Report urges support for older workers staying on the job

A new labour department report recommends policies to help older Canadians remain in the workforce, aligning with cabinet discussions on tax reforms for pension-age workers who choose to keep working.

“This report will guide our next steps,” wrote Labour Minister Steven MacKinnon, emphasizing that experts provided “invaluable advice” on the issue.

The document, Unions Power Prosperity: A Report From The Union Lead Advisory Table 2025, argues that older employees who wish to stay on the job should qualify for financial incentives.

It suggests targeted wage subsidies to encourage employers to hire and retain them. The report stresses the need for real choices, ensuring that workers under financial pressure are not forced into retirement unwillingly.

The advisory panel was chaired by Bea Bruske, president of the Canadian Labour Congress. The report noted that many Canadians wanting to retire early simply cannot afford to.

Panelists wrote that a lack of workplace pensions and insufficient personal savings prevent many from leaving the workforce with financial security. Public pensions alone, they warned, are often inadequate for a comfortable retirement.

A 2017 Statistics Canada study, Working Seniors In Canada, found that a fifth of 70-year-olds remained employed, often in roles like sales, retail management, and truck driving. The trend of older Canadians staying in the workforce has only grown in recent years.

Industry Minister François-Philippe Champagne, in a 2023 letter to the Commons industry committee, confirmed that tax reforms were under consideration to remove financial barriers for seniors who wish to keep working.

Cabinet, he said, supported efforts to encourage labor market participation among retirement-age workers.

Research by the Canadian Institute of Actuaries revealed that 69% of respondents planned to work longer than expected due to financial necessity.

The 2021 Retirement Risk Survey also found that 40% of non-retired Canadians were uncertain when they would retire, while 14% said they never expected to.

If savings ran out, 47% said they would return to work, while others considered selling their home (34%) or using funds meant for their children (16%).