IDEAS home Printed from https://ideas.repec.org/a/cdh/commen/345.html

Later Retirement: the Win-Win Solution

Author

Listed:
  • Peter Hicks

    (Peter Hicks Consulting)

Abstract

Over the coming two decades people are likely to stay in the workforce much longer – by about five years. There will be a strong trend towards later retirement as a result of social and economic pressures, without any policy action. The results will be largely positive and should therefore be supported by policy whenever possible. Delaying work-retirement transitions by five years would have large, positive economic and fiscal effects, reducing pressures on growth, government finances and pension funding. While there is no immediate crisis to be addressed, a key reform will be to gradually increase the standard age of pension eligibility in order to bring it more in line with increases in longevity. Such reforms should involve gradually raising the age band at which one could receive C/QPP. Similar changes to the Old Age Security (OAS) would provide consistency in signals about retirement ages.

Suggested Citation

  • Peter Hicks, 2012. "Later Retirement: the Win-Win Solution," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 345, March.
    • Handle: RePEc:cdh:commen:345
    as

    Download full text from publisher

    File URL: https://www.cdhowe.org/public-policy-research/later-retirement-win-win-solution
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kevin D. Moore & William Robson & Alexandre Laurin, 2010. "Canada’s Looming Retirement Challenge: Will Future Retirees Be Able to Maintain Their Living Standards upon Retirement?," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 317, December.
    2. Stefanie Behncke, 2009. "How Does Retirement Affect Health?," University of St. Gallen Department of Economics working paper series 2009 2009-13, Department of Economics, University of St. Gallen.
    3. Frank T. Denton & Christine H. Feaver & Byron G. Spencer, 2009. "Cohort Working Life Tables for Older Canadians," Quantitative Studies in Economics and Population Research Reports 432, McMaster University.
    4. Frank T. Denton & Ross Finnie & Byron G. Spencer, 2009. "Patterns of Retirement as Reflected in Income Tax Records for Older Workers," Social and Economic Dimensions of an Aging Population Research Papers 257, McMaster University.
    5. Frank T. Denton & Byron G. Spencer, 2011. "Age of Pension Eligibility, Gains in Life Expectancy, and Social Policy," Canadian Public Policy, University of Toronto Press, vol. 37(2), pages 183-199, June.
    6. Peter Hicks, 2011. "The surprisingly large policy implications of changing retirement durations," Social and Economic Dimensions of an Aging Population Research Papers 284, McMaster University.
    7. Martin Hering & Thomas R. Klassen, 2010. "Strengthening Fairness and Funding in the Canada Pension Plan: Is Raising the Retirement Age an Option?," Social and Economic Dimensions of an Aging Population Research Papers 263, McMaster University.
    8. Tammy Schirle, 2008. "Why Have the Labor Force Participation Rates of Older Men Increased since the Mid-1990s?," Journal of Labor Economics, University of Chicago Press, vol. 26(4), pages 549-594, October.
    9. Robin Banerjee & William B.P. Robson, 2009. "Faster, Younger, Richer? The Fond Hope and Sobering Reality of Immigration's Impact on Canada's Demographic and Economic Future," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 291, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Van Borm, Hannah & Burn, Ian & Baert, Stijn, 2021. "What Does a Job Candidate's Age Signal to Employers?," Labour Economics, Elsevier, vol. 71(C).
    2. William B.P. Robson & Colin Busby & Aaron Jacobs, 2017. "The Fiscal Implications of Canadians’ Working Longer," e-briefs 268, C.D. Howe Institute.
    3. James MacGee, 2012. "The Rise in Consumer Credit and Bankruptcy: Cause for Concern?," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 346, April.
    4. Peter Hicks, 2017. "Towards a New Balance in Social Policy: The Future Role of Guaranteed Annual Income within the Safety Net," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 465, January.
    5. Marcel Boyer & Sebastien Boyer, 2013. "The Main Challenge of Our Times: A Population Growing Younger," e-briefs 161, C.D. Howe Institute.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wallenius, Johanna, 2022. "R(a)ising employment of older individuals," The Journal of the Economics of Ageing, Elsevier, vol. 23(C).
