Existing well almost 40 years old. Recently started experiencing reduced pressure and cloudy water. Not sure if issue pump or well or broken line. Contacted plumber who suggested I contact well driller who troubleshoots pumps. Well contractor came, tested the Gould pump, and said indeed pump was having difficulty pulling water from the well, and the problem could be either the end of the well pump's lifetime (steel housing - installed in 1977) or a broken waterline.
In order to get second opinion, contacted another plumber who pressure checked the Gould and pulled water. Thought the pressure reading within an acceptable range although at the maximum level. Said he would check with his Gould expert and get back to me.

Over the course of the next several days the water spurting out of the faucets and the john became more forceful and continued to be cloudy. The plumber followed up and said the consensus was that the pump was struggling to pull water up and that the well equipment had probably reached the end of its functional life.

Decided to install new well - had to get lot cleared and fence removed which took place today. Contractors dug up fence posts obviously set in concrete, and after they left, noticed that water still cloudy (clears in about 20 sec) but running smoothly- no spurting.

What to do now? New well or not?

I confused. Did you sink a new well or did you just clear the area so a new well can be sunk?

Since you state that you already installed a new well and still have cloudy water it will take some time for the new well to settle down to where your new water will run clear.
Lots of luck with your new well.
Tom