Returning for the right reasons

A couple of days ago, the OECD threatened that Canada's economy can't afford to see workers retire early. But today, Statistics Canada pointed out that the movement back to work has been in progress for over a decade:

According to a study released by Statistics Canada on Friday, 22 per cent of those who retired between 1992 and 2000 at the age of 50 or older went back to some form of paid work.

The study shows that retirees in good health who have the right kind of education and skills just can’t stay away. While the number one reason for returning was financial – 38 per cent of respondents said it was about the money – most had something else on their minds.

A full 22 per cent said they did not like retirement, 19 per cent said they were after “the intrinsic rewards offered by work,” such as challenging tasks, social contacts and sense of purpose. And 14 per cent said they were needed.

The OECD report contains some eminently sensible suggestions: that mandatory retirement ages be eliminated, that more training be available for older workers, and that workers be able to receive some pension funds while going back to work. But the OECD also suggests making retirement less comfortable by reducing RRSP incentives, which sounds like an awfully dangerous road to start down - effectively trying to reduce the economic well-being of older workers in order to create a need for employment. And judging from the StatsCan data, a good number of workers already lack the means to support themselves following retirement; there's little reason to think more people should be pushed into the same situation.

Fortunately, the StatsCan study suggests that a good number of workers end up going back for far better reasons. Having already spent enough time and effort at work to have earned their retirement, they still have a desire keep contributing. That, rather than economic need, is a reason for working past retirement age that we can all get behind. And we should be looking for every way possible to make sure that people in those circumstances don't face any barriers to working.