Working Longer, Living Better?

Seniors’ Income and Financial Security in Halton (2023)

Retirement has traditionally been viewed as a period of financial stability, supported by public pensions and personal savings. But recent trends suggest a more complex reality. Across Canada, more seniors are remaining in or returning to the workforce, a shift highlighted in Statistics Canada’s report¹ on rising labour force participation among older adults.

Using Statistics Canada’s 2023 T1FF (taxfiler data), this note examines the income sources of seniors (65 yrs+) in Halton to better understand three key questions:

• Are seniors better off financially?

• Why are more seniors working?

• Are public pensions sufficient to support a comfortable life?

A Diverse Income Picture Among Seniors

Seniors in Halton draw income from a mix of sources:

• Public pensions (27%): Old Age Security (OAS)/Net federal supplement and Canada/Quebec Pension Plan (CPP/QPP)

• Private pensions (32%): workplace pensions, RRSP withdrawals, and investment income

• Employment income (20%): wages, salaries, and self-employment

• Other incomes (21%): dividends/interest, other income

  
  

While public pensions form the foundation of retirement income, they are rarely the only source. Many seniors rely on a combination of income streams, reflecting different life courses, saving histories, and levels of financial security.

This diversity is important; average can mask significant differences between seniors who are financially secure and those who face ongoing economic pressure.

Are Seniors Better Off? A Mixed Story

At the high level, many seniors in Halton appear to have stable incomes, supported by a combination of public and private sources. However, a closer look suggests that financial well-being is unevenly distributed.

Some seniors benefit from: 

• Employer pensions and RRSP income

• Investment income (dividends and interest)

• Continued participation in the workforce

Others rely heavily on:

• OAS and CPP/QP

• Income-tested supports such as the Guaranteed Income Supplement (GIS) and spousal allowance, Ontario GAINS

• Benefits and credits such as the GST/HST credit, Ontario Trillium Benefits, Ontario Senior Homeowners’ Property Tax Grant

The presence at income-tested benefits alongside public pensions suggests that not all seniors are financially secure, even within a relatively affluent region like Halton.

Seniors with Employment Income

About 30% of seniors in Halton report employment income each year, a share that has remained relatively stable from 2018 to 2023 despite a noticeable dip during the COVID-19 pandemic (falling to 28.8% in 2020 before recovering to 30.6% in 2023).

While the number of seniors with employment income has increased over time reflecting overall population growth, this measure captures anyone reporting employment earnings during the year and is not equivalent to the labour force participation rates published by Statistics Canada. Even so, the persistence of this trend points to a growing normalization of work in later life.

When viewed alongside income data, it suggests a dual reality: for some seniors, employment income likely reflect choice, supporting active and flexible retirement lifestyle, while for others – particularly those with fewer private pensions or savings – it may reflect necessity, helping to supplement basic income and managing rising living costs. 

Choice or Necessity? Adding a Poverty Lens

While many seniors appear to engage in work to stay active and supplement income, poverty trends suggest that not all employment in later life is by choice. In Halton, the share of seniors with low income increased notably during the pandemic, from about 11-12% in 2018-2020 to 14.8% in 2021, before easing to 12.4% in 2023.

The situation is more pronounced among non-family persons (many of whom are seniors living alone), where close to 30% experience low income, consistently more than double the rate of seniors overall. 

This gap highlights a group with fewer financial buffers, such as shared household resources or private savings. When considered alongside the steady proportion of seniors reporting employment income, these patterns suggest a dual reality: while some seniors may work by choice, particularly those with pensions and assets, others, especially those facing financial vulnerability of living alone are more likely to rely on employment out of necessity to meet basic living costs. 

In 2023, over 4,000 seniors in Halton received social assistance benefits. The average was about $3,500.

Are Public Pensions Enough?

Canada’s public pension system – primarily OAS and CPP/QPP is designed to provide a base level of income in retirement. The T1FF data shows that these programs reach a large majority of seniors (87%) and form the core of retirement income.

However, the data also suggest that:

• Many seniors rely on additional income sources beyond public pensions

• A portion of seniors receive income-test supplements, indicating financial need

• Employment income remains an important component for a growing share of seniors

Taken together, this points to a key insight:

Public pensions provide a foundation but not always a complete solution for financial security. For many seniors a “comfortable” retirement depends on access to private savings, workplace pensions, or continued employment.

Unequal Aging: Work, Income and Gender

The experience of aging in Halton is not uniform, and differences in workforce attachment highlight important inequalities across both age and gender. In 2021, while about 33% of seniors overall report employment income, this share varies significantly: over half (52%) of men aged 65-74 report employment income, compared to 33% of women in the same age group. This gap persists across all age categories and widens with age by 85+, about 26% men still report employment income, compared to just 8% of women.

These patterns reflect broader lifetime inequalities in the labour market. Men are mor likely to have had continuous employment, higher earnings, and access to employer pensions, which may provide greater flexibility to work by choice in later life. In contrast, women who are more likely to have experienced career interruption, part-time work, or caregiving responsibilities may face lower retirement incomes and fewer financial resources.

At the same time, the sharp decline in employment income with age for both men and women point to health, caregiving, and mobility constraints, which limit the ability to work in later years. When combined with higher rates of low income among seniors living alone, particularly women, these patterns suggest that the ability to remain in the workforce and the reasons for doing so are unevenly distributed.

In this context “working longer” is not a universal experience but one shaped by gender, life course, and access to economic resources, reinforcing the need to understand aging as a diverse and unequal process. 

What This Means to Communities 

These findings have several implications for community planning and services in Halton:

• Income supports remain critical for a portion of seniors

• Employment programs for older adults may need to consider both opportunities and vulnerability

• Affordable housing and cost-of-living pressures remain central to senior well-being

• Community services must reflect the diversity of seniors’ financial situations

Understanding whether seniors working for choice of necessity is especially important for designing supportive and inclusive policies.

(1) Statistics Canada, A record number of Canadian seniors worked in 2025: Here are some reasons why, April 21, 2025, https://www.statcan.gc.ca/o1/en/plus/9132-record-number-canadian-seniors-worked-2025-here-are-some-reasons-why