With QPP changes, many Quebec workers push retirement age upwards

One-quarter now considering retirement after 70
|hrreporter.com|Last Updated: 03/31/2011

With its March 17 budget, the Quebecgovernment announced it planned to change employer and employee contribution ratesto the Quebec Pension Plan. The new provisions would penalize those who retirebefore age 65 and benefit those who remain professionally active after thatage.

As a result, one-third of provincialworkers feel encouraged to remain in the workforce longer, according to asurvey of 501 Quebec workers by the Ordre des conseillers enressources humaines agréés.

Of those respondents inclined tocontinue working, 26 per cent said they were now considering retiring after age70, versus nine per cent before the new measures were announced. On the otherhand, while many workers (45 per cent) were considering retiring before age 65prior to the March 17 budget announcement, only six per cent are now thinkingalong these lines. And the percentage of workers considering retiring between66 and 69 shrunk from five per cent before the announcement to 20 per centafter the budget.

"Organizations will have toadjust their employee retention strategies to retain older employees. To keepthese workers, they'll have to continue offering them development opportunitiesand challenges, as well as flexible conditions that take their situation intoaccount," said Florent Francoeur, president and CEO of the Ordre desconseillers en ressources humaines agréés.

Prior to the introduction of the newmeasures, the average retirement age targeted was age 63, compared with today'sfigure of 66.7 — a difference of nearly four years — found the survey.

"The continued presence of moreexperienced employees on the labour market is a good thing because theirknow-how can contribute both to organizations' success and to Quebec'sprosperity," said Francoeur.

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