Financial Uncertainty Shadows America's Oldest Workers in 2024
December 27, 2025
Business News

Financial Uncertainty Shadows America's Oldest Workers in 2024

Older Americans face growing anxiety over income, healthcare, and employment amid policy and market challenges

Summary

As Americans aged 80 and above continue to engage in the workforce, many encounter heightened financial stress intensified by recent changes in social support programs, healthcare costs, and a difficult job market. Interviews with over 250 older workers reveal widespread worries about sustaining income, changes to Social Security and Medicaid, and navigating evolving technological demands in employment.

Key Points

Many Americans aged 80 and above continue working due to financial concerns and longevity.
Older workers like Kathleen York are adapting to technological changes to remain employable.
There is widespread anxiety about Social Security benefit reliability amidst administrative changes and potential trust fund depletion.
Medicaid and Medicare adjustments have increased health coverage worries among low-income elderly.
The job market has become more competitive and less favorable to older applicants, with a rise in tech-related skill demands.
Older Americans perceive age discrimination and struggle finding roles with comparable pay and flexibility.
Increased inflation and price rises for healthcare and housing have led to spending reductions among seniors.
Support delays and funding cuts in senior employment and social assistance programs have generated concern.

At 80 years old, Kathleen York remains active in the workforce as a contract industrial design consultant based in Illinois, yet she confronts mounting financial unease. Despite her continued employment, York has not seen a significant increase in pay since 2000. With no spouse or children, she channels efforts into an online business offering training videos, aiming to generate enough passive income to reduce her workload. The possibility of business failure stokes fears over losing her home.

Her daily routine includes spending approximately two hours job hunting, a task made more challenging by this year’s stagnant job market, which has been particularly unforgiving for older applicants. To stay competitive, York recently dedicated herself to learning fundamental artificial intelligence concepts and social media marketing techniques.

“I can't afford to hire anybody else. I can barely afford myself,” York explained, highlighting her resolve to maximize her skills and adapt as best she can in a challenging economic environment.

Throughout this year, Business Insider's "80-over-80" initiative has collected insights from over 250 Americans who continue working beyond their eightieth birthdays. The series explores their professional experiences, retirement strategies, living costs, healthcare access, and personal reflections. A significant number, even those with adequate savings, have articulated increased worries about their financial security compared to previous years or their entire working lives.

Several themes have emerged regarding the economic pressures faced by these older workers. Inflation paired with tariff-related uncertainties prompted many to temporarily reduce expenditures, including essentials like groceries. Moreover, reports of staffing cuts at the Social Security Administration contributed to fears about the reliability of benefit payments. In some states, reductions in Medicaid funding added to the anxiety. The cumulative effect of these factors, combined with a more competitive and difficult job market, has complicated employment opportunities for senior workers.

Participants expressed a sense of being overlooked in policy-making during the year, noting that while some programs resumed activity, federal funding delays impacted services such as the Senior Community Service Employment Program, which experienced interruptions starting in July. These developments heightened awareness about the insufficiency of financial resources allocated for vulnerable older adults.

“We put our elders out faster just because they're elderly, which is just a tragedy,” said Joyce Johnson, 80, who provides visitor services at the Indiana State Museum. “I regret that people are expected to retire and are no longer considered useful.”

Extending their careers has become common as Americans live longer, yet many harbor fears that their accumulated savings will not sustain them through the next decade. Some reported returning to work after retiring once, primarily to bolster their financial security.

Despite stock market highs, confidence in the broader economy among older Americans remains low, mirroring historically diminished consumer sentiment. Essential goods and services frequently used by this group, such as healthcare, insurance, and home maintenance, have seen price increases outpacing overall inflation rates, according to the Consumer Price Index. Such cost pressures have forced many to adjust their spending habits.

Dawn Carpenter, director of financial longevity at the Milken Institute, emphasized the necessity for the country to enhance support systems that provide foundational healthcare and financial stability. Doing so requires public investments to ensure people can experience a healthy and secure start to life.

Changes Within Social Security

Nearly all individuals aged in their late 60s and older collect Social Security benefits, which average around $2,000 per month. AARP statistics reveal about two-thirds depend on this income as a primary financial source.

The Social Security Administration (SSA) underwent reforms this year prompted by cost-cutting directives initiated during the previous administration. Consequently, numerous older Americans voiced concern about potential disruptions in benefit processing or challenges accessing service representatives.

Although benefits were maintained, clients reported heightened concern regarding timely payments, compounded by increased wait times on calls. An analysis by the Washington Post confirmed these longer delays earlier in the year.

Online SSA platforms experienced outages several times, which rendered some documents and metrics temporarily unavailable. In February, the agency planned to reduce staff by about 7,000 from its total 57,000 employees. These personnel cuts coincided with increased call volumes. The Department of Government Efficiency also identified closure or consolidation plans for 47 SSA offices.

Despite these difficulties, significant disruptions did not occur. SSA officials reported improvements, noting the average call answer time decreased from 28 minutes last year to 15 minutes this year, along with a 65% increase in callers served. Additionally, wait times at physical offices fell nearly 30%, and backlogs for initial disability claims diminished.

