Add retirement to the discussion agenda
Thanks to the still relatively new and activist government in Ottawa, Canadians are having overdue serious discussions on a number of subjects. Physician- assisted death. Decriminalization and legalization of marijuana. Gender equity in politics and business. Canada’s role in world conflict.
That’s plenty, but there’s another big, serious discussion we need to have. Retirement.
The most significant thing about Prime Minister Justin Trudeau’s recent announcement was not that he will reverse the Conservative decision to raise Old Age Security eligibility from 65 to 67. That’s important. It was an ideological decision made by Stephen Harper without consultation and due consideration.
But it wasn’t scheduled to kick in until 2023. And while most recipients in these uncertain times appreciate their monthly OAS cheque, it’s $570.52 a month, or a bit more than $ 6,800 a year. That amount isn’t going to make or break most retirement plans. When added to maximum CPP benefits - $ 1,092.50 monthly - that equals an annual income of just under $20,000. No, the most significant thing Trudeau said was that we need to have a serious discussion about retirement. Harper’s decision to raise the eligibility age took place in the absence of that discussion, which is one reason it was so distasteful. The Conservative equation on this, which Trudeau rightly calls “simplistic,” was that since people are living longer and are generally in better health, many would like to continue to work. (Aside from anything else, this doesn’t factor in the number of people who would like to retire but cannot afford to.)
But this is a much bigger discussion than simply age of eligibility for OAS, CPP or any other benefit. It’s about the kind of society we want.
The widely-held view that people should work longer if they want to is a good example. What does that say about Canada’s stubborn and worsening youth unemployment problem? Joblessness among young workers is double the rate for adults. In some sectors – teaching comes to mind – older workers remaining or returning to the workplace is one reason young workers are being shut out.
We’re not advocating a return to mandatory retirement. But surely we need a balanced discussion that considers broad ramifications, and not just for older workers and retirees. The future for young workers is equally critical, especially since they are the key to economic sustainability.
It’s complicated, but this discussion needs to take place and soon, before more decisions are made without considering the bigger picture.
It’s complicated, but this discussion needs to take place and soon, before more decisions are made without considering the bigger picture.