Did you know the average retirement age in Canada has been rising steadily for more than 20 years?1 Traditionally, retirement was viewed as a clear-cut transition from decades of work to complete leisure, often beginning at a fixed age and supported by pensions. However, this model has evolved significantly in recent decades.2 Longer life expectancies have extended the post-retirement period, prompting many older adults to seek purposeful engagement beyond traditional leisure. At the same time, economic pressures, such as the decline of traditional employer-sponsored pensions, have made traditional retirement financially unsustainable for many.2 Collectively, these factors have led to a reimagined retirement landscape that includes raising the age of retirement, phased retirement, flexible or part-time work arrangements, and volunteering, allowing individuals to transition gradually while maintaining both financial stability and personal fulfillment.
What the research tells us
Reimagining retirement could provide numerous benefits for older adults, including enhanced financial security, improved mental health, and a renewed sense of purpose. An evidence synthesis of 17 studies found that extending work life through a variety of approaches (particularly through part time work), may have benefits or at least a neutral effect for some. However, it may also have adverse effects on health for others in high demand or low reward jobs and could also potentially widen health inequalities between those who choose to reduce their working hours compared to those who need to continue working full time for financial reasons.3
Another evidence synthesis, focusing on the impacts of raising the retirement age, found that while raising the retirement age might increase labour force participation, it may also increase the poverty rate of unemployed or inactive people. Additionally, the effect of increasing the retirement age on health and wellbeing remains inconclusive.4 These studies suggest that while new trends in retirement can open up opportunities for continued involvement, renewed purpose, and wellbeing for some older adults, expectations of continued involvement in work can put further pressure on those who are most vulnerable.
Reimagining your retirement:
- Assess financial readiness: Evaluate long-term financial needs to determine whether flexible or part-time work is a feasible and sustainable option. Consider consulting with a financial advisor to explore options for supplementing income.
- Seek opportunities aligned with purpose: Identify part-time roles, consulting gigs, or volunteer commitments that align with personal interests and values to ensure a fulfilling experience.
- Advocate for workplace flexibility: Discuss phased retirement or other flexible arrangements with employers early in the planning process to tailor a transition that meets both personal and organizational needs.
- Stay informed about policy changes: Keep up with changes in retirement policies to make informed decisions about retirement timing and benefits.