Canada needs to put programs in place to stop workers from taking early retirement
Encouraging older workers to stay in the workforce longer will benefit Canada’s economy and the workers themselves, according a report by the Organization for Economic Co-operation and Development (OECD).
Part of the OECD’s series on Ageing and Employment Policies, the report on Canada’s policies found that if Canadians continue to retire early it will lead to a pronounced slowdown in labour force growth and a weakened economy.
The report also found that many older Canadians want to continue working, but only if appropriate policies and practices were put in place in the workforce.
The OECD highlights the importance of rooting out age discrimination in the workplace and retraining employers and co-workers who exhibit ageist behaviours and attitudes.
If the negative attitudes persist, federal and provincial governments should work with social partners and employers to develop good workplace practices, perhaps modeling the United Kingdom’s Age Positive campaign and its Code of Practice on Age Diversity in Employment.
The OECD recommends that the federal government abolish the stop-work clause in the Canadian Pension Plan that requires workers aged 60 to 64 to stop working for a month before the first pension payment. This should be changed so that older workers can combine pension income with salaries.
The report also recommends that the government change the income tax and private pension systems so that older workers can accrue and receive benefits simultaneously.
Currently many older job seekers aren’t eligible for employment assistance measures because they don’t qualify for Employment Insurance (EI). The report recommends extending more and better employment service for older, unemployed workers, and to increase participation of older job seekers in employment programs.
However, in order for any of these changes to employment services to work, the government will have to put more money into them. According to the report, Canada’s current spending on active labour market programs as a share of GDP is among the lowest in the OECD.
Part of the OECD’s series on Ageing and Employment Policies, the report on Canada’s policies found that if Canadians continue to retire early it will lead to a pronounced slowdown in labour force growth and a weakened economy.
The report also found that many older Canadians want to continue working, but only if appropriate policies and practices were put in place in the workforce.
The OECD highlights the importance of rooting out age discrimination in the workplace and retraining employers and co-workers who exhibit ageist behaviours and attitudes.
If the negative attitudes persist, federal and provincial governments should work with social partners and employers to develop good workplace practices, perhaps modeling the United Kingdom’s Age Positive campaign and its Code of Practice on Age Diversity in Employment.
The OECD recommends that the federal government abolish the stop-work clause in the Canadian Pension Plan that requires workers aged 60 to 64 to stop working for a month before the first pension payment. This should be changed so that older workers can combine pension income with salaries.
The report also recommends that the government change the income tax and private pension systems so that older workers can accrue and receive benefits simultaneously.
Currently many older job seekers aren’t eligible for employment assistance measures because they don’t qualify for Employment Insurance (EI). The report recommends extending more and better employment service for older, unemployed workers, and to increase participation of older job seekers in employment programs.
However, in order for any of these changes to employment services to work, the government will have to put more money into them. According to the report, Canada’s current spending on active labour market programs as a share of GDP is among the lowest in the OECD.
