As the population ages, an increasing number of older residents are working well past retirement age, often out of financial necessity rather than choice.
A recent analysis from The Pew Charitable Trusts shows that the number of US households ages 65 and older grew by nearly 33 percent from 2013 to 2023, compared with just 6 percent growth in the overall population. This dramatic increase has implications for local governments, particularly as more older residents struggle with limited income and poverty.
Pew examined Census Bureau data from 18 large US cities, including Baltimore, to better understand how aging populations are navigating income, work, and retirement. Nationally, the median income for older households was $56,000 in 2023, compared to $77,700 for all households. In jurisdictions examined by Pew, the gap was even wider, with older households earning a median of $51,000.
From the article:
Among older households, the three most common sources of income were earnings, Social Security benefits, and retirement funds—including IRAs, 401(k)s, and pensions.
Nearly nine in ten older households nationwide depend on Social Security, which averages $25,500 annually, barely above low-income thresholds in many urban areas. While more than half of older households receive retirement account or pension income, that share drops below 50 percent in the large jurisdictions analyzed.
Employment income is increasingly part of the picture as well. Labor force participation among older residents rose from 17.2 percent to 19.2 percent nationally over the last decade, and from 17.3 percent to 20.7 percent in cities researched by Pew, reflecting the growing number of seniors who continue to work into their later years.
With states’ older populations projected to continue growing, county services may increasingly be relied upon to support residents facing both economic strain and longer working years.
