If you are 55 or older, you have probably noticed something: retirement does not look the same as it did for your parents. And you are not imagining it.
The numbers tell a clear story. In the late 1970s, the
average Canadian retired around age 65. By the late 1990s, that number had
dropped to about 61. But something happened along the way. The trend reversed.
In 2025, the average retirement age hit 65.4 years, 66.2 for men and 64.5 for
women.
So, what changed? And what does it mean for you? There is no
single reason. A few different forces are at work.
Women's working lives have changed. Today's older women have
spent much more of their lives in the workforce than previous generations. They
have stronger pensions, more career experience, and often coordinate their
retirement plans with their partners. That has shifted the average retirement
age upward.
There are fewer younger workers. With lower birth rates and
slower immigration, employers have fewer young people to hire. That means they
are hanging on to experienced older workers longer, and valuing the skills they bring.
Jobs are less physically demanding. Canada's economy has
shifted toward service, professional, and knowledge-based work. In many of
these jobs, experience and skill are assets that grow with age. You do not have
to retire just because your body is tired.
We are living longer and healthier lives. If you are in your
mid-60s today, you can expect another 20 to 30 years, most of them in decent health. That changes
the equation. Retirement is no longer a short breather before the end. It is a
long chapter, and many people want it to be meaningful.
Retirement is becoming a process, not an event. More and
more people are easing into retirement, working part-time, consulting, or
shifting to self-employment rather than stopping work altogether. It is less
"the day I left the office" and more "the years I figured out
what was next."
Attitudes have shifted. Mandatory retirement is mostly gone.
Employers and governments are paying more attention to age discrimination. That
does not mean it has disappeared, but it is harder to force someone out just
because of their age.
If you are 55 or older, these changes affect you in several
ways.
First, the financial system was built for a different world.
Most of Canada's retirement income programs were designed when retirement was
shorter, workplace pensions were more common, and very few people worked past
65. That world no longer exists.
Second, retirement is not one-size-fits-all. Some people
work longer because they want to, they
enjoy their work, find it meaningful, or want to stay engaged. Others work
longer because they have to, their
savings are not enough, and they need the income.
Third, there are quirks in the system that can discourage
you from working. For example, the Guaranteed Income Supplement (GIS) has
earnings rules that can penalize low-income seniors who continue to work. That
is something worth understanding if it applies to you.
The most important thing is to stay informed. Know what your
options are. Understand how CPP, OAS, and GIS work. Talk to a financial advisor
if you can. And do not assume that the retirement your parents had is the
retirement you will have.
The good news is that you have more choices than earlier
generations. You can work longer if you want to. You can ease into retirement
gradually. You can stay engaged in meaningful work, paid or unpaid.
But the system is not always friendly to those choices. So
pay attention, ask questions, and do not be afraid to advocate for yourself.
We are living longer. We are staying healthier. We are
working differently. These are good things,
but they also mean the old rules no longer apply.
Your retirement does not have to look like your parents'. It
should look like yours. And that means understanding the world as it is now,
not as it used to be.
This article is based on an analysis by Peter Hicks, a
policy adviser and former Assistant Deputy Minister with Social Development
Canada, and John Stapleton, Social Policy, Ageing and Well-being Policy Fellow
at the National Institute on Ageing. Their work highlights the need to rethink
Canada's retirement income system for a new era.
