This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Régimes de retraite d’employeur et incitations à la retraite anticipée au Canada

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Cristiana Pescarus
Maud Rivard

Additional information is available for the following registered author(s):

Abstract

Given the current trend towards population ageing in Canada, we consider the financial incentives inherent in thirteen registered pension plans (that represent 20% of private and public sector employees covered by a registered pension plan) and their impact on the decision of older workers to retire early from the labour market. Three measures are employed to evaluate these incentives for a representative individual with a constant annual income of $38,000 and with 25 years of tenure at age 50 in the base case scenario. These three measures are the punctual value of benefits, the value associated with an additional year of work and, finally, the maximum present value of the stream of pension benefits. The first measure reflects only the value of a year’s worth of benefits upon retirement and does not account for a worker’s life expectancy or inter-temporal preferences. The other two measures are derived from the presented discounted value of benefits evaluated between the moment when retirement occurs and age 90 (when death occurs with a probability of 1). A discount rate of 4% is employed. Our results indicate that all of the plans considered offer strong financial incentives to early retirement. Indeed, it almost always appears financially advantageous to retire before the age of 60 – often around 55 years of age - according to all incentive measures employed. Alternate scenarios (which introduce changes to the annual income level, the number of years of tenure, and to the moment when benefits are drawn) and sensitivity tests produce essentially the same conclusions.

Dans le contexte actuel du vieillissement de la population canadienne, nous nous intéressons aux incitations financières inhérentes à treize régimes de retraite d’employeur (qui représentent 20 % des employés des secteurs public et privé couverts par un régime de retraite d’employeur) et à leur impact potentiel sur la décision de départ à la retraite des travailleurs âgés. Trois mesures sont employées afin d’évaluer ces incitations pour un individu représentatif lequel a un revenu annuel constant de 38 000 $ et 25 ans d’ancienneté à l’âge de 50 ans dans le scénario de base. Ces trois mesures sont la valeur ponctuelle des prestations, la valeur d’une année supplémentaire sur le marché du travail et, finalement, la valeur actualisée maximale. La première mesure ne tient compte que du montant annuel que recevrait le travailleur dès son départ à la retraite peu importe son horizon de vie ou sa préférence pour le temps. Les deux autres mesures sont calculées en utilisant le concept de valeur actualisée sur l’horizon compris entre le moment de la retraite et l’âge de 90 ans (le moment où la probabilité de mourir est égale à 1) avec un taux d’escompte inter-temporel égal à 4 %. Nos résultats indiquent que les régimes étudiés présentent de fortes incitations financières à la retraite anticipée. En effet, il semble presque toujours financièrement avantageux de prendre sa retraite avant l’âge de 60 ans - souvent même autour de 55 ans - et ce quelle que soit la mesure des incitations retenue. Des scénarios alternatifs (faisant varier le salaire, le niveau d’ancienneté, ainsi que l’âge à partir duquel les prestations sont demandées) et des tests de sensibilité produisent essentiellement les mêmes conclusions.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help file. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.fin.gc.ca/scripts/Publication_Request/request2_e.asp?doc=wp2005-02e.pdf
Our checks indicate that this address may not be valid because: 500 Internal Server Error. If this is indeed the case, please notify (Gustavo Durango)
File Format:
File Function:
Download Restriction: no

Publisher Info
Paper provided by Department of Finance Canada in its series Working Papers-Department of Finance Canada with number 2005-02.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote), ReDIF
Length:
Date of creation:
Date of revision:
Handle: RePEc:fca:wpfnca:2005-02

Contact details of provider:
Postal: 140 O'Connor St., Ottawa, K1A 0G5
Phone: 613-992-1573
Web page: http://www.fin.gc.ca/
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Gustavo Durango).

Related research
Keywords:

Statistics
Access and download statistics

Did you know? Over 1000 institutions contribute their bibliographic data directly to this service.

This page was last updated on 2009-6-26.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.