Cities Where 65+ Households Outearn Younger Households

Generally, households headed by 65 years and older people — most of whom are retirees — have lower incomes than households headed by younger workers. For example, the median income of 65+ households nationwide is $54,699, while the median income of households headed by 25 to 44 year olds is a much higher $83,505. This, however, is not true across the board, and there are some cities where older adult households outearn younger worker households.

To determine the cities where 65 and older citizens outearn younger workers, 24/7 Wall St. reviewed five-year data on age and employment status from the U.S. Census Bureau’s American Community Survey. Cities, towns and census-designated places were ranked based on the ratio of median household income for householders 65 years and over to the median household income for householders aged 25 to 44 years. Supplemental data on the percentage of the population that is 65 years and over is also from the 2022 ACS. Only cities, towns, and CDPs with at least 50,000 residents were considered.

While nationwide 65+ householders earn 35% less of the income earned by 25 to 44 householders, in the cities on the list, households with older adults earn between about 1% to 47% more than younger households. There could be several reasons for this, including older adults continuing to work past retirement age and earning higher wages. Indeed, in 15 of the 25 cities on the list, a higher percentage of the 65 and older population is in the workforce than the national average of 18.7%. (Also see, Cities Where the Most Seniors Are Still Working.)

There is an interesting mix of cities on the list. They include college towns, Florida retirement communities, and Midwest Rust Belt cities. It could be that in some of these cities, strong pension packages are helping boost incomes of the 65+ households. And of course, some retirement communities attract more affluent retirees. Although, notwithstanding retirement communities, the share of the 65+ population in the cities on the list tends to be smaller than the 16.5% share nationwide.

Why This Matters

There is a reason younger workers are encouraged to open retirement accounts and contribute to them regularly. Most such accounts come with some sort of tax benefits that help lower or defer taxes during the high earning years to retirement — when earnings are supposedly lower. But what if earnings during retirement are not necessarily lower? 24/7 Wall St. wanted to find whether there are any cities where such an outcome could be possible. Between possibly working in retirement, getting Social Security, and perhaps having a generous pension plan, income could indeed skew to the later years in some places.

• Median household income, 65 years and over: $46,803
• Median household income, 25 to 44 years: $46,409
• Pct. of 65 and over in the labor force: 19.9%
• Pct. population 65 years and over: 15.1%
• Total population: 67,993

• Median household income, 65 years and over: $53,438
• Median household income, 25 to 44 years: $52,955
• Pct. of 65 and over in the labor force: 15.4%
• Pct. population 65 years and over: 14.3%
• Total population: 79,166

• Median household income, 65 years and over: $68,238
• Median household income, 25 to 44 years: $67,470
• Pct. of 65 and over in the labor force: 16.3%
• Pct. population 65 years and over: 10.9%
• Total population: 56,789

• Median household income, 65 years and over: $63,059
• Median household income, 25 to 44 years: $61,947
• Pct. of 65 and over in the labor force: 20.8%
• Pct. population 65 years and over: 11.1%
• Total population: 88,628

• Median household income, 65 years and over: $75,888
• Median household income, 25 to 44 years: $74,267
• Pct. of 65 and over in the labor force: 17.2%
• Pct. population 65 years and over: 20.3%
• Total population: 78,144

• Median household income, 65 years and over: $52,256
• Median household income, 25 to 44 years: $51,130
• Pct. of 65 and over in the labor force: 22.0%
• Pct. population 65 years and over: 14.3%
• Total population: 225,500

• Median household income, 65 years and over: $42,234
• Median household income, 25 to 44 years: $41,210
• Pct. of 65 and over in the labor force: 16.2%
• Pct. population 65 years and over: 15.9%
• Total population: 58,599

• Median household income, 65 years and over: $61,179
• Median household income, 25 to 44 years: $59,004
• Pct. of 65 and over in the labor force: 22.6%
• Pct. population 65 years and over: 11.2%
• Total population: 198,259

