Insights on Canadian Society
Retirement and post-retirement employment among older Canadians

Overview of the study

Using data from the Labour Force Survey, this study presents trends in the number of retirements and summarizes the reasons for retirement. Additionally, it uses data from the Survey of Financial Security to document changes in post-retirement employment and to examine selected sociodemographic characteristics associated with working after retirement.

• The number of retirements (12-month average) in Canada increased from 183,900 in August 2012 to 276,800 in August 2025.
• In 2025, the main reason people cited for the timing of retirement was financial considerations, followed by their or their spouse’s health or disability issues.
• In 2023, 1 in 10 Canadians aged 55 and older who had retired in the past (10%) were working. This proportion was up from 7% in 2019. Men (12%) were more likely than women (9%) to work after retirement. Other characteristics associated with working after retirement included a higher level of family debt, a higher level of educational attainment and younger age.
• People working after retirement were mostly working part time (73%). Moreover, a notable proportion were self-employed (33%).

Introduction

Canada’s population continues to age, leading to an increase in the number of retirements and prompting shifts in the size and makeup of the labour force. These changes can affect the availability of skilled workers, influence hiring and training needs, and shape broader economic trends. While the past five years have seen rapid population growth driven by high levels of immigration, the influx in Canada’s population has slowed more recently. For example, the first quarter of 2025 saw the smallest growth in Canada’s population since the third quarter of 2020.^{Note 1} Consequently, attention has shifted back to Canada’s aging population and its downward pressure on labour supply.

In 2024, 19% of the Canadian population was aged 50 to 64, and another 19% was 65 and older. Retention of older workers is an important issue for policy makers and employers. A larger number of retirees can put a strain on social security; at the same time, employers may be increasingly concerned about knowledge transmission and skill shortages.

Returning to work after retirement is not uncommon. For example, based on a recent study using 2007 data, about 28% of retirees aged 50 and older in Canada had returned to work at some point after their retirement.^{Note 2} This proportion is similar for the United States based on data from 1992 to 2002.^{Note 3} Various reasons have been cited for this re-entry into the labour force, including financial factors, an improvement in health and a dislike of retirement.^{Note 4}

This article uses data from the Labour Force Survey (LFS) and its supplements and the Survey of Financial Security (SFS) to document retirement and work after retirement in Canada. LFS data are used to look at the number of retirements over time and the reasons for retirement. SFS data are used to study trends in work after retirement and its association with various personal characteristics, with a focus on family debt, assets and income.

Steep growth in retirements seen in 2022 and since May 2024

Based on LFS data, since August 2012, Canada has seen a notable increase in the number of people aged 55 to 80 who leave their job to retire (see Data sources and definitions). There was growth in the number of retirements among this age group from mid-2012 to mid-2015; however, from then until 2020, the number of retirements largely levelled off (Chart 1).

Since the start of 2020, there have been two notable decreases in the number of retirements. The first occurred from late 2020 to late 2021, coinciding with the COVID-19 pandemic. Some potential reasons for the decrease in retirements during this period may be financial concerns, work demands and practices, and the wish to maintain employment benefits.^{Note 5} The second decrease occurred from early 2023 to early 2024, which coincided with a period of economic uncertainty characterized by higher consumer prices and rising interest rates, factors that may affect the timing of retirement.^{Note 6} Both decreases in retirements were followed by periods of “catch-up,” suggesting many workers may have temporarily postponed their decision to retire. Moreover, the increases may be associated with economic recovery, demographic momentum and shifting priorities among workers.

While the aging of the baby boom population has contributed to the increasing number of retirements over the entire period, other factors may have had an impact on retirement trends. These factors include the rising share of the population who are immigrants, as well as changes in labour market conditions and in the financial circumstances of Canadian households.

Data table for Chart 1

Data table for Chart 1
Table summary
The information is grouped by Year and month (appearing as row headers), Retirements, calculated using number units of measure (appearing as column headers).

