Later retirement is a trend with legs. Low interest rates have squeezed returns from savings down to near zero, while encouraging people to amass debts they, in many cases, won’t have paid off by age 65. Weak returns from the Canadian stock market are another drag on retirement finances.
The federal government certainly wants you to work longer, thereby easing pressure on the CPP and OAS. Both programs now offer bigger payments if you delay collecting benefits for up to five years past age 65.
Mr. Vettese said the coming labour shortage offers hope to people who want to work in retirement, but adjustments will still be necessary. To stay cost-competitive in the eyes of employers, people past retirement age may need to accept lower pay and possibly reduced company benefits as well. On the other hand, they may benefit from more flexible hours and work arrangements. Such are the tradeoffs for people who want to work longer to fix the holes in their retirement savings.