I'm nearly 62 and just got offered my dream job. Should I take it even though I plan to retire within a year anyway?

John, 61, was nearly set for retirement: he had a good job, a solid nest egg and would benefit from the extra income afforded by taking the Canada Pension Plan (CPP).

Then life zigged. His company laid him off — much to his relief, since he planned to give notice anyway — and his severance will cover him until the month his CPP benefits would have started.

There’s a catch: he’s not yet 65, so he’d need to bridge certain expenses on his own until he can also collect Old Age Security (OAS) and fully tap into senior benefits.

Additionally, his former employer has offered him a team-leading, client-facing role in a department he’s always wanted to join. The pay and benefits are strong. He’s tempted — but he can’t see himself working past late 2025.

He wonders if it’s fair to take a leadership job he intends to leave within a year.

What’s his situation?

Let’s say John is married. His 60-year-old spouse has been covered under his employer’s benefits plan and is still a few years away from full OAS and CPP eligibility.

The couple has roughly $1 million saved — about $940,000 in RRSPs/TFSAs and $60,000 in cash — with a mortgage nearly paid-off. Canadians estimate they’ll need about $1.7 million to retire comfortably in 2025, so John may be within striking distance even without maximizing CPP — but not quite at the “magic number.”

Many older Canadians say work offers more than just a paycheque. A national survey from Statistics Canada found that older workers like their job or stay engaged. — and enjoy the extra income.

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Would working longer help substantially?

Yes, potentially in three ways:

CPP math

If John starts CPP at 62, the money he will receive from this benefit is permanently reduced (up to 7.2% per year before age 65). Delaying beyond 65 increases benefits by 0.7% per month (8.4% per year) up to age 70.

If he already applied, he generally has up to 12 months after his first payment to cancel his application, repay benefits received and restart later at a higher amount.

And if he works while receiving CPP before age 70, he may still have to contribute — which could increase his future pension through the Post-Retirement Benefit (PRB).

Benefits and insurance

Continuing to work can keep John on an employer-sponsored benefits plan, potentially avoiding the cost for prescription drugs, dental care, or vision expenses before full provincial and federal senior benefits kick in.

Increase savings

Working for even 12–24 months allows him to top up RRSPs and TFSAs, and to take advantage of higher contribution room from earned income.

There’s also a non-financial upside: older adults who keep working often report better mental health, purpose and life satisfaction than those who leave the workforce abruptly. If the new role is genuinely interesting, John may enjoy the extra time.

How to decide

Taking a client-facing, team-lead job and exiting in under a year can create transition challenges — and possibly bruise his reputation with that employer.

If he loves the work, values the benefits, can delay CPP and is willing to give the role a solid two-year run, then he should take the job.

A practical compromise is to commit to 18–24 months, be transparent about a limited horizon, and use the time to maximize savings and benefits.

John is also in a good position to retire now and cover pre-OAS expenses without straining his finances.

Either way, he’s set up well. But if the job is truly the dream, the financial and lifestyle advantages suggest he should enjoy one last lap in the workforce — and retire on his terms.

Sources

1. BMO: BMO Retirement Survey: Over Three Quarters of Canadians Worry They Will Not Have Enough Retirement Savings Amid Inflation (Feb 12, 2025)

1. Government of Canada: CPP retirement pension: After you apply