If companies want to retain older workers, all it may take are some minor adjustments.

According to Statistics Canada, 28 per cent of those who retired over the past decade would have continued to work if they had been able to reduce their work schedule, either by working fewer days or shorter days-as long as it didn't affect their pensions. The study states that alternative working arrangements might be "an important incentive in encouraging older workers to stay on the job."

The growing number of people nearing retirement as the leading edge of the baby boom generation approaches age 60 has sparked concerns of a shortage of skilled workers, Statistics Canada said. This, in turn, has spurred an interest in encouraging older workers to stay on the job.

Just a year ago a report by Watson Wyatt Canada indicated that “this increased dependency burden will lead to an enormous strain on the Canadian pension system." Unfortunately, according to Statistics Canada, only 12 per cent of retirees said they would have continued working, even if there was no mandatory retirement legislation.