Working After Retirement …or Not: How to Facilitate Both Options

For the past two weeks, we’ve written about findings from the MHI 2023 Global Healthy Aging Survey. We examined ways social engagement helps older adults remain happy and healthy as they grow older, as well as how their senior living situation can impact quality of life. In this third blog on the survey’s results, we’re examining the researchers’ findings about people who are working after retirement. For some older adults, it is a financial necessity, but for others, working is about much more than money.

A healthy aging analysis

The 2023 Global Healthy Aging Survey conducted by the McKinsey Health Institute (MHI) gathered insights from over 21,000 adults age 55+ representing 21 countries (roughly 1,000 respondents per country). The survey aimed to explore health perceptions, preferences, and activities among older adults by assessing 53 factors to identify their significance and impact on health.

The findings highlighted how key elements such as a sense of purpose, effective stress management, physical activity, lifelong learning, meaningful relationships, and financial security play vital roles in shaping respondents’ views on healthy aging. Additionally, the survey revealed that social participation — in particular volunteerism — has an especially positive effect on healthy aging.

The work landscape for older adults

With regard to working, the MHI researchers asked survey respondents which of the following four activities they were engaged in:

Not working
OR
Working
AND
Doesn’t want to work
OR
Wants to work

The idea is that people would choose a response from each of the two categories. So, for example, they might choose “Not working” and “Doesn’t want to work” OR “Not working” and “Wants to work.”

Not surprisingly, the survey data shows that across various economies (low, middle, high income), as people age, their desire to work generally diminishes, dropping to 38% among those aged 80 and older. Compare that to over two-thirds of those aged 55 to 64 who said that want to work. Additionally, 19% to 25% of survey respondents want to work but are not currently employed.

The stats on older adults’ work status (including working after retirement)

For the purposes of this blog post, let’s take a closer look at the results for the 11,747 survey respondents age 55+ who live in high-income economies, like the United States:

53% are not working and don’t want to work.
23% are working and want to work.
19% are not working but want to work.
4% are working but don’t want to work.

These numbers bring up several points…

Not working and don’t want to work

First, we see that a majority of older adults (53%) in high-income countries (like the U.S.) are not working and don’t want to be. In many cases, these are people who worked hard their entire adult life, saved up, and are now enjoying their retirement years.

In other cases, these people may have a partner/spouse who works while they stay at home. They may be home with children or grandchildren, be full-time volunteers or family caregivers, or a number of other possible scenarios.

Working and want to work

The second largest contingency (23%) are those who are working — some of whom are working after retirement — and want to work. The top motivating factors among this group were:

Financial reasons
Personal fulfillment
Health reasons

So, we see that many of the older adults who are working by choice find that having continued income is desirable. Maybe they recognize that they don’t yet have enough savings to fully retire, or maybe they enjoy having a little extra money at the end of the month.

Among those who cited “personal fulfillment,” maybe they retired only to find that they were bored being at home. In some cases, people who are working after retirement will go back to their previous career while others will start a so-called “encore career” — doing something new that appeals to their passions.

There are also people who continue working for health reasons, though this response is a bit vague. Maybe they want to stay active or want to combat loneliness and isolation with the camaraderie of the workplace. Or for those who are not yet eligible for Medicare, maybe this is indicative of the person’s need for health insurance coverage.

All told, we can surmise that roughly 75% of older adults are content with their choice to either work or not work. It is good to see that many people are in this position!

Not working but want to work

But what about those almost 1 in 5 older adults who are not working but want to? We don’t know what the specific reasons are for their want or need to work. It may be for one of the three reasons cited above by those who are working after retirement age by choice. But, for those in high-income nations, the top three barriers noted by those older adults who aren’t working but who want to work:

27% were having difficulty landing a job.
18% cited a lack of attractive opportunities.
12% said their skills aren’t in demand.

While the overall job market in the U.S. is good with near-record low unemployment, it can be challenging to find a job for those who want to work in certain industries or roles. But it is also incumbent upon hiring managers to recognize that older adults can be highly appealing job candidates.

Older employees, such as those working after retirement, bring decades of valuable experience to potential employers. In addition, they often possess well-developed problem-solving skills and a strong understanding of professional dynamics, which can benefit organizations in a number of ways. What’s more, they are typically highly reliable employees with a strong work ethic.

As an added benefit, many older adults seek work out of a desire to find meaningful ways to contribute to their communities. This motivation can lead to greater job satisfaction and dedication. (Compare that to so many workers who simply want a paycheck.)

Though 12% of those surveyed said that “their skills aren’t in demand,” employers would be wise to tap into the many hard and soft skills that older adults can bring to a company.

Working but don’t want to work

Finally, there is that 4% of survey respondents from high-income countries like ours who are working but don’t want to be. This is truly a difficult situation to see people experiencing.

Continuing to work even when not desired can be particularly challenging for older adults who may be suffering from age-related health problems or mobility issues. This underscores the need for our society and the senior living and care industry to create reasonably priced housing and care options that work for this group of older adults.

Respecting older adults’ working after retirement wishes

There is nothing wrong with kicking back and enjoying a relaxing, carefree retirement. But it’s also worth noting that working after retirement can give older adults not only an income but also social opportunities and a sense of worth. The key factor should be whether an older adult is working by choice or by necessity — as well as whether they would like to be working but can’t seem to find employment.

Ideally, people who want to work should be able to find a well-suited role, and people who no longer want to work (or are no longer physically able to) should not have to. Our nation’s policies and social supports for people of retirement age should acknowledge, respect, and facilitate the wishes of both groups on this front.

Similarly, the senior living and care industry should find ways to accommodate and support residents working after retirement … as well as not working. That might mean offering residents who want to work transportation to their job, providing on-site employment opportunities, or adding on-site, Wi-Fi enabled workspaces where residents can work remotely. But it should also include more affordable options for housing and care so that people can live with dignity during their retirement years without having to work.

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