How Delayed Retirement Can Affect Group Benefit Plans

How Delayed Retirement Can Affect Group Benefit Plans

The average Canadian employee’s work experience is changing as more people every year choose to delay retirement past the average retirement age of 65. The result is massive shifts in the status quo for workers. 

Workers now have less free time in their retirement ages but rise to senior positions and get more money in retirement for their efforts. But there have also been significant changes for employers as their employees choose to work longer, primarily in how they distribute group benefits packages.

Table of Contents

Why Workers Are Delaying Their Retirements

According to Statistics Canada, there were 128,000 more employees in the labour force in 2016 than in 2015 – the most significant such growth ever recorded. And yet, that once-unprecedented trend has become standard in recent years. 

But why are more employees choosing to delay retirement in the 21st century?

Increased Average Lifespan

Engaging Employment

What Changes When Your Employees Delay Retirement?

Your business will go through significant changes if employees choose to delay retirement, regardless of why they’re sticking around.

And while you’ll notice ripple effects across your daily operations, you’ll feel the most significant changes in what you pay for group benefits and what those benefits cover.

Increased Pressure for Health and Social Security Benefits

Shifts in the Cost of Retirement Benefits per Employee

Employees will Continue to Delay Retirement

Shifting to Phased Retirement Plans

Phased retirement is a way for employees 55 and older to shift slowly into retired life while still receiving benefits. They would remain in the active workforce and obtain your company’s group benefits, but they would pivot from full-time to part-time employment for a lower pay rate.

Phased retirement also allows employees to receive a financial supplement they can use to boost their retirement fund and help with medical expenses after they officially retire. In addition, employees can redeem that supplement before or after retiring. 

Many phased retirement options stipulate that the employee must set an official retirement date that they cannot change after both parties agree. Phased retirements are a compromise between the employer and employee that gives workers health benefits and financial incentives in exchange for less responsibility and quicker retirement. 

But whether you shift to phased retirement to offset some of the effects of the employee age boom or not, you’ll need a group benefits plan that fits your employees’ needs.


Group Enroll: Find New Group Benefits Options Today

If your employees are choosing to delay retirement and you need new insurance, there is no better place to look than Group Enroll. 

Group Enroll helps businesses find the perfect benefits package by comparing prices and coverage specifics from up to 10 different providers. You’ll receive a comprehensive list detailing everything you need to know about your new coverage within a few days. 

Get a quote from Group Enroll here or learn more about our services at Our office is at 10 Great Gulf Drive, Unit 5, Vaughan.