New study shows more Quebecers are delaying retirement

A report by the Institut du Québec (IDQ) released on Wednesday, shows Quebecers are retiring later. Since 1998, the average retirement age has gradually increased to 64.5 in 2024 and is now approaching that of Ontario, which has an average of 65.1.

The report also shows there are more people aged 45 and over in the labour market than there were 40 years ago. They represent 42 per cent of workers, compared to 24 per cent in 1984.

“We often talk about the 40s as a moment where we have a lot of questions about our careers. Am I where I want it to be? Is it too late to change careers? But it’s also a moment where we start forming that decision about how long I need to stay at work and how long I want to stay at work,” said Emna Braham, the president and CEO of Institut du Québec (IDQ).

Quebecers’ growing debt directly influences their career choices, according to the study. The median debt of 45 to 54-year-olds tripled between 2005 and 2023. This situation forces many to work longer out of necessity.

“In the last few years, especially with labor shortages, with more Quebecois leaving for retirement than young people coming in, we’ve seen a lot of push to make sure that workers stay longer in the workforce,” said Braham.

Health also remains a determining factor in choosing to end a career. While retirements for health reasons have declined over the past 40 years (12 per cent today compared to 20 per cent in 1985), more than a quarter of retirees (26 per cent) still say that health problems prevented them from continuing their working lives.

Many Quebecers in their 40s and 50s also have a triple responsibility: raising their children, often later in life than before, caring for their aging parents, and advancing their careers. In fact, during the pandemic, nearly three times as many women as men aged 45 and over left their jobs for family reasons.

The average retirement age remains lower for women: on average, 18 months less than for men. Even more striking: 34 per cent of women aged 45 and over plan to leave the labour market before the age of 60, compared to only 22 per cent of men.

“Of course I’d like to retire as early as possible, but I think in general people, around 50, would be the best to continue – 50 to 60 I think would be the best,” said one Montrealer CityNews spoke to.

Another Montrealer saying, “Realistically, people should probably retire when they’re at least like 60.” Before adding, “If you’re still working at 65, if you’re still working at 70, I guarantee you at that point the economy is in a horrible place.”

While a third Montrealer said, “I think there’s a large majority of people who are having an easy time retiring but we’re facing an economic situation where the growing populace is definitely feeling the strain.”

The study finds that to address the challenge of an aging workforce; public policies and organizational practices must combine managing shortages with the professional fulfillment of workers of all ages.

“To meet this challenge, it is important to remember that the commitment of Quebecers at the end of their careers is based on concrete needs: stimulating projects, continuing education, and recognition of their value within organizations,” says Braham.

“When you see the revenues from the Riches des Rentres, Quebec, it’s about 28 per cent less than for men. So, there is a challenge in leaving earlier work for women. It’s also, it translates into their financial well-being later.”