More than half of Spaniards aged 60–64 are still working, highest rate in 50 years

Results from FUNCAS (Fundación de las Cajas de Ahorros) 2025 survey indicate that 53 per cent of Spaniards aged 60 to 64 were still in work, the highest proportion for that age group since at least 1970, according to a major labour study. The figure highlights how longer working lives and demographic change are reshaping Spain’s labour market.

The increase affects older workers, employers and policymakers across the country. It raising concerns now Spain’s population is ageing rapidly, and higher participation at older ages could have wide‑ranging economic and social implications for pensions, workforce planning and public services.

What has changed

In 2025, 53 per cent of people between the ages of 60 and 64 were in employment, marking the highest employment rate for that cohort in more than five decades. This rate has not been seen since 1970, when data show a similar level for men, although the overall working patterns were very different at that time. 

The figures come from the latest Nota de Coyuntura Social report by Funcas, the research foundation formerly linked to Spain’s savings banks, which analysed employment trends spanning several decades. 

The rising rate stands out for both sexes but is being driven especially by the growing number of women in work. In 2025, 48 per cent of women aged 60–64 were employed, a record high, while the employment rate for men in the same age group was 58 per cent. 

The study also finds that people aged 65 to 69 are participating in the labour market more than at any time since the early 1980s, although their employment rates remain lower than for those in their early 60s. 

Why employment for older workers is rising

Economists point to several key reasons behind the trend:

• Longer life expectancy and better health at older ages mean many workers are both willing and able to continue working beyond traditional retirement ages.
• Delayed retirement and pension reforms have increased the age at which workers become eligible for full pension benefits, encouraging longer working lives.
• Greater female labour force participation over the past decades has boosted employment rates among older women, who historically were much less likely to work.

Together, these factors have pushed up employment among people nearing retirement age, a change seen not just in Spain but across many European countries, though the scale and timing vary by nation. 

How this affects local communities

For older workers from larger cities the trend could mean longer careers and continued income, but it also raises questions about job quality, working conditions and opportunities for training and career progression later in life.

In rural areas and smaller towns, older workers may be more likely to remain in sectors such as agriculture, retail or family businesses, where experience and continuity are valued. However, regional differences in economic activity mean the impact is not uniform across Spain.

Employers, particularly in sectors facing labour shortages such as healthcare, transport and hospitality, may view increased participation among older workers as a potential solution to recruitment challenges. But this also creates pressure on workplaces to adapt roles and conditions to the needs of an older workforce.

What older workers and families should consider

For individuals approaching retirement age, the changing employment landscape presents both opportunities and challenges:

• Review retirement planning. Those choosing to work longer should understand how continued employment affects pension entitlements and benefits, including potential increases in future pension income.
• Consider training and skills development. Longer working lives may require new skills or updated qualifications, especially in sectors undergoing rapid technological change.
• Discuss flexible working options with employers. Part‑time roles, phased retirement or adapted duties can help balance health, lifestyle and work commitments.

Family members and carers should also be aware that older relatives may work later into life, which can affect caregiving plans, household finances and long‑term care arrangements.

Broader labour market context

The rising participation of older workers fits within a broader narrative of change in Spain’s job market. Overall employment levels in Spain have been growing in recent years, with unemployment rates trending downward and total employment reaching new highs. However, older worker participation stands out because it defies long‑held expectations about retirement ages and working lives. 

International comparisons show that many European Union countries are also experiencing rising labour force participation among older age groups, driven by similar demographic and policy factors. Spain’s record rate for those aged 60–64 highlights how sharply the domestic labour market is shifting.

What happens next

Analysts say the increase of older workers remaining in employment is likely to continue as demographic pressures mount and pension systems adjust to longer life expectancy. Policy discussions are already under way in government circles about how best to support older workers, including lifelong training programmes, flexible working arrangements and incentives to promote healthy ageing at work.

Spain’s labour market institutions, employers and social partners will be closely watching future data to see whether the record high employment rate in 2025 becomes the norm or if it signals a broader structural shift that will redefine retirement and work in the years ahead.