May 4: BEST OF THE BLOGOSPHERE

May 4, 2026

Is retirement morphing into “rewirement?”

The traditional view of retirement – the gold watch at the end of a long career with one company, followed by travel, golf, and other leisure activities – may be changing, writes Alexandra Horwood for the Financial Post.

“For decades, retirement was seen as a reward for years of hard work. But for many Canadians today, the idea of stopping work at 65 is becoming less common,” she writes.

In fact, she continues, many of us are continuing to work beyond traditional retirement age.

“The share of Canadians aged 65 and older participating in the workforce has nearly doubled over the past few decades, reaching roughly 15 per cent in 2023, according to Statistics Canada’s Labour Force Survey. The trend reflects a clear shift in how Canadians are approaching retirement,” she explains.

So, her article continues, life in retirement may not be so much about separating oneself completely from work, but “how to step away from work without undermining your finances, health or sense of self,” she writes.

Why this change in our view of retirement? Horwood says that in the past, most people sailed into retirement debt-free, enjoying income for life from workplace pensions.

“That script,” she warns, “has become far less predictable.”

“Inflation has reshaped household budgets, and more Canadians are entering retirement with mortgages or other forms of debt. Some have never completed a financial plan for retirement and simply don’t know whether their savings are enough to step away with confidence,” Horwood notes.

Another complication, she notes, is helping out the kids.

“Housing affordability and education costs are prompting many parents to remain in the workforce longer to help adult children with down payments, private school tuition or child care for grandchildren,” she points out.

As well, her article tells us, there are people who – despite having sufficient savings – just don’t feel ready to say goodbye to working.

“For others, the decision to keep working has little to do with money. Work can offer structure, routine and social connection. For professionals whose identities have long been tied to their careers, stepping away can feel disorienting. In that sense, retirement is not only a financial shift, but a change in identity and lifestyle,” Horwood explains.

And here is a key takeaway from her article – maybe there doesn’t have to be a “hard stop” to working.

“If retirement is no longer tied to a fixed age, it also shouldn’t have to be a hard stop. Stepping away from full-time work is often better approached as a gradual transition. Instead of retirement, think of it as `rewirement,’” she writes.

“Rewirement,” she explains, might look like “scaling back responsibilities over time. That might mean consulting, contract work, board service or volunteer roles.”

The extra income can serve, she continues, as a “playcheque” to increase your income in your mid-60s and beyond, helping to pay for “travel, dining out, or discretionary spending.”

However, she warns, continuing to work after retirement can carry some hidden costs.

When you factor in income from the Canada Pension Plan, Old Age Security, and any registered savings you may have, the extra money you earn later in life can bump you into a higher tax bracket, Horwood notes.

You need, in advance of deciding to keep on working, to have a plan that “accounts for taxes, government benefits and required withdrawals. Without planning, additional income can dilute the very advantage it was meant to provide. These are decisions best considered years before retirement begins, not improvised once it is underway,” she tells us.

Retirement, she concludes, “is no longer a finish line… the goal is not to stop working at the `right’ age, but rather to build a life that continues to function, financially and personally, as work begins to change shape.”

Whether you decide to work into your 70s and beyond or not, you’ll still need retirement income. If you have a workplace retirement program of any kind, be sure to sign up and contribute as much as you can.

If you don’t have such a plan – either for yourself, or for the employees of your business – a great solution is the Saskatchewan Pension Plan. SPP is open to either individuals or employers (Pensions Plans for Businesses | Employee Pension Plans).

In either case, contributions made to SPP are professionally invested in our low-cost, pooled fund. That money is grown via prudent investment over time. When it is time to collect your savings as income, your options include the security of a lifetime monthly annuity payment, or the more flexible Variable Benefit.

Check out SPP today!

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Financial Post

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