Year and month	Retirements
	number
Note: Because of rounding, estimates and percentages may differ slightly between different Statistics Canada products, such as analytical documents and data tables. Source: Statistics Canada, Labour Force Survey, custom tabulation, August 2012 to August 2025.
2012
August	183,900
September	186,000
October	188,300
November	190,000
December	191,800
2013
January	193,600
February	194,600
March	196,200
April	198,600
May	200,100
June	201,500
July	202,400
August	203,000
September	203,100
October	203,200
November	204,300
December	205,700
2014
January	206,800
February	209,300
March	211,000
April	211,800
May	213,500
June	214,900
July	216,700
August	218,900
September	221,400
October	224,000
November	226,100
December	229,000
2015
January	232,300
February	233,600
March	236,500
April	240,700
May	243,900
June	247,100
July	249,800
August	251,000
September	251,200
October	250,800
November	249,500
December	246,600
2016
January	245,900
February	245,900
March	244,900
April	243,600
May	242,900
June	240,600
July	239,400
August	239,700
September	240,900
October	242,300
November	244,200
December	246,400
2017
January	248,300
February	249,700
March	250,400
April	249,400
May	248,800
June	248,400
July	248,600
August	247,700
September	246,100
October	246,300
November	245,700
December	245,300
2018
January	243,500
February	242,100
March	241,000
April	241,900
May	242,600
June	244,700
July	243,600
August	244,300
September	246,200
October	248,000
November	249,300
December	251,000
2019
January	253,400
February	255,900
March	258,300
April	260,100
May	261,300
June	261,300
July	263,000
August	262,800
September	262,600
October	259,700
November	258,400
December	257,900
2020
January	257,200
February	256,100
March	257,100
April	256,200
May	256,200
June	254,800
July	251,900
August	251,000
September	250,800
October	251,700
November	250,600
December	247,100
2021
January	242,700
February	237,800
March	231,600
April	225,300
May	220,800
June	219,200
July	218,200
August	216,600
September	214,500
October	212,700
November	212,800
December	214,200
2022
January	217,400
February	221,400
March	226,000
April	232,200
May	237,400
June	242,900
July	249,300
August	255,600
September	260,400
October	264,700
November	268,300
December	271,900
2023
January	273,300
February	274,400
March	273,600
April	273,100
May	271,700
June	268,600
July	264,900
August	263,300
September	260,800
October	257,000
November	254,000
December	250,600
2024
January	248,600
February	246,400
March	246,600
April	245,700
May	246,000
June	247,000
July	249,400
August	250,500
September	251,200
October	254,500
November	258,600
December	262,300
2025
January	264,600
February	267,400
March	269,800
April	272,600
May	273,100
June	272,900
July	275,800
August	276,800

Financial considerations continue to shape retirement decisions, contributing to postponed retirements

In June 2023 and June 2025, the LFS included additional questions on retirement and factors influencing workers’ decisions to retire. Among those who reported being completely retired in June 2025, financial considerations remained the leading factor in determining the timing of retirement (Chart 2). It was also the leading factor in June 2023, highlighting the importance of income stability and financial preparedness in shaping retirement decisions. In June 2025, over one-third (37%) of men and close to one-third (32%) of women cited financial reasons^{Note 7} as the main factor in determining the timing of their retirement.

Health was the second most common consideration in the timing of retirement, reflecting how medical or disability-related concerns can influence these decisions. In June 2025, over one in five men (22%) and women (22%) who were completely retired cited reasons relating to their or their spouse’s health or disability issues as the main factor in determining the timing of their retirement.

Data table for Chart 2

Data table for Chart 2
Table summary
The information is grouped by Main reason (appearing as row headers), Women+ and Men+, calculated using percent units of measure (appearing as column headers).

