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This month’s significant number: 1/5 - InvestDfsi

This month’s significant number: 1/5

That’s the proportion of Canadians aged 55 and older who are currently active in the labour market but are due to retire in the near future. 

March 27, 2024

More than 4.5 million Canadians aged 55 and older are still working, and they make up almost 22% of Canada’s labour force. However, if recent trends are any indication, the number of people retiring each year from the final cohorts of the baby boom (the generation born between 1946 and 1966) should soon eclipse 400,000, i.e., one in five workers in this age group. This drain could exacerbate the labour shortage that has gripped the working world for the past few years. 

This finding comes from recent data compiled by Statistics Canada. Nonetheless, some figures leave room for hope that this trend could turn out to be somewhat weaker than anticipated. About half of the Canadians who are nearing retirement actually say that they would keep working if they could reduce their hours (55.1%) or take a part-time job without any impact on their pension (48.9%). 

If you’re wondering about your own options as you approach retirement, talk to your advisor.