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Retirement in CanadaSome Trends…Some IssuesPresentation to John Deutsch Institute Conference on
Retirement Policy Issues in Canada
Cliff Halliwell, Director General Policy Research
Human Resources and Social Development Canada
2
Outline
Defining retirement Overview of retirement trends in Canada Review of current work and retirement
propensities by age in Canada Some policy issues this can raise
3
Defining Retirement
What is it? Reaching 65? Ending a career job? Receiving pension income? Not working any more at all?
4
Definition? Not Receiving Labour Income?
0
5
10
15
20
25
30
35
40
16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79Age
Average Wage and Salary Income by Age, 2004thousands per [rec ipient, or capita?]
5
Definition? Receiving Pension Income?
0
5
10
15
20
25
30
35
40
16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79Age
Average Pension Income by Age, 2004thousands per [rec ipient, or capita?]
6
Definition? Receiving Pension Income?
0
5
10
15
20
25
30
35
40
16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79Age
Average Labour & Pension Income by Age, 2004thousands per [rec ipient, or capita?]
7
Definition? A gradual transition for many?
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Other
Retirement
Bridge employment
Career employment
Labour Market Status of Older (50-69) Peopleper cent
8
Definition? Left Job for Retirement?
LFS asks the reason a respondent left a job Retirement is one option
But, this ‘self report’ misses retirement that leads to subsequent (‘bridge’) employment
And, it misses other separations that eventually lead to retirement
9
Definition? Left Job for Retirement?
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006
Other job separations
Retirements
Reason for Leaving or Losing J ob: Aged 55 & Overper cent
Source: Labour Force Survey
10
Definition? Stopped Working Permanently?
LAD enables us to track people and their income sources
So we can see if retirement leads to permanent withdrawal from the labour force
For COPS we created a retirement measure which is: left labour force and had no labour income (>$500) for the next three years
11
Definition? Stopped Working Permanently?
55
57
59
61
63
65
67
1982 1985 1988 1991 1994 1997 2000 2003 2006
Median Retirement Ageyears
Labour Force Survey
Longitudinal Administrative Database
12
Trends? Retirement Rates
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
50 53 56 59 62 65 68 71 74
1999-2001
1990-1992
1982-1984
Retirement Rates (LAD-based) by Ageper cent
13
Profile? What People Do
0
100
200
300
400
500
600
0 4 8 12 16 20 24 28 32 36 40 44 48 52 56 60 64 68 72 76 80 84 88Age
Employment
Labour Force
Source Population
Total Population
Population by Age: Total (2006)thousands
14
Profile? What People Do
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0 4 8 12 16 20 24 28 32 36 40 44 48 52 56 60 64 68 72 76 80 84 88Age
Partic ipation RateEmpl/Pop Ratio
Partic ipation and Employment Rates by Age (2006)per cent
15
Profile? What People Do
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
15 19 23 27 31 35 39 43 47 51 55 59 63 67 71 75 79 83Age
1991 19962001 2006
Employment Rates by Age: Totalper cent
16
Profile? What People Do
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
15 19 23 27 31 35 39 43 47 51 55 59 63 67 71 75 79 83Age
1991 19962001 2006
Employment Rates by Age: Womenper cent
17
Trends? Median Retirement Ages
55
57
59
61
63
65
67
1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006
Median Retirement Ages (LFS)years
Self Employed (inc l. Family)
P rivate Sec tor
Public Sec tor
18
Profile? What People Do
0
5
10
15
20
25
30
35
40
45
50
Career employment Bridge employment Retirement
OAS/GIS benefits
CPP /QPP benefits
Government transfers
P rivate pension benefits
Earnings
Sources of Income - Aged 55 to 69 (2004)per cent of worker category
Earnings
Private
