"Older Americans might plan to work but may not be able to do so," Watt said. "It is definitely tougher for seniors to become re-employed."
InLove struggled after losing a production job at $13 an hour with health insurance. ExperienceWorks, a national, community-based employment program for seniors, helped place him at the Lane County Historical Society and Museum, where he earns $9.27 an hour. He's on call after a three-month stint as an after-school-care assistant.
Rising Competition
"I'm worried," said InLove. "I rent, and couldn't move if I wanted to. There's so much competition. None of the part- time jobs offer health care or vacation."
Perry White, owner of Mr. Ribs BBQ in Kenosha, Wisconsin, packs boxes a few days a week at a nearby warehouse to supplement income. He found work through a unit of ManpowerGroup, a provider of temporary staff, which pays him $14.25 an hour.
"It's not stressful but it's hard work," said White, 64. "I tried retirement and found too much time on my hands. I'll work until I get tired."
Reasons to continue working longer, even as the economy improves, include shifts toward less physically demanding service jobs, contribution retirement plans instead of pensions, later eligibility for Social Security and rising health care costs, said Urban Institute's Johnson.
The population of those age 55 to 79 will expand by 26.9 percent between 2011 and 2020, compared with 2.3 percent growth for 25 to 54-year-olds, he said.
Employment Growth
"We've seen these things come to a head in the past decade," Johnson said. "Older workers are going to propel U.S. employment growth in the next few years."
Peter White, an 87-year-old financial adviser in Williamstown, Massachusetts, says he will work as long as his health permits. The retired Wall Street attorney has been driving to the Pittsfield office of Principal Financial Group Inc. three to four times a week for the past six years.