Older workers increasing in number, earning potential

Older workers earning potential overview: 

• Who: A new study by the Pew Research Center revealed roughly 1 in 5 Americans age 65 and older were employed in 2023 and are making more money on average than in previous decades. 
• Why: Pew attributed the pay increase to older workers working more hours than in the past, more commonly having four-year degrees and receiving more employee-provided benefits than in previous decades. 
• Where: Pew Research Center is a not-for-profit and nonpartisan think tank based in Washington, D.C. 

Around 1 in 5 Americans age 65 and older were employed this year, nearly doubling the percentage of workers from that age demographic who were employed 35 years ago, and have increased their earning potential, according to a new study by the Pew Research Center. 

The Pew study found older workers were also making more money than they have in previous decades, with the typical wage for a worker age 65 or older sitting at $22 per hour, compared to $13 per hour in 1987. 

The increase in earnings bests the increase seen by younger workers, according to Pew, which revealed this has narrowed the wage gap between older ages and workers in the aged 25 to 64 demographic. 

In total, the Pew study determined older American workers now account for 7% of all the wages and salaries paid by employers in the U.S., more than tripling a previous share of 2% from 1987. 

U.S. workers 65 and older working more hours on average than in previous decades, study says

Pew attributed the increased wages for older workers to them working more hours on average than they have in previous decades and the fact they are more likely to have a four-year degree than before. 

Older workers are also more likely to be receiving employer-provided benefits such as pension plans and health insurance than in previous decades, according to Pew, which found the same is not the case for younger workers. 

Pew found older workers are also more than twice as likely than their younger counterparts to be self-employed, with 23% of those age 65 and up found to be self-employed, compared to only 10% of workers age 25 to 64. 

Last month, a federal judge in California gave his initial approval to an $18 million settlement made between HP Inc. and Hewlett Packard and a group of ex-employees arguing they were pushed out of their jobs on account of their age. 

Have you noticed a trend of more older employees in the workforce? Let us know in the comments.

Read About More Class Action Lawsuits & Class Action Settlements:

• Marriott class action claims hotelier exploits visa program for labor
• Class action claims NY Papa John’s franchises commit wage, scheduling violations
• Activision Blizzard to pay $54M settlement to resolve female employee discrimination lawsuit
• Merrill Lynch class action alleges company pays retirement account holders unreasonably low interest rates