• Median household income, 65 years and over: $161,932
• Median household income, 25 to 44 years: $155,458
• Pct. of 65 and over in the labor force: 31.7%
• Pct. population 65 years and over: 18.7%
• Total population: 66,316

• Median household income, 65 years and over: $103,115
• Median household income, 25 to 44 years: $98,824
• Pct. of 65 and over in the labor force: 17.6%
• Pct. population 65 years and over: 13.3%
• Total population: 67,203

• Median household income, 65 years and over: $56,411
• Median household income, 25 to 44 years: $53,624
• Pct. of 65 and over in the labor force: 20.9%
• Pct. population 65 years and over: 19.1%
• Total population: 53,265

• Median household income, 65 years and over: $50,164
• Median household income, 25 to 44 years: $47,203
• Pct. of 65 and over in the labor force: 14.7%
• Pct. population 65 years and over: 8.0%
• Total population: 63,132

• Median household income, 65 years and over: $66,619
• Median household income, 25 to 44 years: $60,875
• Pct. of 65 and over in the labor force: 20.2%
• Pct. population 65 years and over: 12.0%
• Total population: 58,557

• Median household income, 65 years and over: $75,884
• Median household income, 25 to 44 years: $69,146
• Pct. of 65 and over in the labor force: 20.8%
• Pct. population 65 years and over: 6.8%
• Total population: 120,451

• Median household income, 65 years and over: $70,608
• Median household income, 25 to 44 years: $63,462
• Pct. of 65 and over in the labor force: 24.1%
• Pct. population 65 years and over: 9.4%
• Total population: 54,287

• Median household income, 65 years and over: $70,816
• Median household income, 25 to 44 years: $63,577
• Pct. of 65 and over in the labor force: 19.0%
• Pct. population 65 years and over: 10.5%
• Total population: 66,265

• Median household income, 65 years and over: $61,163
• Median household income, 25 to 44 years: $54,511
• Pct. of 65 and over in the labor force: 13.5%
• Pct. population 65 years and over: 19.6%
• Total population: 69,311

• Median household income, 65 years and over: $36,474
• Median household income, 25 to 44 years: $31,361
• Pct. of 65 and over in the labor force: 20.7%
• Pct. population 65 years and over: 17.8%
• Total population: 60,048

• Median household income, 65 years and over: $86,110
• Median household income, 25 to 44 years: $73,796
• Pct. of 65 and over in the labor force: 14.0%
• Pct. population 65 years and over: 41.3%
• Total population: 53,945

• Median household income, 65 years and over: $68,795
• Median household income, 25 to 44 years: $58,646
• Pct. of 65 and over in the labor force: 20.2%
• Pct. population 65 years and over: 8.7%
• Total population: 76,660

• Median household income, 65 years and over: $68,005
• Median household income, 25 to 44 years: $57,018
• Pct. of 65 and over in the labor force: 27.7%
• Pct. population 65 years and over: 10.8%
• Total population: 54,358

• Median household income, 65 years and over: $36,988
• Median household income, 25 to 44 years: $30,240
• Pct. of 65 and over in the labor force: 13.9%
• Pct. population 65 years and over: 13.5%
• Total population: 81,863

• Median household income, 65 years and over: $70,041
• Median household income, 25 to 44 years: $52,632
• Pct. of 65 and over in the labor force: 23.4%
• Pct. population 65 years and over: 10.7%
• Total population: 79,006

• Median household income, 65 years and over: $40,752
• Median household income, 25 to 44 years: $30,616
• Pct. of 65 and over in the labor force: 13.3%
  
• Pct. population 65 years and over: 18.5%
• Total population: 69,136

• Median household income, 65 years and over: $112,328
• Median household income, 25 to 44 years: $76,328
• Pct. of 65 and over in the labor force: 21.6%
  
• Pct. population 65 years and over: 11.9%
• Total population: 58,919

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