Main reason	Women+	Men+
	percent
Notes: Given that the non-binary population is small, data aggregation to a two-category gender variable is sometimes necessary to protect the confidentiality of responses provided. In these cases, individuals in the category "non-binary persons" are distributed into the other two gender categories and are denoted by the "+" symbol. Because of rounding, estimates and percentages may differ slightly between different Statistics Canada products, such as analytical documents and data tables. Source: Statistics Canada, Labour Force Survey, custom tabulation, June 2025.
Financial considerations	32.1	37.2
Health or disability issues of self or spouse	22.3	22.0
Other factor	18.3	13.9
Layoff or other employer-related reason	9.2	12.4
Personal reasons	12.8	12.0
Agreement with spouse or partner	5.3	2.4

Financial considerations are also a leading factor in delaying retirement (Chart 3). In June 2025, financial reasons were associated with the latest average age at retirement (1.2 years later than the national average—61.1 years versus 59.9 years), followed by personal reasons (60.8 years) and layoffs (60.8 years). Health considerations were associated with the second-earliest average retirement age (58.2 years), after spouse or partner agreement to retire (55.7 years).

Data table for Chart 3

Data table for Chart 3
Table summary
The information is grouped by Main reason (appearing as row headers), 2023 and 2025, calculated using average age units of measure (appearing as column headers).

Main reason	2023	2025
	average age
Note: Because of rounding, estimates and percentages may differ slightly between different Statistics Canada products, such as analytical documents and data tables. Source: Statistics Canada, Labour Force Survey, custom tabulation, June 2023 and June 2025.
Agreement with spouse or partner	55.4	55.7
Health or disability issues of self or spouse	57.6	58.2
Other factor	58.6	59.5
Layoff or other employer-related reason	61.3	60.8
Personal reasons	60.7	60.8
Financial considerations	60.9	61.1

In 2023, 1 in 10 retired individuals were working

Based on data from the 2023 SFS, among individuals aged 55 and older, 59% had retired in the past—6% were currently working (i.e., working after retirement) and 53% were currently not working (see Data sources and definitions). More than one-third (37%) had never retired in the past, consisting of 29% who were currently working and 8% who were currently not working (e.g., the unemployed and discouraged workers).^{Note 8} The remainder (5%) had never worked.^{Note 9}

In 2023, among the 59% of Canadians who had retired in the past, 1 in 10 (10%) were working after retirement (Chart 4). This proportion was higher among men (12%) than women (9%). Post-retirement employment has been changing over time, first increasing slightly from 6% in 2005 to 7% in 2012. The growth from 2005 to 2012 was largely attributable to an increase among women. After remaining stable at 7% over the next seven years, post-retirement employment increased notably from 7% in 2019 to 10% in 2023. Similar rises were recorded among men and women and across all age groups. One reason for this increase may be financial pressures driven by rising consumer and housing prices, as well as higher interest rates and the associated higher levels of debt. Another factor may be the more widespread use of hybrid work arrangements.^{Note 10}

Data table for Chart 4

Data table for Chart 4
Table summary
This table displays the results of Data table for Chart 4 All, Men and Women, calculated using percent units of measure (appearing as column headers).

	All	Men	Women
	percent
Notes: The Survey of Financial Security is collected on an occasional basis, with the most recent waves (2005, 2012, 2016, 2019 and 2023) being used for this analysis. Given that the non-binary population is small, data aggregation to a two-category gender variable is sometimes necessary to protect the confidentiality of responses provided. In these cases, individuals in the category "non-binary persons" are distributed into the other two gender categories. Source: Statistics Canada, Survey of Financial Security, 2005, 2012, 2016, 2019 and 2023.
2005	5.6	8.5	3.1
2012	7.1	8.9	5.3
2016	6.6	8.1	5.3
2019	7.3	9.0	5.8
2023	10.3	12.3	8.6

To study the association between financial factors and working after retirement, three financial variables were considered: family debt, family assets and total family income other than personal employment income. From a purely economic standpoint, it may be expected that working after retirement would be associated with a higher level of debt, lower level of assets and lower level of income from sources other than employment.

