Freedom 67 a global trend
Excuse me grandma, can I see your ID?
Raising the age of seniority is a new frontier in Canada, where pensioners now collect monthly Old Age Security cheques from the federal government beginning at age 65. But making seniors wait longer for their money is a trend underway in other parts of the world.
The United States, Great Britain, Israel and Australia are among nations that have already implemented gradual age increases for eligible citizens to receive pension payments.
The pressing issue behind those changes is the same concern claimed by our federal government: As the baby boomer generation begins to retire, existing universal pension plans may be financially unsustainable.
The accompanying chart, based on U.S. government data that tracks reciprocal pension arrangements between nations, offers a telling glimpse of how 38 nations care for their oldest citizens through pensions. Government approaches and recipient ages vary widely, with some increases using very long transitions, but the trend appears undeniable.
For instance, Estonia is now pushing women’s retirement age from 61to 63 by 2016 (men are already there). After that, the age in Estonia will rise in small increments to age 65 from 2017 to 2026.
In contrast, the Germans simplified the formula. Pension age is 65 for those born before 1964. After that date, the age is 67.
Greece, Italy, Spain and Portugal have dramatically reformed their pension plans as part of sweeping austerity measures aimed at restoring investor confidence in those troubled economies. Cuts to current pension recipients were part of that reform.
The chart makes it clear that pension evolution, whether a reflection of governments’ financial anxieties or a population of healthier, more active 60-somethings capable of working longer, is a fact of life on the global landscape.
Prime Minister Stephen Harper has so far refused to detail what he has in mind for the country’s seniors. However, it’s believed the feds plan to introduce legislation that will gradually raise eligibility for OAS benefits by two years to age 67.