When faced with a shortfall in their RRSP or TFSA, a staggering number of Canadians default to a deceptively simple backup plan: “I’m behind on my savings, so I’ll just delay my retirement and work until I’m 70.”
On the surface, this feels like a highly responsible, proactive solution. It gives your existing investments more time to compound, eliminates years of drawing down on your capital, and keeps a steady stream of employment income flowing into your bank account.
It sounds flawless on a spreadsheet. But in the real world, relying on working longer as your primary retirement plan is an incredibly dangerous trap. Statistical reality tells a completely different story: the decision of when you get to retire is very often taken entirely out of your hands.
- The Health Reality
The single biggest flaw in the “work longer” strategy is the assumption that your body and mind will cooperate. According to historical data from Statistics Canada, nearly half of all Canadian retirees exit the workforce earlier than they had originally planned—and the number one driver is health.
A sudden injury, a chronic illness diagnosis, or cognitive decline can instantly end a career. Even if you work a low-stress desk job, the physical and mental toll of aging can make maintaining a full-time corporate schedule impossible.
- The Corporate Cliff and Ageism
Even if you possess pristine health and the desire to keep working, your employer might have a completely different plan for your future.
Ageism in the modern corporate world is a very real, undocumented hazard. When companies face economic downturns, restructuring, or a push toward technological automation, older employees with higher salaries are frequently the very first targets for layoffs or forced early retirement packages. Finding a comparable, high-paying role in your late 60s is an uphill battle that many Canadians fail to win.
- The Caregiver Toll
Sometimes, it isn’t your own health that derails your plans, but the health of those around you. A massive segment of pre-retirees are forced to unexpectedly leave the workforce to step into the role of a primary caregiver.
Whether it is caring for an aging parent who can no longer live independently, or supporting a spouse dealing with a severe medical crisis, the emotional and time demands of caregiving make holding down a standard job unfeasible.
The Bottom Line
Hoping to work until you are 70 is a wish, not a financial strategy. If your retirement security depends entirely on a continuous corporate paycheque deep into your senior years, you are exposed to risks you cannot control.
The smartest move you can make today is to build a robust, independent financial plan that allows early retirement to be a choice, protecting you from a forced exit from the workforce.