Thomas Klassen is a professor in the School of Public Policy and Administration at York University.<\/p>\n
Canadians who reach the age of 65 will live longer than ever \u2013 another 21 years, of which 15 are in good health. They are also retiring later than ever<\/a>. The average retirement age is 65.4, while a generation ago it was 61, according to data from Statistics Canada. <\/p>\n Government policy has provided Canadians with some incentive to stay in the workforce for longer by lessening the link between retirement and pension eligibility. Retirement benefits from the Canada Pension Plan can be delayed from 60 to any age up to 70, with higher benefits for each year that it\u2019s delayed. The Old Age Security benefit can be pushed from 65 to any age up to 70. If not paid until age 70, recipients will receive one-third more in benefits than at 65. <\/p>\n Canadians at 60 can receive CPP and remain employed. At 65, they can simultaneously receive CPP and OAS benefits while continuing to earn employment income, or they can choose not the receive one or both of the benefits. They can also contribute to an employer pension and to registered retirement savings plans until they reach 71.<\/p>\n Rob Carrick: What it\u2019s like to retire in an era of high inflation<\/a><\/p>\n Yet, there are still barriers to the labour market participation of older workers. Many provinces allow employers to impose a mandatory retirement age of 65 if the workplace has a pension plan. Labour and human rights legislation permit employers to exclude workers 65 and over from health care, disability and life insurance benefits. The regulations that govern workers\u2019 compensation schemes continue to assume that employees retire at 65. <\/p>\n At present, workers can no longer contribute to their employer pension or RRSP once they reach 71, but must then begin to receive pension payments and withdraw funds from their registered retirement income funds. The Canadian Association of Retired Persons and various pension industry groups have long called for the elimination of mandatory withdrawals from RRIFs at any age, or the option to delay those withdrawals until 75. Doing so would provide older people, whether employed or retired, with greater control of their retirement savings.<\/p>\n In adjusting and modernizing employment regulations governing older workers, policy-makers must allow individuals to make their own choices, rather than dictating solutions.<\/p>\n The Harper government\u2019s ill-fated policy to raise the eligibility age of the OAS to 67 is a textbook example of what not to do. Limiting access to a benefit, especially one aimed at retired people with fixed income, was both poor politics and policy. The Trudeau government promptly reversed the age increase once it assumed office. A wiser policy has been to keep the age of eligibility at 65, but provide the option \u2013 and incentives \u2013 for individuals to delay receiving benefits.<\/p>\n