As life expectancy continues to rise and the population ages, many countries around the world are re-evaluating their retirement age policies. Canada is no exception, with the government recently announcing changes to the retirement age in order to address the challenges posed by an aging population.
One of the most significant changes is the gradual increase of the eligibility age for the Old Age Security (OAS) pension and the Guaranteed Income Supplement (GIS) from 65 to 67. This change will be phased in over a six-year period starting in 2023 and will affect Canadians born between April 1, 1958, and January 31, 1962. For those born after 1962, the eligibility age will remain at 67.
This shift in retirement age has sparked debate among Canadians, with some in favor of the change as a necessary response to the increasing strain on social security programs, while others see it as unfairly penalizing older workers who may not be able to continue working until the new eligibility age.
It is important for Canadians to be aware of these changes and to plan accordingly for their retirement. Here are some key points to consider:
1. Start saving early: With the retirement age increasing, it is more important than ever to start saving for retirement as early as possible. Whether through a company pension plan, RRSPs, TFSAs, or other savings vehicles, Canadians should take advantage of the time they have to build a nest egg for their retirement.
2. Consider alternative retirement options: For those who may not be able to work until the new eligibility age, there are alternative retirement options to consider. This could include part-time work, freelance or consulting work, or early retirement with reduced benefits. It is important to explore all options and determine the best course of action based on individual circumstances.
3. Stay informed: Changes to retirement age policies can have a significant impact on Canadians’ financial planning and retirement goals. It is important to stay informed about any updates or changes to retirement age eligibility and to seek advice from financial advisors or retirement planning experts to understand how these changes may affect you.
Overall, the changing retirement age in Canada is a reflection of the shifting demographics and economic realities facing the country. By being proactive and planning ahead, Canadians can navigate these changes and ensure a secure and fulfilling retirement.
