More U.S. Residents Working Past Retirement Age—Vermonters Have for Years
The Public Assets Institute notes that 26% of Vermonters aged 65 and over were in the workforce in 2023, the highest in the country.
A recent national report highlights a growing trend across the United States: more residents aged 65 and older are choosing, or needing, to work past the traditional retirement age. According to an analysis by The Pew Charitable Trusts, factors such as rising poverty and limited retirement income are contributing to this shift. For Vermonters, however, this isn't a new phenomenon – it's been a long-standing reality.
While the Pew study focused on an increase in labor force participation for older adults in 18 major U.S. cities, data consistently shows that Vermont has been at the forefront of this trend for years. Analysis from the Public Assets Institute, a Vermont-based fiscal policy think tank, confirms that the state has the highest rate of seniors in the workforce nationwide.
Vermont: Older and Still Working
The demographic makeup of Vermont differs significantly from the national average. As of 2023, 22.2% of Vermont's population was age 65 or older, according to the U.S. Census Bureau. This is notably higher than the national average of 17.7%. This "silver boom" in the Green Mountain State outpaces the rest of the country, presenting unique economic challenges and opportunities.
Here's a look at how Vermont's senior demographics compare to the national figures:
Why are Vermont Seniors Staying on the Job?
The reasons Vermont leads this national trend are multifaceted, according to analysis from state policy experts and economic data.
A primary driver is financial necessity fueled by Vermont's high cost of living. Reports from the Vermont Joint Fiscal Office have consistently shown that housing and healthcare costs in the state rank among the highest in the nation. These expenses can place a significant strain on those relying solely on fixed incomes from Social Security or retirement savings. With the state's average Social Security income falling below the national average, continued employment becomes essential for many to cover basic costs.
This financial reality is reflected in the state's high labor force participation rate for seniors. In its "State of Working Vermont 2024" report, the Public Assets Institute notes that 26% of Vermonters aged 65 and over were in the workforce in 2023. This figure, the highest in the country, suggests that for a large portion of Vermont's older population, work is a key component of their household budget.
However, financial pressure isn't the sole factor. According to AARP Vermont, many older adults also choose to continue working for the social engagement and sense of purpose it provides. Furthermore, Vermont's well-documented workforce shortages have led many employers to actively recruit and retain older workers, valuing their experience and reliability. This creates a dynamic where the need for income on the part of the senior population aligns with the need for labor on the part of Vermont businesses.
A Two-Sided Coin
Vermont's high rate of senior employment presents a complex picture. On one hand, it addresses critical workforce needs and allows older residents to remain active and financially stable. On the other hand, it raises questions about retirement security and whether Vermonters can truly afford to stop working.
State-level initiatives like the VermontSaves retirement program aim to help more workers build savings for the future. Yet, the underlying economic pressures remain. As the nation continues to grapple with an aging population and an evolving retirement landscape, Vermont's long-standing experience offers a clear case study of the challenges and adaptations ahead.