Older Workers Have Left Workforce as Stock Wealth Grew

Rising equity portfolios have enabled many workers over 55 to retire earlier than they originally planned.

Updated on Oct. 7, 2026 in Employment

Older Workers Have Left Workforce as Stock Wealth Grew

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Does a strong stock market make you feel more confident about retiring earlier than you planned?

The total U.S. workforce shrunk to 170 million in September, down from a peak of 171 million in late 2025. This contraction is largely driven by older workers exiting the labor force as their investment portfolios have surged in value.

Why it matters

A significant rise in household stock wealth has provided financial support for many Americans to exit the labor market early. This shift has pushed the national labor force participation rate down to approximately 62%, remaining below pre-pandemic levels.

Americans 55 and older held $51.5 trillion in stock and mutual fund assets as of the second quarter of 2026, supported by a 140% gain in the S&P 500 since early 2020. Among early retirees, 42% report leaving the workforce sooner than expected.

The players

Allianz

A global financial services firm that tracks retirement trends and consumer financial behavior.

The details

Older workers account for the majority of the labor force decrease observed over the last six years. While participation among prime-age workers has risen slightly during this timeframe, the retirement of older cohorts remains the dominant driver of the shrinking total workforce. Many of these individuals have leveraged gains in their brokerage and retirement accounts to fund an early departure from employment, though 21% of early retirees note that job loss also contributed to their decision.

2020: Start of the S&P 500 bull market.
Late 2025: The U.S. workforce reached a peak size of 171 million.
Q2 2026: Older Americans held $51.5 trillion in stock and mutual fund assets.
September 2026: The U.S. workforce stood at 170 million with a 62% participation rate.

Money Landscape

The current decline in labor force participation tracks closely with the broad wealth gains seen throughout the recent bull market. This shift marks a notable departure from historical trends where older workers remained in the labor force for longer durations.

If you are planning your own exit from the workforce, review your brokerage statements and retirement projections to ensure your portfolio can support your timeline. Consult with a qualified financial professional to stress-test your wealth against potential market volatility before finalizing your retirement date.

The takeaway

Soaring stock market gains have allowed many Americans to accelerate their retirement, significantly altering the national labor supply. Consider scheduling a review of your retirement budget to confirm that your current savings trajectory matches your desired exit date.