Among individuals aged 55 and older, 16% of those with family debt greater than $40,000 worked after retirement, compared with 7% of those who did not have any debt.^{Note 11} This indicates that having more financial obligations is associated with a greater likelihood of working after retirement (Table 1).^{Note 12} By contrast, lower levels of assets were not associated with a higher likelihood of working past retirement. Instead, those with more assets were more likely to be working. These workers may be more likely to continue to work by choice. This was also true to some extent for family income other than personal employment income.

Other than financial considerations, two other factors that are likely to be associated with working after retirement are age and level of education. Attributable in part to the decreasing likelihood of being in good health and having financial obligations, the likelihood of working after retirement is expected to decline with age. One in four individuals aged 55 to 59 (25%) were working after retirement, compared with less than 1 in 10 (8%) of those aged 65 and older. Meanwhile, a higher level of education is expected to increase the likelihood of working after retirement. Individuals with higher levels of education are more likely to work in occupations that are less physically demanding, and hence it is easier for them to continue working into older ages. Also, they are more likely to be able to negotiate flexible and consulting jobs.^{Note 13} Indeed, people with a university degree were three times as likely to work after retirement as those without a high school diploma (15% versus 5%, respectively).

Given that certain characteristics are likely to be correlated with each other, a series of regressions was used to understand these relationships.

First, the association between working after retirement and family debt, family assets and family income other than personal employment income was determined. The results showed that higher levels of debt and assets were associated with a higher probability of working (Table 1, Model 1). Income did not have a statistically significant association with working in retirement.

The association was then adjusted for age and educational attainment. As previously mentioned, older age was negatively associated with working after retirement, and higher educational attainment was positively associated with working after retirement (Table 1, Model 2). When these characteristics were also considered in the regression, the association between the level of debt and the likelihood of working after retirement was unchanged. However, the association between the level of assets and the likelihood of post-retirement employment was no longer statistically significant.^{Note 14} In other words, those with a higher level of assets were not more likely to work after retirement compared with those with a lower level of assets.

Finally, additional characteristics such as employer pension plan, gender, marital status, immigrant status, racialized population and province of residence were taken into account (Table 1, Model 3). Men (12%) were more likely to be employed after retirement than women (9%). Individuals living in Prince Edward Island (17%), Quebec (12%), Manitoba (15%), Saskatchewan (12%) and British Columbia (12%) were more likely to work after retirement than those living in Ontario (9%). Adjusting for these characteristics did not change the conclusions about the association of working after retirement with debt, assets, income, age and education.^{Note 15}

Post-retirement employment is more likely to be part-time and involve self-employment

In 2023, almost three in four individuals working after retirement (73%) were employed part time (Table 2). This proportion was notably higher than among those who had never retired before (18%). Part-time work was similar among previously retired men (73%) and women (74%).

One in three individuals working after retirement (33%) was self-employed. Another 5% worked in a family business without pay.^{Note 16} The self-employment rate was lower among those who had never retired before (24%).

Conclusion

This study showed that there has been a notable increase in retirements in Canada, which is likely to affect the availability of skilled workers. Hence, retention of older workers is an important issue for policy makers and employers. Considering this, the study further looked at post-retirement employment and found that the proportion of individuals working after retirement increased from 2019 to 2023.

The study then analyzed personal characteristics associated with post-retirement employment. A higher level of family debt, a higher level of educational attainment and younger age were associated with working after retirement. Most of the work after retirement was part-time, and a notable proportion of individuals were self-employed.

Data sources and definitions

Data sources

This article is based on data from the Labour Force Survey (LFS) and its supplements and the Survey of Financial Security (SFS) on individuals aged 55 and older.

Definitions

Retirement: This variable is based on the LFS question on the main reason why someone left their job.

Working after retirement: This variable was created based on two questions in the SFS. The first question asked respondents aged 45 and older whether they had ever retired before. The second question asked whether they were currently working. If they answered “yes” to both questions, they were considered to be working after retirement.

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