Garry Marr: Bad News, Gen Z — The Freedom 55 Guy Is Still Working in His 60s and You Will Be, Too

Why It Matters

The trend forces employers, policymakers, and financial planners to redesign pension structures and workplace policies, impacting the broader economy.

Key Takeaways

• Gen Z targets retirement at 59, millennials at 61.
• Canadians start retirement savings around age 30.
• Experts propose raising normal retirement age to 67.
• Flexible work and micro‑retirements gaining popularity.
• Supplemental income needed as life expectancy rises.

Pulse Analysis

The conversation around retirement in Canada is being reshaped by a new CIBC‑Ipsos poll that reveals Generation Z plans to stop working at 59, with Millennials targeting 61 and Gen X at 61 as well. While baby boomers still cling to the traditional 65‑plus benchmark, the data underscores a generational desire for earlier financial independence. Yet the same survey shows Canadians begin saving for retirement only around age 30, highlighting a gap between aspiration and preparation. This mismatch is amplified by longer life expectancies—average Canadian lifespan has risen by nearly seven years since the 1980s—forcing many to reconsider the feasibility of early exit from the labour market.

Policymakers are responding to these demographic pressures. The C.D. Howe Institute recommends gradually lifting the normal retirement age from 65 to 67, while Denmark is already planning a phased increase to 70 by 2040. The Canada Pension Plan’s payout structure further incentivises delayed claiming, as benefits rise sharply between age 60 and 70. Such reforms aim to alleviate fiscal strain on the federal budget and sustain the pension system as the proportion of seniors grows. Private‑sector leaders, like Common Wealth Retirement’s Alex Mazer, are also urging tax incentives to spur employer‑sponsored pension plans, recognizing that many workers will need supplemental income beyond public benefits.

For individuals, the emerging model is a flexible, phased retirement rather than a single exit point. Alf Goodall’s post‑retirement venture into landscaping illustrates how entrepreneurship can provide both income and autonomy. Surveys show half of Canadians under 35 value flexible schedules, and 40 % are attracted to “micro‑retirements” that intersperse short career breaks with ongoing work. Financial planners therefore stress diversified savings, early compounding, and the use of tax‑sheltered accounts to build a buffer that supports intermittent work periods. As the labour market adapts, the ability to control one’s pace may become the defining feature of retirement in the coming decades.