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So the hiring managers were given a choice between a pool of 20 somethings desperate for their first job to pay for school and possibly move out, and a retired guy who doesn't have to work, and just wants something to do.

What would the moral choice be?

Sometimes the best person for an entry level position, is someone with an entry level skillset.

I would definitely hire a 20 something with little qualification over a seasoned engineer who could get a job easily paying several times as much in a heartbeat. Being overqualified is definitely a thing.
Yes, this is called ageism. You can try to justify it, but it is still called ageism.

One can probably try to justify other discriminations as well, it would still be racism or sexism ...