Ontario Municipal Human Resources Association

For generations, retirement was treated as a final chapter — a clean break from working life, a time to close the office door and step into a slower paced lifestyle. But that story is changing. Increasingly, Canadians are choosing, or needing, to return to paid work after retirement. The trend, often called “unretirement,” is reshaping the way we think about retirement, workforce participation, and employee benefits.

What was once considered unusual is becoming increasingly common. Retirees are returning to part-time, consulting, and flexible roles, often drawn back by financial pressure, a desire for structure, or the opportunity to stay engaged. For HR professionals, this shift matters. It affects:

• retirement planning,
• benefits communication,
• accommodation needs, and
• the way employers support employees across every stage of working life.

Retirement is no longer just an exit conversation. Increasingly, it is becoming part of a broader discussion about flexibility, phased work, and post-retirement options.

What Returning to Work Really Looks Like

Coming back to work after retirement is not always straightforward. While the financial benefits may be clear, personal adjustment can be more complex. Returning workers may need time to adapt to a new routine, a different pace, or a workplace that has changed since they left.

There are physical considerations as well. A retiree returning to work may be managing health changes, mobility issues, or fatigue that make certain roles more challenging. They may also have caregiving responsibilities, such as helping with grandchildren or supporting a spouse with health needs. In short, unretirement is rarely just about work — it is about balancing work with the rest of life.

Technology can create another hurdle. Software, systems, and workplace tools evolve quickly, and employees returning after a break may find themselves navigating unfamiliar platforms or processes. Without support, that learning curve can affect confidence and productivity.

For HR, the message is clear: returning retirees may need a different kind of onboarding. Flexibility, patience, and thoughtful accommodation can make all the difference.

The Benefits and Pension Puzzle

For HR professionals, one of the most important issues to address is how returning to work affects pension and benefits eligibility. The answer will depend on the plan and the type of employment.

In some cases, returning to a non-participating employer may not affect pension payments at all. In others, returning to work if you are a participating employer may suspend pension payments or require the employee to contribute again.

The same is true for health and dental coverage. If an employee returning to work becomes eligible for employer-paid benefits, maintaining a personal health plan may no longer be cost-effective. But canceling personal coverage without checking the rules can create risk. Some plans do not allow re-enrollment once coverage is terminated, while others may offer limited exceptions or temporary pauses. You can advise your returning retiree to check their health care options.

Benefits Plans Require Careful Review

If you plan to include the returning employees in your group health insurance program, there may be complications for those over age 65. Employers should carefully review how their current plans apply to older workers and seek advice where needed.

The takeaway is simple: retirement is no longer always permanent. By recognizing the realities of unretirement, your HR team can better support older workers and create a more flexible experience for all employees.

Written by: Holly Murphy, Victor Retiree Benefits