Employment after 65: Older Americans have both challenges and opportunities

One of the most significant factors making retirement more expensive is that people are living longer than ever before. While this is certainly positive news, it means retirement savings need to last much longer than in previous generations. A person retiring at 65 today might need to fund 20 to 30 years of retirement, compared to just 10-15 years a few decades ago. This extended retirement period requires substantially more savings to maintain the same quality of life.

Health care expenses have been steadily increasing over the years, outpacing general inflation, and long-term care expenses can be catastrophic for retirees. The combination of higher health care costs and increased longevity creates a significant financial burden that many retirees are unprepared to handle.

In addition, Americans approaching retirement age find that their expected retirement income falls short of what's needed to maintain their current lifestyle. A study by The Pew Charitable Trusts found that households with incomes between the poverty line and $75,000 are likely to fall short of their target retirement income by an estimated $7,050 a year. This gap often motivates older workers to remain in the workforce longer to build up additional savings or to supplement their retirement income.

Meanwhile, the landscape of retirement benefits has changed dramatically over the past few decades. Traditional pension plans, once a cornerstone of retirement security, have become increasingly rare in the private sector. In the mid-1980s, about half of private sector workers were covered by defined-benefit pension plans. This number has dropped to about 15%, according to media reports.

As a result, older Americans find themselves extending their careers due to financial considerations.

Many older Americans discover fulfilling second careers and work arrangements that effectively leverage their experience. Some find success in consulting roles that utilize their industry expertise, while others transition to part-time positions that offer greater flexibility. Many older workers excel in mentorship and advisory positions, where their years of experience provide particular value. Some choose to pursue entrepreneurship and small business ownership, while others embrace remote work opportunities that allow them to contribute while maintaining work-life balance.

Discrimination against older workers is a major challenge. Age discrimination takes two primary forms in the workplace: hiring bias and day-to-day treatment, according to SHRM researchers. In the hiring process, older workers frequently face limited interview opportunities, with potential employers questioning their long-term commitment and expressing concerns about salary expectations based on their experience level. Once employed, older workers often encounter systematic exclusion from training opportunities, face barriers to career advancement and experience social isolation within their teams.

Technology competency represents one of the most significant stereotypes facing older workers, with SHRM's research indicating that 49% of people managers report older employees being perceived as technologically incompetent. This perception creates ongoing challenges for senior workers, who must continuously develop their technical skills while fighting against preconceived notions about their adaptability. Many struggle to access appropriate training and development opportunities, making it increasingly difficult to keep pace with rapid technological changes in the workplace.

Meanwhile, while many older workers maintain high levels of capability and productivity, they often face unique physical demands in the workplace that require careful consideration. These challenges include adapting to workplace ergonomics, which may need modification to accommodate changing physical needs. Many must develop strategies for managing energy levels and stamina throughout the workday while also accommodating more frequent health-related appointments. The balance between work demands and self-care becomes increasingly important, particularly for those managing chronic health conditions. Despite these challenges, many older workers successfully adapt their work routines and environments to maintain their productivity and job satisfaction.

Age discrimination occurs when an individual who is 40 years of age or older faces adverse treatment in any aspect of employment specifically because of their age, according to the Department of Labor. Despite the valuable experience and knowledge older workers bring to the table, age discrimination remains a significant issue in the workplace. According to SHRM research, 30% of U.S. workers report feeling unfairly treated due to their age at some point in their career.

Under the Age Discrimination in Employment Act of 1967 (ADEA), protections extend to all facets of the employment relationship, from the initial job posting and hiring process through to retirement or termination. Discrimination can occur in various forms, including denial of opportunities for advancement, inequitable compensation or benefits, unfavorable job assignments or exclusion from training programs.

Age-based harassment is a significant form of discrimination addressed by the ADEA. While casual remarks or isolated incidents may not rise to the level of illegal discrimination, harassment becomes unlawful when it creates a hostile or offensive work environment or leads to adverse employment decisions. This could include persistent offensive remarks about a person's age or any pattern of behavior that creates an intimidating or hostile workplace atmosphere. The law also specifically prohibits retaliation against individuals who oppose age-discriminatory practices or participate in discrimination proceedings.

It's worth noting that certain employment actions based on factors other than age, such as retirement status or eligibility for specific retirement plans, do not constitute age discrimination under the ADEA.

As the American workforce continues to evolve, the trend of delayed retirement and extended careers presents both opportunities and challenges for older workers. While financial pressures, increased longevity and changing retirement benefits drive many to remain employed, they must navigate age discrimination, technological adaptation and physical considerations. Despite these obstacles, many seniors find rewarding second careers that leverage their extensive experience. As this demographic shift continues, employers and policymakers must work to create more inclusive workplaces that value the contributions of older workers while addressing the unique challenges they face. Understanding and addressing these issues is crucial for building a more equitable and sustainable work environment for all generations.