A higher cost of living, changes in Social Security policies, and significant growth in the population over age 65 have meant that a greater proportion of older Americans are still working.
Improved health and a more flexible work landscape have also contributed to more retirement-age Americans in the workforce in recent years.
The share of Americans reporting being retired fell from 16.8 percent in March 2022 to 16.2 percent in March 2024, according to U.S. Census Bureau data analyzed by loan tree.
About 22 percent of those over 65 said they were still working in March 2024, a slight decrease from 22.5 percent two years earlier.
But some states have seen their population of older workers grow at a much faster rate than others, according to the report.
A higher cost of living, changes in Social Security policies, and significant growth in the population over age 65 have meant that a greater proportion of older Americans are still working.
New Jersey topped the list of the state with the largest increase in retirement-age workers, LendingTree found, with a whopping 66.5 percent jump.
As of March 2022, 20.3 percent of people over the age of 65 were employed in the Garden State. Two years later, this figure had increased to 33.8 percent.
The increase in older workers reflects demographic trends in the state.
According to the New Jersey Department of Labor and Workforce Development, the share of residents age 65 and older is increasing, while the share of adults ages 18 to 64 is decreasing.
The state’s 65 and older population is projected to grow 68.7 percent between 2012 and 2032, representing 21.8 percent of the state’s total population.
Second on the list is Delaware, where the number of older workers has increased 37.4 percent, and third is Indiana, where the number of older adults in the workforce increased 32.2 percent over the period. of two years.
In addition to population changes, the increase in retirement-age workers is due to financial insecurity, according to the report.
“These increases could be a worrying sign that more and more older Americans find themselves needing additional income in their so-called golden years,” said Matt Schulz, chief credit analyst at LendingTree.
“Inflation could be taking its toll on the assumptions these people made about what they would need to survive in retirement.”
Persistent inflation is eroding family budgets, leaving many Americans worried about whether they will have enough savings to survive their later years.
While some Americans may return to work to make ends meet, others may “unretire” as they feel restless and long for the bustle of an office environment.
“Maybe they’re bored, lonely, looking for a purpose or a little extra income,” Schulz said.
New Jersey topped the list of the state with the largest increase in retirement-age workers, LendingTree found, with a whopping 66.5 percent jump over the past two years.
Joyce Fleming (pictured, right) had to return to work after retiring due to the rising cost of living.
Amy Counts returned to work because she missed the excitement and bustle of the office.
Other states have seen employment among older populations decline over the past two years, according to LendingTree’s analysis.
Iowa saw the largest decline in people over age 65 in the workforce: 36.5 percent from 27.1 percent in March 2022 to 17.2 percent in March 2024.
The Midwestern state has suffered a slower post-pandemic employment recovery than the rest of the country, according to LendingTree.
Much of the state’s lost workforce during the pandemic was among older workers with no apparent plans to return to work.
West Virginia had the second-highest drop, at 34.3 percent, from 23.9 percent in March 2022 to 15.7 percent in March 2024.
Meanwhile, Kansas followed closely at 34 percent, falling from 28.2 percent in March 2022 to 18.6 percent two years later.
