1 in 4 seniors are still working – here are the states with the biggest jump in over-65s in employment

Higher costs of living, changes in welfare policies, and significant growth in the population over 65 have resulted in a greater share of older Americans still working.

Better health and a more flexible job landscape have also contributed to Americans retiring from the workforce in recent years.

The share of Americans reporting they are retired fell from 16.8 percent in March 2022 to 16.2 percent in March 2024, according to US Census Bureau data analyzed by Credit boom.

About 22 percent of people over 65 said they were still working in March 2024; a slight decrease compared to 22.5 percent two years earlier.

But according to the report, some states have seen their populations of older workers grow much faster than others.

New Jersey topped the list of states with the largest increase in the number of retirement-age workers, LendingTree found, with a huge jump of 66.5 percent.

In March 2022, 20.3 percent of people over 65 were employed in the Garden State. Two years later this had risen to 33.8 percent.

The increase in the number of older workers reflects population trends in the state.

According to the New Jersey Department of Labor and Workforce Development, the share of residents aged 65 and older is increasing, while the share of adults aged 18 to 64 is decreasing.

The population aged 65 and older is expected to grow 68.7 percent between 2012 and 2032 – accounting for 21.8 percent of the state’s total population.

Second on the list is Delaware, where the number of older workers has increased by 37.4 percent, and third is Indiana, where the number of older adults in the workforce has increased by 32.2 percent over the past two years.

In addition to population shifts, the increase in the number of retired workers is due to financial insecurity, the report found.

“These increases could be a troubling sign that more and more older Americans need extra income in their so-called golden years,” said Matt Schulz, chief credit analyst at LendingTree.

“Inflation could take a big toll on the assumptions these people made about what they would need to make ends meet in retirement.”

Persistent inflation is eroding household budgets, leaving many Americans concerned about whether they will have enough savings to get through the later years.

While some Americans may return to work to make ends meet, others may “not retire” because they feel restless and long for the hustle and bustle of an office environment.

“Maybe they’re bored, lonely, looking for purpose or looking for a little extra income,” Schulz said.

New Jersey topped the list as the state with the largest increase in the number of retirement-age workers, LendingTree found, with a massive 66.5 percent increase over the past two years

Joyce Fleming (pictured, right) had to return to work after her retirement due to the rising cost of living

Amy Counts returned to work because she missed the excitement and bustle of the office

According to the LendingTree analysis, other states have seen employment declines among the older population over the past two years.

Iowa saw the largest decline in the number of people over 65 in the labor force: a decline of 36.5 percent, from 27.1 percent in March 2022 to 17.2 percent in March 2024.

The Midwest state has experienced a slower post-pandemic employment recovery than the rest of the country, according to LendingTree.

Much of the state’s workforce lost during the pandemic was made up of older workers who had no clear plans to return to work.

West Virginia had the second highest drop of 34.3 percent – ​​from 23.9 percent in March 2022 to 15.7 percent in March 2024.

Kansas, meanwhile, trailed closely at 34 percent, falling from 28.2 percent in March 2022 to 18.6 percent two years later.