    2. Frank van Erp & Niels Vermeer & Daniel van Vuuren, 2013. "Non-financial determinants of retirement," CPB Discussion Paper 243.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    3. Andreas Kuhn & Jean-Philippe Wuellrich & Josef Zweim�ller, 2010. "Fatal attraction? Access to early retirement and mortality," IEW - Working Papers 499, Institute for Empirical Research in Economics - University of Zurich.
    4. Nicole Maestas & Julie Zissimopoulos, 2010. "How Longer Work Lives Ease the Crunch of Population Aging," Journal of Economic Perspectives, American Economic Association, vol. 24(1), pages 139-160, Winter.
    5. Thorsten V. Koeppl, 2009. "How Flexible Can Inflation Targeting Be? Suggestions for the Future of Canada's Targeting Regime," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 293, August.
    6. Queiroz, Bernardo L. & Souza, Laeticia R., 2017. "Retirement incentives and couple’s retirement decisions in Brazil," The Journal of the Economics of Ageing, Elsevier, vol. 9(C), pages 1-13.
    7. Courtney C. Coile, 2018. "The Evolution of Retirement Incentives in the US," NBER Chapters, in: Social Security Programs and Retirement around the World: Reforms and Retirement Incentives, pages 435-459, National Bureau of Economic Research, Inc.
    8. Pérez, Carlos & Martín-Román, Ángel & Moral, Alfonso, 2020. "Two decades of the complementary leisure effect in Spain," The Journal of the Economics of Ageing, Elsevier, vol. 15(C).
    9. David M. Blau & Ryan M. Goodstein, 2010. "Can Social Security Explain Trends in Labor Force Participation of Older Men in the United States?," Journal of Human Resources, University of Wisconsin Press, vol. 45(2).
    10. Rabaté, Simon, 2019. "Can I stay or should I go? Mandatory retirement and the labor-force participation of older workers," Journal of Public Economics, Elsevier, vol. 180(C).
    11. Vipul Bhatt, 2017. "Cohort Differences in Joint Retirement: Evidence from the Health and Retirement Study," Journal of Labor Research, Springer, vol. 38(4), pages 475-495, December.
    12. Pierre Brochu, 2013. "The source of the new Canadian job stability patterns," Canadian Journal of Economics, Canadian Economics Association, vol. 46(2), pages 412-440, May.
    13. Riddell, Chris & Riddell, W. Craig, 2025. "What Did We Learn from the North American Income Maintenance Experiments? New Data and Evidence on Household Behavior and Labor Supply," IZA Discussion Papers 18174, IZA Network @ LISER.
    14. Håkan Selin, 2017. "What happens to the husband’s retirement decision when the wife’s retirement incentives change?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(3), pages 432-458, June.
    15. Pierre Lefebvre & Philip Merrigan & Pierre-Carl Michaud, 2011. "The Recent Evolution of Retirement Patterns in Canada," Social and Economic Dimensions of an Aging Population Research Papers 287, McMaster University.
    16. Mavromaras, Kostas & Zhu, Rong, 2013. "Labour Force Participation of Mature Age Men in Australia: The Role of Spousal Participation," IZA Discussion Papers 7581, IZA Network @ LISER.
    17. Sudipto Banerjee & David Blau, 2016. "Employment Trends by Age in the United States: Why Are Older Workers Different?," Journal of Human Resources, University of Wisconsin Press, vol. 51(1), pages 163-199.
    18. Heywood, John S. & Siebert, W. Stanley, 2009. "Understanding the Labour Market for Older Workers: A Survey," IZA Discussion Papers 4033, IZA Network @ LISER.
    19. Niels Vermeer & Maarten Rooij & Daniel Vuuren, 2019. "Retirement Age Preferences: The Role of Social Interactions and Anchoring at the Statutory Retirement Age," De Economist, Springer, vol. 167(4), pages 307-345, December.
    20. Stefanie Behncke, 2012. "Does retirement trigger ill health?," Health Economics, John Wiley & Sons, Ltd., vol. 21(3), pages 282-300, March.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cdh:commen:345. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kristine Gray The email address of this maintainer does not seem to be valid anymore. Please ask Kristine Gray to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/cdhowca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.