Study: States with the most people working past retirement age revealed
Expert on retirement savings
Indira Venkat serves as the Senior Vice President of Research at AARP, she joins LiveNOW from FOX to discuss a recent survey that found more than 20% of adults ages 50 and older have no retirement savings. Venkat explains how Americans are worried about covering basic expenses.
As the American population continues to age, a growing number of individuals are extending their careers well beyond the traditional retirement age, a new study shows.
The study, conducted by U.S. Money Reserve, used data from the U.S. Census Bureau and analyzed more than 260 metro areas and all 50 states.
They found the trend to work past retirement age was influenced by several factors, including economic necessity, personal fulfillment, increased life expectancy, and governmental policies that encourage extended participation in the workforce.
According to the company, the labor force participation rate among individuals aged 65 and older has experienced a notable increase since the 1980s.
Working past retirement age nearly doubles since 1980s
After reaching a low of 10.8% in 1985, the participation rate has steadily climbed and nearly doubled, reaching 19.2% in 2023.
FILE: Man working at a desk with a smartphone and laptop computer. (Credit: Neil Godwin/Future via Getty Images)
A recent study, with data collected by LendingTree, also found that while the number of U.S. adults who are 65 and older and are still in the workforce declined slightly between 2022 and 2024, the percentage was still double what it used to be in 1987.
In 1987, only 11% of adults that were 65 and older were still working, according to Pew Research data. As of March 2024, 22% of adults who were 65 and older were still in the workforce partly because of the higher cost of living.
Where most people work, don’t work past retirement age
Among states, the new study found that Vermont had the highest share of its over-65 population in the labor force, with 24.8% of the retirement-age population still working.
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Close behind were other New England states such as Massachusetts (23.8%), New Hampshire (23.0%) and Connecticut (22.6%). These areas tend to have both high educational attainment and high living costs, according to the data.
States where most people work past retirement age
- Vermont
- Massachusetts
- Nebraska
- New Hampshire
- Connecticut
- Maryland
- New Jersey
- Hawaii
- Wyoming
- North Dakota
In contrast, Southern states with less expensive living costs and lower levels of educational attainment tended to have the lowest rates of senior labor force participation.
States with the lowest senior workers included West Virginia (14.0%), Alabama (15.7%), Kentucky (16.0%), and Mississippi (16.1%). Arizona also stood out with low levels of retirement-age workers, likely because many individuals relocate to the state specifically for retirement purposes after exiting the workforce.
States were people are least likely to work past retirement age
- West Virginia
- Arizona
- Alabama
- Kentucky
- Mississippi
- Arkansas
- Michigan
- Florida
- Idaho
- Oregon
Cities With the Most People Working Past the Retirement Age
Among the nation’s largest metro areas, Washington, D.C. ranked the highest, with 25.5% of its over-65 population still employed.
Other notable large metro areas included Boston (24.6%), and Salt Lake City (24.4%), which also demonstrated strong labor force participation among the retirement-age population.
- Washington DC
- Boston, Cambridge, MA-NH
- Salt Lake City, UT
- Dallas, TX
- Memphis, TN
- Columbus, OH
- Houston, TX
- Baltimore, MD
- New York, Jersey City, NY-NJ
- Denver, CO
"These metro areas, often hubs of economic activity with diverse employment opportunities and high educational attainment, provide environments where older workers can maintain jobs that suit their experience and physical capabilities," U.S. Money Reserve wrote.