Canada might soon wave goodbye to retirement at 65. A fresh report from the C.D. Howe Institute is pushing for the retirement age to creep up to 67, arguing it’s the fix for looming labour shortages and creaky pension systems. The Toronto-based think-tank says it’s time to sync up with global success stories—think longer careers, fatter savings, and a workforce that keeps humming.
“People are living a decade longer than they used to,” says Parisa Mahboubi, senior analyst at the institute. “We’ve got to rethink financial support for those extra years after retirement.” The idea? Gradually nudge the retirement age up to match today’s life expectancy and keep the economy rolling.
But not everyone’s cheering. “Push pensions later, and you’d better make sure folks with failing health aren’t left in the lurch,” warns Bill Vangorden, a seniors advocate. Jobs for older Canadians are already scarce—especially out east, where unemployment among seniors tops the charts.
The report’s got a game plan: flexible hours, part-time gigs, and self-employment options, especially in places like the Atlantic provinces where seniors are sitting on the sidelines. It also calls for a training boost—think digital skills and job-hunting know-how—to get older workers and underrepresented groups back in the game.
The numbers tell a story of their own. Canada’s labour force hit 22.1 million in 2024, up 1.9 million from 2019, thanks mostly to immigration. Newcomers drove 56% of that growth, with non-permanent residents chipping in 32%. But here’s the catch: the labour force participation rate (LFPR) is slipping, landing at 65.5% in 2024—below pre-pandemic highs despite the immigration boom.
Why the slide? Blame an aging population, fewer young workers jumping in, and a growing crowd of 55-plus Canadians stepping back. Participation nosedives after 54, and the report says it’s only getting worse. The fix? Tailored policies and training to keep older workers in the mix.
Love it or hate it, the debate’s heating up: can Canada afford to keep retirement at 65—or is 67 the new normal?