Most Canadians in 1867 did not "retire".
Canada was then a largely pre-industrial, agricultural society. Most
people lived and worked on farms well into their old age. When they were
physically unable to work, they were supported by their families on the
farm.
Those without family support had few options. Many turned to local
charities or public "poor relief" for help. However, these forms of
assistance were often difficult to obtain. For example, unless they had a
medical certificate excusing them from work, recipients of public
assistance could be required to saw cordwood or break rock as a condition
for receiving help. Even then, many poor seniors had to beg for additional
help because the assistance they received was so minimal.
By the early 20th century, industrialization greatly changed
the Canadian way of life. Across Canada, the migration of people from
rural communities to cities and towns had a huge impact on the lives of
older people. Farm life and the family support system were dissolved, and
many elderly poor lived the rest of their lives in poorhouses.
Other industrialized countries became convinced that the elderly poor should
receive special assistance. Although Canadian social reformers called
for a national old age pension, in 1908 the Dominion government adopted
instead a program of Government Annuities.
The problem, however, was that few Canadians could afford to buy them.
What happened next?
Compare to today
Government
Annuities:
The Canadian Government Annuities Act of 1908
was one of the earliest significant pieces of social legislation in
Canada. Its purpose was to encourage Canadians to prepare financially for
their retirement through the purchase of a government annuity.
The Act allowed for the purchase of various annuities
for different amounts and lengths of time. At a specified age, the
recipient would begin to receive fixed yearly benefits. The government
guaranteed these benefits and assumed all the costs to administer
them.
The first annuities issued were to a married couple
from Quebec City.