Pensions
Gov't T ransfers
CPP /QPPOAS/GISGov't T ransfers
19
Issues? Work Flexibility
0%
10%
20%
30%
40%
50%
60%
70%
0-10 hrs 11-24 hrs 25-39 hrs 40+ hrs
Career employment
Bridge employment
Weekly Hours of Work for 50-69 Y ear Olds (2004)
Workersper cent of worker category
Note: Is average hours worked per week per annum
20
Issues? Work Flexibility
0
10
20
30
40
50
60
70
80
90
100
15 to
19
20 to
24
25 to
29
30 to
34
35 to
39
40 to
44
45 to
49
50 to
54
55 to
59
60 to
64
65 to
69
70+
Part-time
Full-time
Full- and Part-time Work by Age Group (2006)per cent
21
Issues? Work Flexibility
0
10
20
30
40
50
60
70
80
90
100
15 to
19
20 to
24
25 to
29
30 to
34
35 to
39
40 to
44
45 to
49
50 to
54
55 to
59
60 to
64
65 to
69
70+
Couldnt find FT /didnt
Couldnt find FT /looked
Personal preference
Going to school
Other personal/family
Care for own children
Own illness/disability
Other reasons
Reasons for Part-time Work by Age (2006)per cent
22
Issues? Work FlexibilityA
gri
cu
ltu
re
Fo
res
t/F
ish
/Min
e/O
il&
Ga
s
Uti
liti
es
Co
ns
tru
cti
on
Ma
nu
fac
ture
-du
rab
les
Ma
nu
fac
t n
on
-du
rab
les
Wh
ole
sa
le T
rad
e
Re
tail
Tra
de
Tra
ns
po
rt/W
are
ho
us
ing
Fin
an
ce
/In
su
r/R
.Es
tate
&L
ea
Pro
f/S
cie
nt/
Te
ch
nic
al
Mn
gm
nt/
Ad
min
/Oth
er
Su
pp
ort
Ed
uc
ati
on
al
Se
rvic
es
He
alt
h C
are
/So
c A
ss
ist
Info
/Cu
ltu
re/R
ec
Ac
co
mm
/Fo
od
Se
rvic
es
Oth
er
Se
rvic
es
Pu
bli
c A
dm
inis
tra
tio
n
0
10
20
30
40
50
60
70
80
90
100
Part-time Work by Industry, Aged 50-59 (2006)per cent
23
Issues? Work FlexibilityS
r M
ng
mn
t O
cc
up
ati
on
sS
pe
cia
list
Ma
na
ge
rsM
ng
rs in
Re
tail/
Fo
od
Oth
er
Ma
na
ge
rs N
.E.C
.P
rof-
Bu
sin
es
s/F
ina
nc
eF
ina
nc
e/In
su
r A
dm
inS
ec
reta
rie
sA
dm
in/R
eg
ula
tory
Oc
cu
pC
leri
ca
l Su
pe
rvis
ors
Cle
ric
al O
cc
up
ati
on
sP
rof-
Na
tura
l/Ap
pl S
ci
Te
ch
Oc
c-N
at/
Ap
pl S
ci
Pro
fes
sio
na
l-H
ea
lth
Nu
rse
Su
pe
rvis
ors
/RN
sT
ec
hn
/Re
late
d-H
ea
lth
Su
pp
ort
He
alt
h S
erv
ice
sJ
ud
ge
s/L
aw
ye
rs/P
sy
ch
Te
ac
he
rs/P
rofe
ss
ors
Pa
rale
ga
ls/S
oc
Se
rvic
eP
rof-
Art
an
d C
ult
ure
Te
ch
Oc
cu
p-A
rt/C
ult
ure
Sa
les
/Se
rvic
e S
up
erv
Wh
ole
sa
le/T
ec
h/In
su
rR
eta
il &
Sa
les
Cle
rks
Ca
sh
iers
Ch
efs
an
d C
oo
ks
Fo
od
/Be
ve
rag
e S
erv
ice
Pro
tec
tiv
e S
erv
ice
sT
rav
el/A
cc
om
/Re
c/S
po
rtC
hild
ca
re/H
om
e S
up
po
rtS
ale
s/S
erv
ice
Oc
cu
pT
rad
es
/Tra
ns
po
rta
tio
nC
on
str
uc
tio
n T
rad
es
En
gin
ee
r/P
ow
er
Sta
tio
nM
ac
hin
ists
/Me
tal F
orm
Me
ch
an
ics
Oth
er
Tra
de
s N
.E.C
.H
ea
vy
Eq
uip
me
nt/
Cra
ne
Tra
ns
p E
qu
ip/O
pe
rato
rsT
rad
es
He
lp/C
on
str
uc
tA
gri
c, e
xc
l La
bo
ure
rsF
ore
str
y/M
ine
/Oil/
Ga
sP
rim
Pro
du
c L
ab
ou
rers
Su
pe
r in
Ma
nu
fac
turi
ng
Ma
ch
ine
Op
s in
Ma
nu
fA
ss
em
ble
rs in
Ma
nu
fac
tL
ab
ou
rers
-Pro
c/M
an
uf
0
10
20
30
40
50
60
70
80
90
100
Part-time Work by Occupation, Aged 50-59 (2006)per cent
24
Issues? Work Flexibility
0
10
20
30
40
50
60
70
80
90
100
15
to
19
20
to
24
25
to
29
30
to
34
35
to
39
40
to
44
45
to
49
50
to
54
55
to
59
60
to
64
65
to
69
70+
Self Uninc . No Employees
Self Uninc . Employees
Self Inc . No Employees
Self Inc . Employees
Private sec tor
Public sec tor
Employment Status by Age (2006)per cent
Public Sec tor
P rivate Sec tor
Self Employed
25
Issues? Longevity
0
5
10
15
20
25
1961 1966 1971 1976 1981 1986 1991 1996 2001 2006
Men
Women
Life Expectancy at Age 65years
26
Issues? Longevity
55
60
65
70
75
80
85
1976 1981 1986 1991 1996 2001 2006
Remaining L ife Expectency
Median Retirement age
Retirement & Life Expectancy: Menage and years
27
Issues? Longevity
55
60
65
70
75
80
85
1976 1981 1986 1991 1996 2001 2006
Remaining L ife Expectency
Median Retirement age
Retirement & Life Expectancy: Womenage and years
28
The End
Acknowledgements:
Kevin Dunn (former HRSDC and now Finance Canada) for the LAD-based retirement rates and ages
Benoît-Paul Hébert and Mae Luong for the bridge employment analysis
