A Statistics Canada report revealed the majority of Canadians planning for retirement are willing to extend their work life provided they can work reduced hours and experience lower levels of stress.
The report released Aug. 1 suggests employers develop incentives to retain experienced workers as the Canadian population ages, the consequence of which can be skilled worker shortages.
“Increased labour force participation among older workers can help alleviate the impacts of population aging on the labour market,” the study said.
The June 2023 study revealed the patterns in retirement trends across different age groups. Among Canadians aged 55 to 59 years, just over one-fifth reported being either completely or partially retired. This proportion increased to 44.9 percent for those aged 60 to 64 years, and nearly doubled again to 80.5 percent for those aged 65 to 69 years. More than 90 percent of Canadians aged 70 and above have reported complete or partial retirement.
Among people who had not completely retired but were planning to retire, 55.1 percent said that they would continue working longer if they could work part-time, and nearly half said they would continue working if they could work fewer hours without affecting their pension.
Others said they would continue working if it were less stressful or physically demanding (43 percent) or if they had the opportunity to do more interesting work (37.6 percent). Another 34.2 percent cited pay or salary increases as motivation to continue working, and 29.3 percent would continue working if their health improved.
The timing of retirement was predominantly driven by two factors: financial and health considerations.
According to the study, among those fully retired, over one-third of men and more than a quarter of women cited financial reasons as the main factor. This group reported being financially prepared, qualifying for a pension, or choosing to defer the start of their Old Age Security pension as crucial factors influencing their retirement decision.
Almost a quarter of both men and women who were completely retired cited health or disability issues, either their own or their spouse’s, as the main factor. Those retiring for health reasons tended to do so at a younger age, with an average age of 58.5 years for men and 56.9 years for women, compared to 61.7 years and 60.1 years respectively for those retiring for financial reasons.
The survey showed that 55.4 percent of individuals who continued working after reaching the age of 60 did so because they needed to cover essential expenses, or because they were not yet eligible for a pension.
Among workers aged 60 and over with a high school education or less, continuing to work out of necessity was the most common reason at 59.8 percent.
In contrast, workers with at least a bachelor’s degree made up a little over half of those who continued to work by choice. Their reasons included paying for travel or other desirable items, or simply enjoying work and not being ready to retire.
