Older Americans Work Longer as Retirement Savings Fall Short

Myndie Friedman leaves her Long Beach, New York, home at sunrise each weekday, a block from the Atlantic Ocean.

She catches a 7:30 a.m. bus to a local train station for an hour-long ride to Midtown Manhattan. From there, Friedman takes the subway and walks 10 minutes to her office job as a medical administrator. The full commute totals two hours each way.

The trip would test anyone, but Friedman is nearing 70. The widow has no intention of retiring. Her monthly Social Security check covers only a third of her living expenses, she told CBS News.

"I need another two-thirds to live the way I'm living," she said. "You have to eat."

Friedman belongs to a rising group of older Americans who cannot afford to retire or must return to work. Nearly one in five adults 65 and older holds a job or looks for one, the highest share in decades, according to federal labor data and Pew Research. These workers span industries, regions and education levels. They call their jobs a financial must, not a preference.

Social Security averages $2,071 a month in 2026. A single adult's baseline spending hits $4,641 monthly before phone bills, home repairs or gifts, per SoFi Bank.

That gap drives many back to work when they expected to retire. "Rising costs are on my mind, and they're just going to go higher," Friedman said. "You have to eat. You have to have health care. But when you retire, you don't only want 'have-tos.' I'd like to enjoy my life."

A 2024 AARP survey showed 20% of Americans 50 and older lack retirement savings. Another 70% fear prices will outpace income.

The trend built over decades. In 1985, labor force participation for those 65 and older bottomed below 11%. Over the last 20 years, employment in that group jumped 117%, the Centers for Disease Control and Prevention reports. The Bureau of Labor Statistics forecasts the 75-and-older workforce to grow 97% from 2020 to 2030, outpacing all age groups.

The CDC points to longer lifespans and savings that lag costs. A nest egg for 15 retirement years fails over 25 or 30.

The average American has under $1,000 saved for retirement, says the National Institute on Retirement Security. That includes those with employer plans and 56 million without. For savers, the median balance stands at $40,000.

Not every older worker sees the job as a burden. Helen Cuocci, in her 70s, stocks shelves and rings up customers at a CVS in Connecticut. She joined CVS 18 years ago after 40 years as an administrative assistant.

"I never thought I would get a retail job," she told CBS News. "I always thought I'd be sitting at a little desk with my cup of coffee and just on my computer. But this is really nice. You're more active, and you see more people."

Cuocci's paycheck helps, but full-time status brings health benefits. They cut costs for her husband's pricey medication. "We own a home, we have two cars and we like to travel," she said. "Without working at CVS, I couldn't do all these things."

Many older workers switch fields. Alan Bergman, 71, of Somers, New York, ran a printing company before retiring in 2018 after a sale. Restless and worried about savings for him and his wife, he started as a personal historian. He interviews seniors and publishes their life stories from home.

"I never expected it, but this chapter is the most fulfilling one yet," Bergman said.

Geoffrey Sanzenbacher, an economics professor at Boston College and researcher at the Center for Retirement Research, groups Bergman with "un-retired" Americans. Older workers rejoin the labor force when the economy strengthens, he said.

"Workers tend to un-retire when it's easiest to do so," Sanzenbacher told CBS News. Re-entry means competing with younger candidates.

Those needing work for basics often take new, demanding roles like retail with standing and customer contact.

Catherine Fisher, a LinkedIn career expert, said employers undervalue older workers' skills. "The older generation has so much experience that they can bring to the table," she said. "Communication, adaptability, leadership — those are skills that you acquire over time."