Retirees Returning to the Workforce: Understanding Employment Trends and Debt

One third of Canadian retirees are in debt to the tune of $19,000, on average. In fact, more retirees are returning to the workforce to address these debt levels and improve standards of living later in life. Now more than ever, especially with interest rates on mortgages and tax debt rising, addressing debt management is an integral part of professional tax accounting and financial planning services.

A study by Statistics Canada outlines that more than half of workers aged 55 and older return to the workforce within a decade. In the same time period, 44 percent who retired from long-term employment lasting twelve years or more were re-employed. In the past decade, the number of Canadian workers over 65 has spiked more than 140 percent; the number of workers over 55 has surged 67 percent, to more than 3.7 million. The labour force participation rate (the number of people either working or seeking to work as a percentage of the population) for people over 65 has nearly doubled, to almost 14 percent, while participation in the 60-to-64 group has jumped 10 percentage points, to nearly 55 percent.

With so many retirees returning to the workforce, flexibility from employers is demanded; these workers seem to prefer part-time schedules, flexible hours, and self-employment opportunities.

“Knowledge Bureau is pleased to provide a professional training solution for retirees looking for self-employed career opportunities that are in demand and profitable, while offering the desired flexibility.” says Evelyn Jacks, President of Knowledge Bureau, “However, management of existing debt is still of great importance. For retirees, monthly debt payments must come from fixed pension earnings or from retirement savings, and that’s a problem for many. Implementing a comprehensive debt management plan with the help of a qualified tax or financial advisor is essential before individuals reach this stage of life.”

While retired Canadians hold less debt than those still working, they are also less likely to take steps to accelerate their debt repayment. Generating income while focusing on eliminating debt should be a priority.

Additional educational resources:

1. For comprehensive training opportunities to help retirees manage their debt loads before and during retirement, try our Debt and Cash Flow Management certificate course. A free trial is available.
2. Are you a retiree thinking about returning to the workforce? A career in the tax and financial services can offer the flexibility you’re looking for. Enroll in a Knowledge Bureau Designation before the June 15 tuition deadline.
3. Pick up your copy of Essential Tax Facts, by Evelyn Jacks, for guidelines on tax-efficient decisions at every life stage.

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