Over 10% of retirees still working out of necessity: report

Hundreds of thousands of retirees are still apart of the workforce, according to a Statistics Canada report. The data revealed 13% of pensioners between the ages of 65 and 68 were still working, with another 5% working into their 70s.

“Those working by necessity represented 351,000 individuals,” the report said, per Blacklock's Reporter. Married men and renters with a high school education were the most likely retirees to continue working.

Analysts suggested there was a variety of reasons for retirees to continue working into their 60s.

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“Some find it necessary to keep working because of inadequate retirement savings, mortgage payments, unforeseen expenses or the responsibility to support children and other family members,” read the report, Employment By Choice And Necessity Among Canadian-Born And Immigrant Seniors.

Other factors included rising life expectancy and the shrinking share of physically intensive jobs. This, the report noted, means “seniors are one segment of the labour force for which increases in labour force participation rates are potentially feasible.”

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With more seniors staying in the workforce, the Canadian Federation of Independent Business (CFIB) called on the Trudeau Liberals to alter the Income Tax Act to accommodate pensioners who continue working. One change targeted by the CFIB called on the federal authorities the adjust non-refundable tax credits for those earning more than $39,826.

Instead of basing the number strictly on age, the CFIB suggested the government should base eligibility solely on age, “so that all seniors benefit equally and do not face any disincentives to work extra hours or earn extra income.”

Industry Minister François-Philippe Champagne agreed with the organization, writing in a July 2023 letter to the House of Commons how, “The tax system should not create undue barriers for seniors who wish to return or remain in the workforce.”