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Information identified as archived is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please " " to request a format other than those available. Full article in PDF format. Several studies show that many Canadians who 'retire' from employment often with a pension subsequently return to the labour market Singh and VermaPyper and GilesSchellenberg et al. If 'retirement' is the complete cessation of paid work, it is no longer clear when the process of retiring actually begins.

The length of this process can also vary substantially, and may involve either a gradual reduction in time spent working or exiting from, and returning to, the labour force one or more times prior to the complete cessation of paid work. Bridge employment can provide extra income for those who do not have enough pension income or savings in their later years. It can also help older workers balance work and leisure time while remaining engaged in economically and socially productive activities.

Bridge employment can therefore contribute to the well-being of individuals and their families. Many U. Given population aging and reduced labour force growth, understanding the transition to retirement becomes even more important. This study first presents cross-sectional analyses using the Survey of Labour and Income Dynamics to show the prevalence of bridge employment among Canadians age 50 to 69 between and Then, longitudinal examination of a group of older workers over the same period shows transitions into and out of bridge employment and retirement.

The study examines when individuals are more likely to enter bridge employment, who is more likely to choose bridge employment over retirement and how long those individuals typically remain in bridge employment, and the likelihood of entering bridge employment for those who retired see Data source and definitions.

Longitudinal analysis shows that the probability of remaining in a career job declines steadily as age increases Chart C. The estimated 'survival rate' Kaplan-Meier estimate between ages 52 and 66 for those in career employment at age 51 declined steadily up to age 59 with a sharper drop at age 60—the minimum age for early benefits under the Canada Pension Plan CPP and Quebec Pension Plan QPP. The conditional probability was higher for entering bridge employment than for entering retirement at each age the reverse is likely true past age 66, but the SLID data do not allow verification. Both probabilities increased at age In other words, the relatively few individuals still in career employment when they reached age 65 were very likely to transition in that year.

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Conditional probabilities indicate when transitions are more or less likely to occur overall, but they are not adjusted for individual characteristics that may affect the timing of such transitions. In order to assess how such characteristics influence the likelihood of transitioning to bridge employment or to retirement, a discrete-time event-history model was used. Bridge employment and retirement were treated as competing outcomes see Discrete-time event-history analysis.

The main findings from the final model may be summarized as follows Table 1 :. How long do individuals remain in bridge employment before entering retirement?

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And how likely are those who went from career employment to retirement to subsequently enter bridge employment? Analysis of these questions was limited for two reasons. First, the smaller samples i. Secondly, while it is possible that some individuals alternate more than once between bridge employment and retirement, sufficient information was available only for the first transition follow-up data are available for a maximum of four years after a first transition and sample sizes decrease with the of transitions.

Hence, the following estimates pertain to a first episode of bridge employment or retirement, and they are not adjusted for individual characteristics. On the whole, older workers were more likely to transition to bridge employment than to retirement, but bridge employment is a transitory state, not a permanent one. A rough estimate of the median time in bridge employment is two to three years.

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Longer-term trends could not be examined, but it is plausible that the probability increases after a few more years. Furthermore, these estimates were not adjusted for individual characteristics. In particular, the conditional probability likely evolves differently depending on the age of workers when they entered bridge employment—being higher for older individuals in the short term. Thus, consistent with other studies, retirees returning to the labour market appeared more likely to do so in the first year following their retirement.

Past the first year, the likelihood of a return to work seemed much lower, at least up to the fourth year. Again, these estimates were not adjusted for individual characteristics—in the short term, younger retirees may have a higher return probability. Overall, the in this study support the notion of retirement as a process rather than a discrete event. Many older workers who start receiving a pension stay in the labour market in some capacity for roughly two to three years before they completely cease employment.

As well, many of those who cease paid work at one point subsequently return to the labour market, especially in the first year following retirement. Therefore, it could be argued that conceiving of work and retirement as separate stages in the course of life does not accurately mirror reality for a substantial proportion of older adults. Given some of the characteristics higher earnings, university education and an employer-sponsored pension plan associated with a greater probability of leaving career employment for bridge employment, it would appear that for individuals making this transition it may well be a choice rather than a necessity.

Given the data limitations, it was not possible to assess whether this also held true for those who returned to the labour market after a period of retirement. However, a study found that financial issues were an important reason for retirees to return to the labour market, particularly for those who had retired because of downsizing, unemployment or health problems Schellenberg et al. Each panel of respondents, approximately 15, households or 30, adults, is surveyed for six consecutive years.

A new panel is introduced every three years, so two panels always overlap. This study uses the third panel of the SLIDwhich followed respondents from to Cross-sectional respondents age 50 to 69 were categorized in career employment, bridge employment, or retirement for each year. Career employment means having employment income or Employment Insurance EI benefits, no pension income and not reporting retirement as the major activity.

Bridge employment means having employment income or EI benefits, pension income or reporting retirement as the major activity, and not out of the labour force for more than six consecutive months at the end of the year. Retirement means having pension income or self-identifying as retired with no employment income or EI benefits, or having pension income or self-identifying as retired with employment income or EI benefits, but out of the labour force for more than six consecutive months at the end of the year. Individuals with no earnings or pension benefits and whose self-reported major activity was not working, looking for work or retired were categorized as other.

The examination of transitions into and out of bridge employment used a longitudinal sample of 3, respondents age 51 to 65 in a career job inassuming they had never retired or entered bridge employment ly. This age range was chosen because transitions occurring at earlier ages are rare and most likely related to special situationsand because the assumption of continued career employment before appeared questionable for those over Longitudinal respondents in the third panel of the SLID were surveyed annually over the period to For those age 51 to 65 and in career employment inthe following variable was defined:.

Respondents who were in career employment in were assumed to have neither retired nor entered bridge employment ly, and were included in the group at risk of leaving career employment starting at the age they were in Because the career employment, bridge employment and retirement were defined on an annual basis, transitions could only be measured in one-year intervals.

This leaves 1- h B t - h R t as the risk of remaining in career employment at age t. With the assumption of independent outcomes, h B t and h R t can be estimated via maximum likelihood in a standard multinomial logit model Fahrmeir and Tutz :. It is usual in discrete-time event history analysis to model time-dependence with a set of binary indicators one for each tminus one.

Estimated baseline risks obtained with such indicators are shown in Chart D. Some of the binary indicators were subject to multi-collinearity problems in specifications of the model that included other independent variables. For this reason, the whole set of indicators was replaced with a polynomial function of age of degree In contrast to other functions tested e. The initial model specification included many personal, household and employment-related characteristics, a of which were removed from subsequent specifications because they were not statistically ificant.

Binary indicators for survey year to for possible period effects were also part of this initial specification. All variables except sex could vary over time. He can be reached at or perspectives statcan. She can be reached at or perspectives statcan. This analysis was undertaken while Ms. Archived Content Information identified as archived is provided for reference, research or recordkeeping purposes.

How common is bridge employment? From career employment What is bridge employment? Top of. For this article Tables and charts Data source and definitions Citation Contact the editor Studies by May Luong More on this subject Post-retirement employment Public pensions and work.

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