The word retirement conjures images of sunny days spent with grandchildren or swinging clubs on a golf course.
Retirement looks different for everyone.
While many retirees return to work for fun and a sense of purpose, many have to because they’re unable to sustain themselves.
70-year-old James Kadri is a Canadian man working 3 jobs to prevent bankruptcy.
He has worked at a local grocery store for 35 years and has two part-time side jobs.
Kadri told CBC he is working out of necessity, not choice. His mortgage is the biggest financial hurdle that he is working towards overcoming.
And he is certainly not alone.
More than half of Canadians over the age of 60 and who are still in the workforce are there by necessity (Labour Force Survey from Statistics Canada in 2022).
In addition, fewer people aged 55-64 retired in 2022 than in 2021.
Essential expenses and pension ineligibility are the main reasons why Canadian seniors continue working.
Inflation and increasing costs of living are also significant factors.
“More and more people are having to go back to work because they just need the money.
They don’t have the income they need. People don’t have the retirement savings.
They don’t have the pension plans,” -Bill VanGorder, Canadian Association of Retired Persons COO.
Seniors are also carrying more debt later in life. The number of seniors with mortgage debt has almost doubled over the last few decades (Statistics Canada).
“Older people used to be debt-free by retirement back in the ’80s, early ’90s, and that’s no longer the case… It’s so much easier to borrow now.” —Giovanni Gallipoli, UBC Economist.
As we look ahead to the future, it’s critical to create a financial plan that accounts for your lifestyle, goals and the wider economic framework.
