New data from Statistics Canada shows 13% of Canadians over the age of 65 are still in the workforce because they have no other options, per Blacklock’s Reporter. Pensioners most likely to remain in the workforce were retail employees, typically married men and renters with a high school education.“Those working by necessity represented 351,000 individuals,” said a StatsCan report. Of pensioners 65 and older 13% continue to work to sustain themselves, and 5% of those over 70. The report comes following a recommendation that cabinet rewrite the Income Tax Act credits to recognize hundreds of thousands of Canadians who work past 65.“Seniors who worked by necessity earned lower wages and held jobs with lower skill requirements,” said the report, Employment By Choice And Necessity Among Canadian-Born And Immigrant Seniors. “Many seniors work past their mid-60s for various reasons,” it states.“Some find it necessary to keep working because of inadequate retirement savings, mortgage payments, unforeseen expenses or the responsibility to support children and other family members.”“In recent years the aging of the Canadian workforce has led to numerous discussions on how to increase Canada’s aggregate labour supply. As life expectancy rises and physically demanding jobs account for a smaller share of jobs than they did in the past, seniors are one segment of the labour force for which increases in labour force participation rates are potentially feasible.”A November 28 report by the Canadian Federation of Independent Business noted the Income Tax Act does not account for pensioners who remain on the job and recommended changes to claw-backs of non-refundable tax credits for pensioners who earn more than $39,826 a year.“Rather than basing eligibility for this credit on age and income the government could base it solely on age so that all seniors benefit equally and do not face any disincentives to work extra hours or earn extra income,” said the report, Unlocking Potential: Breaking Down Barriers To Work Across All Ages.“Canada’s population is experiencing the effects of aging with 18.5% of the population being 65 years or older in 2021. Projections indicate by 2068 this age group will comprise more than a quarter of the population. The trend will not subside any time soon.”Industry Minister François-Philippe Champagne in a letter last July 24 to the Commons Industry Committee agreed the Income Tax Act should “not create barriers to seniors who want to remain in the workforce.” Incentives would apply only to those who choose to stay on the job. “The tax system should not create undue barriers for seniors who wish to return or remain in the workforce,” wrote Champagne.
New data from Statistics Canada shows 13% of Canadians over the age of 65 are still in the workforce because they have no other options, per Blacklock’s Reporter. Pensioners most likely to remain in the workforce were retail employees, typically married men and renters with a high school education.“Those working by necessity represented 351,000 individuals,” said a StatsCan report. Of pensioners 65 and older 13% continue to work to sustain themselves, and 5% of those over 70. The report comes following a recommendation that cabinet rewrite the Income Tax Act credits to recognize hundreds of thousands of Canadians who work past 65.“Seniors who worked by necessity earned lower wages and held jobs with lower skill requirements,” said the report, Employment By Choice And Necessity Among Canadian-Born And Immigrant Seniors. “Many seniors work past their mid-60s for various reasons,” it states.“Some find it necessary to keep working because of inadequate retirement savings, mortgage payments, unforeseen expenses or the responsibility to support children and other family members.”“In recent years the aging of the Canadian workforce has led to numerous discussions on how to increase Canada’s aggregate labour supply. As life expectancy rises and physically demanding jobs account for a smaller share of jobs than they did in the past, seniors are one segment of the labour force for which increases in labour force participation rates are potentially feasible.”A November 28 report by the Canadian Federation of Independent Business noted the Income Tax Act does not account for pensioners who remain on the job and recommended changes to claw-backs of non-refundable tax credits for pensioners who earn more than $39,826 a year.“Rather than basing eligibility for this credit on age and income the government could base it solely on age so that all seniors benefit equally and do not face any disincentives to work extra hours or earn extra income,” said the report, Unlocking Potential: Breaking Down Barriers To Work Across All Ages.“Canada’s population is experiencing the effects of aging with 18.5% of the population being 65 years or older in 2021. Projections indicate by 2068 this age group will comprise more than a quarter of the population. The trend will not subside any time soon.”Industry Minister François-Philippe Champagne in a letter last July 24 to the Commons Industry Committee agreed the Income Tax Act should “not create barriers to seniors who want to remain in the workforce.” Incentives would apply only to those who choose to stay on the job. “The tax system should not create undue barriers for seniors who wish to return or remain in the workforce,” wrote Champagne.
