with the Church’s teachings on the dignity of work, the call to stewardship, and the importance of using one’s gifts to serve others.

Rather than seeing extended employment as a burden, it can be viewed as an opportunity—one that allows individuals to contribute, find fulfillment, and continue answering God’s call in their later years.

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