When Retirement Isn’t a Choice
Publication date: Oct 19JOB LOSS AND HIRING BARRIERS CAN END CAREERS EARLY
AI could compound age-related pressures through bias in hiring managers
Retirement does not always signal that someone is ready to stop working. Research shows that job displacement, hiring barriers, and a lack of suitable opportunities can push older Americans out of work earlier or more completely than they prefer, according to experts at global outplacement and executive coaching firm Challenger, Gray & Christmas.
The Federal Reserve’s latest household survey found that 11% of retirees said forced retirement or a lack of available work contributed to their retirement. Health problems, caregiving, or work-availability constraints influenced retirement timing for 46%, although these reasons overlap and should not all be attributed to employer pressure.
“Leaving a longtime employer does not necessarily mean someone wants to stop working,” said John Challenger, chief executive officer of Challenger, Gray & Christmas.
“For some people, retirement follows a job loss and a search that never produces another suitable opportunity. The concern is that a temporary separation becomes a permanent exit,” he added.
Job loss can derail retirement plans
A longitudinal study from Boston College’s Center for Retirement Research compared workers’ intended retirement timing with their subsequent experience. Using Health and Retirement Study data from 1992–2012, researchers found that losing a job without finding another was associated with a 27.6-percentage-point increase in the probability of retiring earlier than planned, after accounting for demographic and job characteristics.
Recent Bureau of Labor Statistics data show the difficulty older workers face after displacement. Among workers who lost jobs during 2023–2025 after at least three years with their employer, just 38.6% of those age 65 and older were reemployed in January 2026, compared with 57.3% of those ages 55–64 and 72.9% of those ages 25–54.
Nearly half, 48.9%, of displaced workers age 65 and older were outside the labor force. According to data from Organisation for Economic Co-operation and Development, 2025 saw the highest number of U.S. workers aged 65 and older who have been out of work for more than a year since 2021.
Pressure can begin before a job ends
According to AARP research published in January 2026, 22% of surveyed workers age 50-plus felt they were being pushed out of their jobs, while 64% had seen or experienced workplace age discrimination. One in five reported preferential access to training for younger employees.
This pressure can look like an explicit request to retire, a package offered as an alternative to termination, diminished responsibilities, exclusion from training, or repeated questions about retirement plans. After departure, unsuccessful applications and unsuitable offers can further narrow the path back to work.
Experimental evidence also shows that discouragement can operate indirectly. Research described by the Federal Reserve Bank of San Francisco in 2023 found that job advertisements containing subtle age-stereotyped language reduced the share of applicants over age 40 by 11.7 percentage points.
“An employee does not have to be told to leave to receive the message that the organization no longer sees a future for them. Those signals can come through assignments, development opportunities, and assumptions about who is ready to learn,” said Challenger.
AI could reinforce assumptions about age
As employers introduce artificial intelligence, assumptions about older workers’ technological capabilities could become another barrier.
In Generation’s 2024 research, conducted by YouGov, 90% of surveyed U.S. hiring managers said they would likely consider candidates under 35 for roles regularly using AI, compared with 32% for candidates over 60. The study focused on entry- and mid-level roles and measured stated preferences rather than actual hiring decisions.
Yet interest in learning is substantial. AARP’s March 2026 survey found that 49% of adults age 50-plus in the labor force were interested in learning more about using AI for work, while only 12% had taken work-related AI training or classes.
“The risk is that employers mistake limited exposure to AI for limited ability to learn it. If experienced workers are excluded from training and then judged unprepared for redesigned jobs, the process can reinforce the assumption it started with,” said Challenger.
Second chapters require opportunities
Retirement can also mean changing the balance of work and lifestyle. Second-chapter careers may combine long- and short-term assignments, part-time employment, consulting, and advisory work.
Research published in the American Economic Journal: Macroeconomics found that more than half of nonworking older respondents would accept a hypothetical job if they could choose their hours and receive their previous hourly wage. The sample consisted of Vanguard account holders who were healthier, wealthier, and more educated than the general population, so the finding should not be treated as a national estimate. It nevertheless demonstrates that leaving employment can coexist with a willingness to work under different conditions.
The Federal Reserve’s latest survey also found that 16% of self-described retirees had worked for pay in the previous month.
“Some people want to continue their careers. Others want a different mix of work, income, and personal time. Employers can retain access to that experience and institutional knowledge through flexible schedules, project assignments, and training that includes workers at every age. The objective should be to preserve people’s ability to choose their next chapter,” said Challenger.