Pattie Lovett-Reid: The case for changing the retirement age
Canada’s actuaries are calling on the country’s governments to increase the age of retirement as Canadians live and work longer at a time when private sector pensions are eroding and interest rates remain low.
“Canadians are living longer than ever, and many are choosing to work beyond age 65,” said John Dark, president of the Canadian Institute of Actuaries, in a release Monday. “It makes sense to update our country’s retirement income programs to reflect this fact.”
Specifically, the CIA is calling for the Canada Pension Plan/Quebec Pension Plan to defer the age it pays out benefits from 65 to 67.
The group is proposing similar changes for Old Age Security (OAS), which would increase the age range a retiree can start receiving benefits to 67-75, up from 65-70.
They also recommend allowing retirees to defer the age they receive their Registered Retirement Saving Plan income to 75, instead of 71.
The group argues that Canadians would benefit from taking their retirement benefits later, as it would allow them to receive a higher lifetime retirement income, and be better protected against the costs of living longer and the effects of inflation on savings.
“Our proposal is a starting point for discussion,” Dark said. “We would welcome the opportunity to help governments review the country’s retirement programs and decide what changes work best for all Canadians.”