The Rise of ‘Unretirement’: Why More Canadians Are Returning to Work After Leaving It Behind
Marty Bryce’s story – a former litigator finding fulfillment teaching high school – isn’t unique. Across Canada, a growing number of retirees are dusting off their resumes and re-entering the workforce. This isn’t always about financial necessity; often, it’s a quest for purpose, social connection, and continued mental stimulation. But what’s driving this ‘unretirement’ trend, and what does it mean for the future of work and retirement planning?
The Financial Reality: Retirement Isn’t Always Affordable
The dream of a leisurely retirement is increasingly out of reach for many Canadians. Rising costs of living, coupled with insufficient savings, are forcing many to reconsider their post-career plans. BMO’s 2025 Retirement Survey revealed that 76% of Canadians worry they won’t have enough money in retirement, believing they need over $1.54 million to comfortably retire. StatCan data shows the median net worth for Canadians aged 55-64 was $873,400 in 2023, highlighting a significant gap.
This financial pressure is a primary driver of unretirement. However, it’s not solely about making ends meet. Many retirees find that simply having more disposable income allows them to enjoy their retirement *more* fully, funding travel, hobbies, or support for family.
Beyond Finances: The Search for Purpose and Wellbeing
While financial concerns are significant, the desire for purpose and social engagement is a powerful motivator. Research suggests that remaining active and engaged in meaningful work can have substantial health benefits, both physical and mental. A PsyPost analysis of studies found that returning to work can improve wellbeing, *depending on the job* – highlighting the importance of finding fulfilling roles.
Bryce’s experience exemplifies this. He found a deeper sense of satisfaction teaching teenagers than he ever did representing financial institutions. This shift reflects a broader trend: retirees are increasingly prioritizing fulfillment over purely financial rewards.
Changing Workplace Dynamics: Opportunities for Experienced Workers
The Canadian labour market is facing significant skills shortages in several sectors, creating opportunities for experienced workers. Healthcare, education, and skilled trades are particularly in demand. Employers are recognizing the value of seasoned professionals – their experience, reliability, and strong work ethic.
Pro Tip: Don’t underestimate the transferable skills you’ve gained throughout your career. Project management, communication, problem-solving – these are valuable assets in any industry.
Delaying CPP: Maximizing Your Retirement Income
Strategic planning around Canada Pension Plan (CPP) benefits can significantly impact retirement income. While the standard age to start receiving CPP is 65, individuals can delay benefits until age 70, resulting in a substantial increase in monthly payments. Continuing to work allows retirees to postpone CPP and potentially maximize their future benefits.
Furthermore, continuing to contribute to CPP while working after age 65 can boost your Post-Retirement Benefit (PRB), further increasing your pension amount. Understanding these options is crucial for effective retirement planning.
The Gender Divide in ‘Unretirement’
Research from Empower indicates a gendered pattern in unretirement. Men tend to return to roles leveraging their technical or managerial expertise, often in consulting or project-based work. Women, however, are more likely to seek positions aligned with their passions, such as teaching, volunteering, or roles in the arts and culture sector.
This difference may reflect societal expectations and career paths, but it underscores the importance of finding work that is personally meaningful, regardless of gender.
Future Trends: The Gig Economy and Flexible Work
The rise of the gig economy and remote work is likely to further fuel the unretirement trend. Flexible work arrangements allow retirees to contribute their skills and experience on a part-time or project basis, providing income and engagement without the commitment of a full-time job.
Did you know? The number of seniors (65+) participating in the gig economy has increased significantly in recent years, driven by platforms offering flexible work opportunities.
Navigating the Challenges of Re-Entry
Re-entering the workforce after a period of retirement isn’t without its challenges. Retirees may face ageism, need to update their skills, or adjust to new workplace technologies. Networking, professional development, and a willingness to learn are essential for a successful transition.
Frequently Asked Questions (FAQ)
- Is unretirement right for me? It depends on your financial situation, health, and personal goals. Consider what motivates you and whether you’re seeking income, purpose, or social connection.
- Will returning to work affect my CPP benefits? Not necessarily. You can delay taking CPP or continue contributing while working, potentially increasing your future benefits.
- What types of jobs are best suited for retirees? Roles that leverage your existing skills and experience, offer flexibility, and provide a sense of fulfillment.
- How can I update my skills? Online courses, workshops, and volunteer opportunities can help you stay current in your field.
The ‘unretirement’ trend is more than just a temporary economic phenomenon. It represents a fundamental shift in how Canadians view work, retirement, and the pursuit of a fulfilling life. As the population ages and the labour market evolves, we can expect to see even more individuals embracing the opportunity to redefine retirement on their own terms.
Ready to explore your options? Share your thoughts on unretirement in the comments below, or explore our other articles on retirement planning and financial wellbeing.
