There has been much discussion surrounding the increase of the mandatory retirement age in European countries over the past year. A news release issued on December 16 by the Canadian Human Rights Commission announced the end of mandatory retirement for workers in Canada. Coming on the eve of year-end celebrations, the news went relatively unnoticed.
Basically, certain sections of the Canadian Human Rights Act and the Canada Labour Code have been revoked, thereby ending mandatory retirement for employees once they reach a certain age, regardless of whether they're still capable of working. In Canada, mandatory retirement had already been abolished by all governments except the federal government and the government of New Brunswick.
Working until age 65 or over
More and more people are postponing retirement due to lack of savings or fear of market turbulence. What about you? Do you plan to continue working until age 65 or even longer? Regardless of your answer, you'll still need to plan for your retirement.
Government plans already encourage you to work until age 65 or even longer. Old Age Security benefits don't kick in until after this age. In addition, the penalties for retiring between age 60 and age 65 are going up for both the Régie des rentes du Québec and the Canada Pension Plan. On the flip side, the retirement pension you receive is higher if taken after age 65.
Planning for your retirement
Now more than ever, if you want to leave the working world early, the quality and timing of your retirement depend on your retirement planning and how much you saved during your working years.
Refer to the Thinking about your retirement section of the Desjardins Financial Security website.
Questions? Comments?