Key Takeaways
- The U.S. workforce is aging: nearly one in four American workers is now age 55 or older, a share that has risen steadily as the population ages and more older workers delay retirement.
- For nonprofits, which often rely on experienced, credentialed staff, an aging workforce brings both an opportunity (deep institutional knowledge) and a challenge (creating room for younger employees to grow).
- Mentorship programs, upskilling, and structured knowledge transfer help nonprofits retain junior staff while making full use of experienced older workers.
- Older workers are more likely to use sick and other leave and can need longer recovery from injury, so clear, flexible leave policies double as a recruiting and retention advantage.
- Meaningful work and flexibility (flexible scheduling, remote or hybrid options, and part-time roles) rank among older workers’ top priorities, giving mission-driven nonprofits an edge even when they cannot match private-sector pay.
- Understanding these demographic shifts helps nonprofits plan recruiting, retention, and succession for the second half of 2026 and beyond.
Data overwhelmingly shows that the American workforce is getting older. Although the distribution and percentages will change depending on the location and industry, the overall trend is clear, and this means organizations of all sizes will have to adjust. Even for industries where the workforce skews younger than average, the effect is still noticeable, as it influences wages and general labor availability. As you set up plans for the second half of 2026 and beyond, it’s important to understand how an aging workforce might affect growth and resource allocation.
For a nonprofit world already working hard to hire and retain talent, an aging workforce can offer specific opportunities and challenges. Many nonprofit roles tend to favor higher educational attainment and, in some cases, extensive experience. Looking beyond your immediate needs, you’ll want to find a way to draw on this aging, educated, and experienced workforce without limiting opportunities for younger generations, who will at some point become the majority as older workers retire or step back from full-time nonprofit work. Striking this balance can be a challenge, but you can simplify it by thinking through how this workforce trend might affect your mission.
Here’s a deeper look at this trend and some of the issues organizations are already contending with:
Aging workforce statistics
Over the last 70-plus years, the U.S. population ages 55 to 64 has grown by about 220%, and the population 65 and older has increased by 457% (U.S. Bureau of Labor Statistics). There are many reasons for this, including better healthcare and workplace safety, which have extended working lives and capabilities, along with a declining birth rate that has reduced the number of young people entering the workforce. As a result, nearly a quarter of all workers are now over age 55 (NIOSH), and a growing number of older workers are choosing to delay or forgo retirement out of financial necessity or a desire to keep working.
Potential impacts of an aging nonprofit workforce
Each organization is different, but all are subject to broader trends in the labor market. Here are some of the ways older workers are shaping workplaces:
Balancing experience across generations
Because many nonprofits value organization-specific experience, some worry that when older workers extend their careers beyond age 65 and hold onto senior roles, it can limit advancement for younger staff. It is worth noting that broader research does not support the idea that older workers push younger workers out of the labor market as a general rule. Economists refer to that assumption as the “lump of labor” fallacy, and studies have generally found that the employment of older and younger workers tends to rise and fall together rather than one displacing the other (National Academies of Sciences, Engineering, and Medicine). Within a single organization or a narrow field, however, a limited number of senior openings can still slow advancement for newer employees.
For nonprofits that value experience in mission-driven work, it can help to ask staff whether they see room to grow their careers and skills. Even with a highly skilled and qualified older workforce, you can use mentorship programs, educational resources, and collaboration between senior and newer employees to help the latter build essential skills. This can reduce churn among junior staff, as they gain more opportunities to upskill and stay invested in the organization.
Paid leave and injury risks
Research indicates that sickness absence tends to increase with age, so older workers may be more likely to use paid sick leave and other forms of leave to get essential rest and care (systematic review, 2025). At the same time, it is a myth that older workers are more likely to be injured at work; in fact, they tend to have lower injury rates (NIOSH). What is true is that work-related injuries can be more serious for older workers and sometimes require longer recovery time.
This underscores the value of a clear and accessible leave policy that supports older workers. Generous leave policies and flexibility can also serve as a recruitment tool in an environment where a quarter of workers are over 55, helping nonprofits compete with private-sector firms that may offer higher salaries.
Unique motivations
Like any other age group, older workers have specific priorities when looking for work. Many are drawn to nonprofits because they place a high value on work that feels meaningful. One AARP survey found that roughly 90% of workers age 40 and older said a job must offer meaningful work before they would accept it, a priority that ranks alongside financial factors such as competitive pay and job stability.
The same research points to a high value placed on flexibility, with factors like an easy commute and flexible scheduling ranking as major considerations (AARP). For nonprofits, offering flexibility, remote work, or other options is a popular way to recruit and retain workers when they cannot always match the pay of other organizations. Many people past retirement age choose to work part time, which can be valuable for nonprofits that want to retain experienced workers while still creating space for younger employees to learn on the job.
Older workers also frequently value remote and hybrid arrangements, which can contribute to greater job satisfaction. Some observers suggest that access to remote work is one factor helping older workers stay in the labor force longer, since working from home can make continued employment more appealing than retirement.
Support your workforce now and in the future
Nonprofits look for every advantage they can find when recruiting and retaining talent. Understanding the shifting demographics of the available workforce helps them shape policies and recruitment efforts that appeal to experienced, qualified people, while also building the mentorship and training that carry knowledge to the next generation. As the makeup of the workforce continues to change, the organizations that plan ahead, supporting the needs of older workers while investing in their younger colleagues, will be the ones best positioned to sustain their mission for years to come.
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The information contained in this article is not a substitute for legal advice or counsel and has been pulled from multiple sources.
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