“Under President Trump's leadership, Commissioner Bisignano continues to transform SSA into a model of excellence – an organization that operates at peak efficiency, delivers world-class service to every American, and protects and strengthens Social Security for future generations,” stated an SSA spokesperson.

Some older adults expressed anxieties about the long-term viability of Social Security funds, which experts indicate may start to deplete around 2033, potentially reducing benefits by approximately 20%. To manage financial cushions, some began receiving benefits prior to the full retirement age, accepting smaller monthly payments for earlier access.

Concerns also surfaced regarding whether forthcoming cost-of-living adjustments (COLA) would sufficiently cover expenses. For 2025, benefits are projected to increase by roughly $60, equivalent to a 2.8% COLA. However, a few worry that such raises might inadvertently disqualify them from eligibility for assistance programs due to higher reported incomes.

Voices From the Front Line

Linda Kemp, 84, residing in Florida, receives about $600 monthly from Social Security since caregiving duties for her seven children curtailed traditional employment opportunities. Living in a home owned by her son, Kemp uses her Social Security income and remuneration from working at her son’s law firm to cover utilities.

“Social Security isn't, and likely will never be, enough for me to live on,” Kemp remarked. “I don't know what the options are for my future, and I have to figure it out. At 84, I'm slowing down and don't have all the energy I used to have.”

Medicaid and Medicare Adjustments Heighten Concerns

Medicare and Medicaid represent vital supports for many seniors, particularly the approximately 45% of elderly households with minimal savings. Yet, recent policy shifts have escalated concerns among recipients.

Medicaid plays a crucial role in offering long-term care services to millions of lower-income older Americans. The One Big Beautiful Bill Act proposes cuts of about $911 billion to Medicaid over the next decade, imposing new work requirements on adults under 65 — a group some needing long-term care support falls within.

Eligibility for Medicaid for adults over 65 is contingent on limited assets and income, but accessing benefits can be fraught with difficult trade-offs. Mo Wang, a distinguished professor at the University of Florida's Warrington College of Business, described the situation as demoralizing. Individuals with financial means must expend it on expensive long-term care, while those without adequate funds may endure lower life quality or be admitted to government-run facilities.

The potential reduction in benefits threatens over 7 million low-income older Americans, possibly increasing burdens related to nursing home care and out-of-pocket medical costs.

Medicare costs are also set to rise. The Medicare Part B premium is expected to increase nearly 10%, reaching $203 per month next year, which will reduce the net income from Social Security.

“When you get Social Security, they give you a 3% raise, and then Medicare takes a good portion of that because Medicare rates also increase,” explained Vince Scidone, 91. “That 3% is not really a 3% raise.”

Challenges in the Job Market for Seniors

The number of workers aged 80 and older represents the fastest-growing segment in the labor force, with nearly 550,000 participating part-time or more.

This year’s employment landscape has felt particularly impenetrable to many seniors seeking work. Employment growth slowed, while unemployment rates increased beyond 4%. Some sectors, including healthcare, expanded, but many industries saw minimal hiring and avoided large layoffs.

Older job seekers frequently reported that available roles were lower-paying, lacked flexibility, or were physically demanding. Securing positions comparable to peak-career salaries proved rare, prompting some to pursue entrepreneurship or gig work. Many noted that age discrimination seemed more prevalent this year.

An additional concern has been the increasing demand for artificial intelligence skills. Some older adults reported job postings requiring AI proficiency, while others with relevant abilities suspected electronic screening filtered out their applications due to age-related biases.

Professor Peter Berg of Michigan State University suggests companies could enhance recruitment of older talent through flexible scheduling, hybrid work options, and intergenerational training, which may provide economic benefits over time.

Linda Styers, 83, who was laid off earlier this year from a contracting position at the Arizona Department of Economic Security, has struggled to find new work. Despite applying for lower-wage retail roles, her responses have been sparse and interviews infrequent. Although her savings cover current expenses, she seeks additional income for unforeseen costs.

Having adopted four grandchildren in her 60s and contributed significantly to their support, Styers expressed frustration with technological changes making job applications easier but less personal. “I guess I’ll just hope for the best,” she said.

Risks
  • Potential depletion of Social Security trust funds by 2033 could reduce benefits by about 20%.
  • Cuts to Medicaid funding may limit access to long-term care services for low-income older adults.
  • Rising Medicare premiums will further strain fixed incomes and reduce net Social Security benefits.
  • A competitive and technologically demanding job market may marginalize older job seekers lacking AI and digital skills.
  • Delays and staffing cuts at the Social Security Administration could disrupt benefit accessibility and customer service.
  • Inflation and rising living costs disproportionately impact older consumers, risking financial insecurity.
  • Policy changes and funding delays for senior programs decrease protections and support for vulnerable elderly populations.
  • Age-related bias in hiring processes may continue to hinder employment opportunities for seniors.
Disclosure
Education only / not financial advice
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