US workers over 60 underestimate AI displacement risk despite extended workforce participation
While only 14% of those aged 60 and over fear artificial intelligence job loss, structural shifts mean many will work longer than planned, exposing them to high substitution risks in core skills.
Data from the Federal Reserve’s 2025 Economic Well-Being of U.S. Households report indicates a distinct generational divide in attitudes toward artificial intelligence. Workers aged 60 and over are the least concerned about job displacement, with only 14% expressing worry. This figure stands in sharp contrast to 24% of workers aged 30 to 44 and 23% of those aged 18 to 29. The lower anxiety among older cohorts is largely attributed to fewer remaining career years before reaching retirement age.
However, this complacency may mask significant financial vulnerability. A 2026 report from the U.S. Government Accountability Office (GAO) highlights that the proportion of older workers, defined as those aged 55 and up, in the workforce rose from 15% to 23% between 2003 and 2023. More than half of these older workers cited insufficient income, unmet retirement readiness, or the need to supplement Social Security benefits as primary reasons for continuing their employment.
The World Economic Forum’s 2025 Future of Jobs Report identifies AI and information processing as the top trends driving business transformation through 2030. The report notes a high capacity for generative AI to substitute human intelligence in skills such as reading, writing, mathematics, and attention to detail. Furthermore, 28.5% of the over 2,800 granular skills examined exhibit a moderate capacity for substitution, suggesting that displacement risks could increase as technology evolves.
Experts suggest that while jobs may evolve rather than disappear entirely, older adults who need to work longer face heightened exposure to these changes. Many older workers possess expertise in the very skills most susceptible to AI automation. The disconnect between low anxiety and high economic necessity creates a precarious environment for those who cannot afford to retire early or absorb sudden income shocks.
Preparing for this shift requires robust financial planning. With more older Americans remaining in or returning to the workforce, maintaining liquidity through emergency funds and contributing to retirement accounts remains critical. Diversifying portfolios with defensive assets and managing high-interest debt are also recommended strategies to mitigate the risks associated with AI-driven labour market volatility.
