Jul. 6: BEST OF THE BLOGOSPHERE

July 6, 2026

Several strategies can help those who won’t hit retirement “finish line” until after 65

Writing for CP24, certified financial planner and noted financial commentator Christopher Liew observes that a growing number of Canadians are finding that their working life will continue long past the traditional retirement age of 65.

“For decades, 65 was the finish line. You worked, you saved, you retired. But that script is quietly being rewritten across the country,” his article begins.

Citing data from Statistics Canada, he reports that “more Canadians than ever are staying on the job past 65. For some it’s a necessity, for others it’s a choice, but either way, the trend is here.”

As of 2025, he writes, 15.2 per cent of Canadians were still at work after age 65, according to Statistics Canada. That marks the fifth year in a row that the over-65 working cohort has increased in numbers, he adds, and means there are 1.2 million seniors still in the workforce.

And while the average retirement age was just 60.9 as recently as 1997, as of 2025 it has risen to 65.4 years, he adds. “Self-employed Canadians retire even later, at an average of 68.4,” he remarks.

So, he continues, if “done right,” working for a few extra years “can dramatically improve the rest of your life.”

What strategies should “delayed” retirees employ? Let’s read on.

Liew recommends that those working past 65 delay receiving the Canada Pension Plan (CPP) and Old Age Security (OAS).

“This is the single biggest lever most Canadians ignore. According to the Government of Canada, every month you delay your CPP retirement pension past the age 65 increases your payment by 0.7 per cent. Wait until 70 and you’ll get a permanent 42 per cent boost,” he reports.

It’s a similar story for OAS, he notes. “OAS works the same way, but at 0.6 per cent per month, for a maximum 36 per cent permanent increase at 70. If you’re working past 65 and don’t need the income yet, deferring is almost always worth a serious look,” he advises.

A second benefit of deferring OAS if you are still working is avoiding the OAS “recovery tax” or clawback, Liew notes.

“If you’re earning a good income past 65, taking OAS at the same time can backfire. For the July 2026 to June 2027 benefit year, OAS starts to claw back once your net income hits $93,454, and disappears entirely around $152,000 if you’re aged 65 to 74,” he warns.

A third strategy of working longer is continuing to build up your retirement savings via your registered retirement savings plan (RRSP) or Tax Free Savings Account (TFSA).

“Working longer means more contribution room and more time for tax-sheltered growth. You can keep contributing to your RRSP until Dec. 31 of the year you turn 71. And since your TFSA limit keeps accumulating regardless of work status, every extra year of earnings is a chance to top it up,” he writes.

“I’ve always thought this is one of the most underrated benefits of working past 65. A 67-year-old maxing out their TFSA and adding to a spousal RRSP can quietly add tens of thousands in tax-sheltered savings before they even start drawing down,” he explains.

Liew adds a couple of additional strategic thoughts.

Those who are 65 and older but still working can still claim the pension income tax credit “on up to $2,000 of eligible pension income, plus a matching provincial credit.” The “trick” is to make sure you are drawing at least that amount from a pension plan or registered retirement income fund (RRIF) withdrawal, he adds.

A last bit of advice is to “phase in” your retirement, rather than making a “hard switch” from working to not working.  

“A growing number of Canadians are moving to part-time work, consulting, or seasonal gigs in their late 60s. Wage growth for workers 55 and older actually outpaced every other age group in March 2026, at 5.2 per cent year-over-year, according to the Labour Force Survey. Older workers aren’t just hanging on, they’re being rewarded,” he concludes.

Members of the Saskatchewan Pension Plan have the option to defer converting their savings into retirement income until the age of 71.

Their contributions will continue to grow in SPP’s professionally managed, low-cost pooled fund. When it’s finally time to draw income from the account, options include the security of a lifetime monthly annuity payment or the flexibility of the Variable Benefit.

Check out SPP today!

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CP24

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