Eighty percent of older adult households do not have the financial resources to survive a major change such as widowhood, serious illness, or a need for long-term care, according to a study by the National Council on Aging (NCOA).
Financial conditions are keeping senior citizens in the workforce longer, or forcing them back when their retirement plan didn't work out financially. Meanwhile, employers are pushing people in their 70s out of the workplace, sometimes illegally.
Learn why employers don't want senior citizens working, and find out the impact it's having on society.
Resolve $10,000 or more of your debt
National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.1 <p>Clients who complete the program and settle all debts typically save around 45% before fees or 20% including fees over 24–48 months, based on enrolled debts. “Debt-free” applies only to enrolled credit cards, personal loans, and medical bills. Not mortgages, car loans, or other debts. Average program completion time is 24–48 months; not all debts are eligible, and results vary as not all clients complete the program due to factors like insufficient savings. We do not guarantee specific debt reductions or timelines, nor do we assume debt, make payments to creditors, or offer legal, tax, bankruptcy, or credit repair services. Consult a tax professional or attorney as needed. Services are not available in all states. Participation may adversely affect your credit rating or score. Nonpayment of debt may result in increased finance and other charges, collection efforts, or litigation. Read all program materials before enrolling. National Debt Relief’s fees are based on a percentage of enrolled debt. All communications may be recorded or monitored for quality assurance. In certain states, additional disclosures and licensing apply. ©️ 2009–2025 National Debt Relief LLC. National Debt Relief (NMLS #1250950, CA CFL Lic. No. 60DBO-70443) is located at 180 Maiden Lane, 28th Floor, New York, NY 10038. All rights reserved. <b><a href="https://www.nationaldebtrelief.com/licenses/">Click here</a></b> for additional state-specific disclosures and licensing information.</p>
The rise of AI and tech advances
A 2025 study by Nature has uncovered a serious problem with AI bias against older adults, specifically women. This creates a serious problem when AI tools are integrated into Human Resource processes such as hiring or employment reviews.
Older adults are also less likely to have familiarity with using these tools that employers want, which leaves working seniors stuck between a rock and hard place.
Budget cuts
Older adults tend to be more advanced in their careers, which means higher salaries — just the sort of thing companies want to axe when looking at reducing their operating budgets.
Wanting to hire someone younger and cheaper might be understandable, but it's also illegal — and has led to an increase in age discrimination cases for the past three years.
They haven't kept up with tech
It's a common workplace myth that older adults haven't kept up with technology, and a 2024 survey by Age Without Limits found that one in four people believe it — although it isn't necessarily true.
It can also be a self-fulfilling prophecy since employers are less willing to offer in-job training as people age, putting them behind younger employees who receive training on new tech in the workplace.
Physical demands are too great
Physically demanding jobs do, in fact, get harder with age. This can lead to more injuries for older adults, and can create hazards for other employees. If a person has become a risk because of physical demands, then it can be necessary to remove them from the job.
In previous eras, this expertise was transitioned into training or management positions, but many employers are now choosing to let them go to keep salary budgets lower.
Company "culture" clashes
Many employers have put a focus on "company culture" as a selling point to work there, and they want to project a "cool" and modern vibe. Older adults can be viewed as out of touch, but taking younger employees under your wing to mentor them can help foster a better impression.
The "retirement track"
Employers often view older adults as just putting in their time until retirement, so it's easier for them to think of letting senior citizens go as "helping" them retire early. This can often be detrimental since workers aren't necessarily ready to retire yet, and may still require income.
Higher health costs
Healthcare costs rise with age — for both employees and employers — driven by higher insurance costs and increased time off for health needs. U.S. employers already offer some of the lowest vacation and sick day benefits compared to international standards, and that contributes to less health maintenance in younger workers, which leads to increased problems in older age, continuing the cycle.
Fear of lawsuits
Mature employees are often more familiar with norms that favor workers' rights, and are perceived as more likely to cause legal problems if their employer is out of compliance with legal standards. In reality, that just adds age discrimination to the list of potential lawsuits — and those are on the rise.
Pensions
Employers will often claim they don't have to pay out pensions if a worker is fired for cause. Pension denials can be appealed, of course, but older adults who have a pension plan as part of their benefit package might be up first on the chopping block if a company is looking to reduce operating costs.
Earn as much as $1K doing simple online tasks
A company called Freecash has compiled all sorts of quick cash tasks from about a dozen advertisers and market research companies thirsty for more data. Freecash has paid out over $13 million to users since 2019, and has over 50,000 five-star reviews on Trustpilot.
Sign up here to see how much you could earn.
Mandatory retirement age
Some companies have a "mandatory" retirement age policy, but it's only legal in a handful of instances (like firefighters and law enforcement).
Employers sometimes use this as an excuse to push out workers of retirement age, blaming it on company policy even though it is still age discrimination.
Obsolete skills
Older adult workers can find themselves in the position of being the only one who can wrangle outdated tech that employers have avoided upgrading to avoid a large one-time expense. This can give an impression of job security, but everything gets updated eventually, which can result in job loss due to now obsolete skills that are no longer relevant.
Slower work pace
A lifetime of experience helps older adults set a manageable work pace for themselves, which can make them appear slower than younger workers who set a pace destined for burnout. Employees in their 70s who are given an unrealistic workload might be next on the list for layoffs.
Bottom line
Ultimately, there is a retirement crisis in the U.S. that's leading to more 70-year-olds still being in the workforce. This is often because they haven't been able to get ahead financially enough to retire. It's understandable that workplaces may not want to accommodate older workers who are of retirement age, but without societal safety nets that allow for retirement, there isn't much else older adults can do other than keep working.
More from FinanceBuzz:
- 7 things to do if you’re barely scraping by financially.
- Find out if you're overpaying for car insurance in just a few clicks.
- Make these 7 savvy moves when you have $1,000 in the bank.
- 14 benefits seniors are entitled to but often forget to claim