Retirement used to be a clearly defined milestone—one day you were working full time, and the next, you were officially “retired.” But times have changed. Today, many Canadians are rethinking what retirement looks like.

Instead of stopping work entirely, more people are opting for semi-retirement, flexible work arrangements, or turning passion projects into income streams. Whether it’s for financial reasons, personal fulfillment, or simply staying active and connected, this shift is redefining what it means to retire.

What exactly is semi-retirement?

Semi-retirement is exactly what it sounds like: continuing to work part-time or on a flexible basis after stepping away from a full-time career. For some, that means consulting in the same field they worked in. For others, it could mean launching a small business, volunteering, or picking up freelance or seasonal work.

This approach offers a balance between earning income and enjoying more personal time—without making a complete break from the working world.

Why are more Canadians choosing flexible retirement?

1. Staying active and engaged

Many people discover that full retirement isn’t quite what they imagined. After the initial freedom wears off, they miss the structure, the sense of purpose, or the daily social interaction.

Working part-time or exploring a new passion can help keep the mind sharp and spirits high.

2. Supplementing retirement income

Let’s face it—retirement isn’t cheap. With people living longer, a traditional retirement plan may not stretch as far as it used to.

Flexible work provides a financial cushion, allowing retirees to preserve their savings and maintain their lifestyle.

3. Turning passions into profits

Retirement is the perfect time to explore things you’ve always wanted to do—whether it’s painting, writing, woodworking or teaching.

Thanks to online platforms and the growing gig economy, many retirees are finding creative ways to turn their hobbies into small but meaningful sources of income.

4. More options than ever

Technology has opened up new possibilities for remote and flexible work. From consulting over Zoom to selling handmade goods online, retirees today have more opportunities than ever to design a work-life balance that suits them.

How to plan for semi-retirement

If the idea of semi-retirement appeals to you, here are a few things to consider:

• Start with your goals: What does your ideal retirement look like? How much income do you need to support that vision?
• Assess your finances: Speak with a financial planner or other licensed professional to ensure you understand how part-time income may affect your government benefits, taxes or pension plans.
• Update your insurance: Your life and health insurance needs may shift with your new lifestyle. The change in your employment may also affect whether you qualify for certain insurance products. To stay protected and ensure that your coverage continues to meet your current needs, it is important to consult a licensed insurance advisor.
• Stay flexible: The beauty of semi-retirement is that it can evolve. You might work more in the early years and taper off later—or vice versa.

Retirement doesn’t have to be an all-or-nothing decision. For many Canadians, semi-retirement offers the best of both worlds—continued purpose and connection, along with the freedom to enjoy life on your own terms.