What happened to Freedom 55?
Canada’s actuaries are lobbying the federal government to raise the age of retirement throughout the country. Specifically, the Canadian Institute of Actuaries (CIA) is calling for the Canada Pension Plan and Quebec Pension Plan to increase the age at which it pays out benefits from 65 to 67.
The CIA says the changes are needed as Canadians are living and working longer at a time when private sector pensions are declining, and interest rates remain near historic lows. The CIA represents actuaries who compile and analyzes statistics and uses them to calculate insurance risks and premiums.
"Canadians are living longer than ever, and many are choosing to work beyond age 65," said John Dark, President of CIA, in a news release. "It makes sense to update our country’s retirement income programs to reflect this fact."
The group is proposing similar changes for Old Age Security (OAS), which it says should increase the age range a retiree can start receiving benefits to 67-75, up from the current age range of 65-70. The CIA is also recommending that retirees be allowed to defer the age they receive their Registered Retirement Savings Plan income to 75 instead of 71.
The group argues that Canadians would benefit from taking their retirement benefits later, as it would allow them to receive a higher lifetime retirement income and be better protected against the costs of living longer and the effects of inflation on personal savings.
"Our proposal is a starting point for discussion," Dark said in the news release. "We would welcome the opportunity to help governments review the country’s retirement programs and decide what changes work best for all Canadians."
