Why More Americans Are Delaying Retirement

Many Americans worry they will not have enough money saved to retire, and a growing group of the oldest workers demonstrates that these concerns are real. Nearly half a million Americans over age 80 remain in the workforce, and the 75-plus demographic is now the fastest-growing segment of working Americans.

For some, staying on the job provides structure, social interaction, and fulfillment. For others, it is an economic necessity in the face of rising health care costs, longer life expectancies, or the need to support a spouse or family member.

Whether by choice or circumstance, working into your 70s, 80s, and beyond brings significant planning implications. If you—or an aging parent, spouse, or grandparent—are still working later in life, here are key considerations.

Why More Seniors Are Working Past “Retirement Age”

Not long ago, continuing to work past age 65 was rare. Today, with many describing the “American Dream” as increasingly out of reach, the traditional vision of retiring at 65 and living comfortably off savings has faded.

A recent Bankrate survey found that 57 percent of American workers feel behind on their retirement savings, with 35 percent feeling significantly behind. Among older workers, 68 percent of Gen X and 66 percent of Baby Boomers share this concern. The Federal Reserve further reported that nearly 46 percent of American households had no retirement savings as of 2022.

While those age 70 and older make up less than 6 percent of the workforce, the number of working Americans over 80 has grown from 3.6 percent to 4.2 percent in the last decade. Workers aged 75 and above are now twice as likely to remain employed compared to the early 1990s. About 9 percent of people aged 75 and older are currently employed—more than double the share in 1987—and one in four workers over 80 are self-employed.

Key Considerations for Seniors Working into Their 80s

Financial Planning

• Earned income may make Social Security benefits taxable.
• Required Minimum Distributions (RMDs) begin at age 73, even if you are still working (with limited exceptions).
• Pension benefits may be reduced or offset if you continue working.

Health Care and Long-Term Care

• Medicare does not cover long-term custodial care—plan for supplemental insurance.
• Employer coverage must be coordinated with Medicare to avoid penalties or gaps.
• Powers of attorney and health care proxies are critical in case of sudden incapacity.

Estate Planning

• Update wills and trusts to reflect ongoing work and asset growth.
• If you own a business, clarify succession and transfer plans.
• Balance current spending needs with long-term legacy goals.

Legal and Policy Context

• Be aware of your rights under age discrimination laws.
• Understand how income affects Social Security, Medicare, and Medicaid.
• Proactive elder law planning reduces risk and ensures continuity.

Real-World Stories

Business Insider recently profiled Lydia, an 81-year-old who continues working to cover basic living expenses and health care. Like many of her peers, she described the decision as less a choice than a necessity, citing health concerns, loneliness, and the high cost of living.

Others work later in life by choice. A 101-year-old told TODAY.com she enjoys being around people, while a woman in her 90s remained with the same company for 75 years. One 88-year-old continues full-time employment to set a positive example for her grandchildren.

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Why Seniors Keep Working

• Financial pressure: Social Security alone rarely covers living expenses, and many lack pensions or sufficient savings.
• Purpose and connection: Work provides structure and social interaction.
• Health and longevity: Staying active can promote physical and mental well-being.
• Health coverage: Employment may provide vital health insurance.
• Passion: Some love what they do and see no reason to stop.
• Employer demand: Certain industries rely on the experience and institutional knowledge of older workers.

Flexible job options and age-friendly workplaces allow many seniors to transition more gradually into retirement, rather than facing an abrupt end to their careers.

Financial Planning in Practice

Continuing to work changes the tax and benefit landscape. Additional income can make Social Security taxable—up to 85 percent depending on combined income. At age 73, RMDs from retirement accounts begin, even if you are still employed, with limited exceptions for current-employer 401(k) plans. Some pension plans also reduce benefits if you continue to earn wages.

Planning Tips

• Review your tax situation annually.
• Coordinate retirement account withdrawals with income.
• Check with your pension administrator to confirm potential reductions.

Health Care and Long-Term Care Planning

Health care needs and risks increase significantly in your 70s and 80s. Medicare does not cover long-term custodial care, making supplemental insurance essential. Delays in enrolling in Medicare Parts A and B while remaining on an employer plan can lead to penalties or coverage gaps. Powers of attorney and health care proxies help protect you if sudden illness prevents decision-making.

Planning Tips

• Confirm Medicare enrollment and coordinate with employer benefits.
• Consider supplemental coverage or long-term care insurance.
• Keep incapacity planning documents up to date.

Estate Planning Adjustments

A longer working life often means additional assets, evolving family needs, and updated estate planning documents.

Key Strategies

• Update wills and trusts as circumstances change.
• Coordinate business succession with estate plans.
• Balance asset use for personal needs with inheritance goals.

Legal and Policy Issues

Legal frameworks also shape seniors’ ability to continue working.

• Age discrimination persists despite legal protections.
• Rules governing Social Security, Medicare, and Medicaid are complex and may change.
• Potential Social Security reform could alter future benefits, particularly for those delaying retirement.

Planning Tips

• Know your rights under age discrimination laws.
• Seek professional guidance on how earnings affect benefits.
• Work with elder law attorneys and financial planners to anticipate changes.

Planning for an Extended Career

Retirement today is less a fixed age than an evolving, personal decision. For many Americans, working into their 80s requires careful planning to balance finances, health care, and estate considerations. Traditional retirement advice may overlook these realities.

A thoughtful, updated plan—developed with legal and financial professionals—ensures you can continue working as long as you choose or need, while protecting your health, wealth, and legacy.