A recent Statistics Canada’s Labour Force Survey finds workers with post-secondary educations are putting off retirement. While layoffs push down the aggregate numbers and prevent Stats Can from seeing the true picture, the data still show a gradual shift toward later retirement.
There are also eco-demographic factors in play. A generation ago, peak earning years were ages 30s to 40s. While Stats Can’s most recent data finds Canadians make their highest wages between the ages of 45 and 54. Peak earning years happen later in people’s careers – with workers in their 60s earning 30% more now compared to 1990.
Meaning those in their 50s to 60s are in an ideal position to maximize their retirement funding. If you are healthy, past age 65, you have nothing to lose and everything to gain by continuing to work. Plus, with growing numbers of older consumers increasing their debt loads and/or carrying mortgages, you may need the additional income.
In addition to the income, many older workers choose to remain in the workforce for personal gratification. Feeling at the top of their game, many see the post-50 work experience as a time to pass wisdom to a younger generation.
Many clients of mine are working past 65 due to a combination of financial need and the desire to keep busy and contribute to society. Plus, every year you work past age 65, your CCP entitlement increases by 8.4% per year plus additional contributions and your OAS entitlement increases by 7.2% a year.