Research Brief No. 17 - Rethinking Retirement

Current pension policies in Canada do not take into account rising life expectancy. A Canadian worker in 1950 who retired at age 65 could expect to live 4 years in retirement. In 2006, a Canadian retiring at age 65 can now expect to have 16 years in retirement. Older workers can be a valuable resource with their years of experience that can be used to train younger replacement workers through the use of partial retirement schemes. Since many older workers would prefer to keep working after age 65, employers would benefit by offering flexible retirement schemes, such as a reduced work week. Age discrimination and rigid pension and retirement plans can force many older workers to stop working before they are ready. Public policy should make it easier for older workers to remain in the workforce, creating flexible policies that help workers at all ages to succeed