Overview of the Aging Workforce Challenges: Analysis

Impacts on the Workforce

In 1999, the average age of retirement for Canada was 61.0 years. Two-thirds of Canadians retire before the full CPP/QPP age of 65
Between 1987 and 1990, 29% of people retired before the age of 60. Between 1997 and 2000, that rate grew to 43%
In 1999, early retirement was more common in public sector:
- 58.5 years, public sector
- 61.3 years, private sector
- 65.0 years, self-employed

Average age of retirement for men and women 1976-1999

Source: Statistics Canada, Labour Force Survey.

11.8% of population aged 65 to 69 were active in the labour force in 2001, i.e., were employed, self-employed or actively looking for employment. (Statistics Canada, "Labour Force Historical Review, 2001")
- 34.3% were women, 65.7% were men
In the last 25 years:
- The participation rate of men aged 65 to 69 decreased by 8.3 percentage points, from 24.4% to 16.1%
- The participation rate for women aged 65 to 69 remained stable at 7.8%
In the next 20 years:
- As women tend to live longer than men: 75.7 years for males, 81.4 years for females, the proportion of women relative to men is likely to grow

Some enjoy and find meaning in their work
Others do not have a private pension plan
Others do not have enough pensionable years accumulated to replace their earning income:
- Workers who worked for many employers
- Workers who have not been in the labour market for many years, for example, women who stayed at home to raise children; and/or women who entered late into the labour market, following a divorce or widowhood

Loss of older workers through retirement
Recruitment of younger workers more difficult, as employers are competing for a lower number of candidates
Retention of skilled workers a critical issue

Currently identified as a major problem by employers, this problem may intensify with the loss of experienced older workers and the difficulty in recruiting and retaining younger workers

Aging workers (45 years and over) may experience:
- Personal health problems
- Declining physical capabilities/energy levels
- Stress due to rapid changes in technology
Aging workers may have increased family care responsibilities:
- Support an elderly family member
Workplaces will increasingly need to provide a work environment/ workplace practices that accommodate these needs

Analysis