• Canada's population is aging.
• The share of older workers is increasing.
• Working past retirement out of necessity, not by choice.
• How working past retirement affects CPP.
• Age-friendly Workspaces.
• Related videos and charts.

Canada's population is aging.

In 2020, 18% of Canada's population was 65 and older. This is projected to increase to 24% by the end of the 2030s.

The share of older workers is increasing.

The labour force participation rate of adults 65 and older doubled from 6% in 2000 to over 13% in 2020.

Several factors have contributed to the growing share of working older adults. Among them:

• Today's older adults have higher education levels than older workers in the past, and those with higher education are more likely to be employed.
• Older adults today are healthier and less likely to have a disability, allowing them to prolong their working lives.
• Employers have transitioned from offering defined benefits to contribution plans, which do not incentivize early retirement.
• Policy changes have discouraged early retirement. There is no longer an obligatory retirement age in Canada. Up until 2009, there was a mandated retirement age of 65 in Canada. However, the law changed in 2009 to prohibit mandatory retirement, allowing Canadians to work indefinitely.
• The nature of jobs has evolved. Recent research indicates that many occupations require less physical exertion, making them more "age-friendly."

Working past retirement out of necessity, not by choice.

More than half of Canadians still in the workforce past the age of 60 are there by necessity, not choice, according to a Labour Force Survey from Statistics Canada in 2022.

Essential expenses, mortgage debt, adult child financial support, and pension ineligibility are all reasons people continue working.

A recent report showed that 60% of older adults surveyed are providing financial support for their (non-student) adult children.  

How working past retirement affects CPP.

You can keep working while receiving the Canada Pension Plan (CPP). If you are between 60 and 65, you must continue contributing to the CPP.

Your CPP contributions will be used for post-retirement benefits, boosting your retirement income after you stop working.

At the age of 65, you have the option to stop making CPP contributions. If you continue making contributions at 65, your employer must also contribute. You must pay both the employee and employer portions if you're self-employed.

Age-friendly Workspaces

According to the Canada Statistics Survey of Older Workers, 47% would continue working part-time, 38% would continue if they could collect their pension and wage simultaneously, and 35% would continue if they could work from home.

To attract older workers, employers could consider the following strategies:

1. Compressed workweek with flexible hours - Employees work longer hours each day to make up the full weekly hours. For example, they might work four 10-hour days per week.
2. Job sharing - two people work part-time to fill one full-time position.
3. Work from home - or split time between home and office.
4. Project-based assignments - where the scope of employment is clearly defined and completed within a defined timeline. Depending on the project, it may involve full-time, part-time, or contractual employment.
5. Training - assisting older employees in acquiring the skills necessary to adapt to evolving workplace practices and technologies.
6. Succession planning - Your experienced employees know and understand your organization; finding ways for your older workers to share their knowledge and experience with their co-workers is beneficial.
7. Phased retirement - allows an employee approaching retirement to continue working but with a reduced workload that supports a transition from full-time employment to full-time retirement. Phased retirement can take various forms, including gradually reducing hours or days, part-time work, project work, and job-sharing.
8. Recalling retirees -  to assist during peak times. For example, some companies maintain regular contact with retirees and develop lists of retirees available for work.
9. Comprehensive benefit packages - older workers are more interested in health care insurance and extended benefits than their younger counterparts.
10. Safe Workspaces - many employers are examining ways to make workplaces safer for older workers.

From an employee's perspective, many older working Canadians do not find traditional retirement appealing. Many desire to work after the traditional retirement age and their reasons are not just financial.

From an employer's perspective, an employee's departure can lead to losing valuable knowledge, skills, and experience that may be challenging and expensive to replace.

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References:

Age-friendly workplaces: Promoting older worker participation
https://www.canada.ca/en/employment-social-development/corporate/seniors-forum-federal-provincial-territorial/older-worker-participation.html

The growth of the older workforce
https://www.pewresearch.org/social-trends/2023/12/14/the-growth-of-the-older-workforce/

Working while receiving a pension
https://www.canada.ca/en/financial-consumer-agency/services/retirement-planning/working-collecting-pension.html

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