Are Canadian Workers Retiring Early?
When it comes to gearing up for retirement, Canadian companies are helping their workers prepare for a comfortable post-work lifestyle.
From early retirement to informing employees who are about to leave the workforce, retirement is just a stepping-stone for companies of all sizes.
With rest and relaxation in mind, here's a look at retirement in the Great White North and how companies like yours are handling the transition:
Retirement in Canada
Although it was once common, retirement at age 55 is no longer a reality in today's working world.
This is especially the case in Canada, where the retirement age is on the rise. If you've noticed your employees holding off on their retirement day, then your company isn't alone.
According to Statistics Canada, 50-year-old workers are waiting 14.3 years to retire. This number is up by almost 2 years over the past decade.
With workers in the 50 and older age bracket waiting longer to retire, your company and the Canadian economy as a whole might have to readjust expectations when it comes to hiring new blood.
Fortunately, there are ways your company can help prepare its workers for a timely, worry-free retirement.
How Companies Can Help
The more prepared your employees are for retirement, the easier the transition is for both your company and your workers.
You can help your employees get the retirement ball rolling by keeping them informed and up to date on everything there is to know about their upcoming retirement.
This includes saving for retirement and tips for planning an early retirement.
As the following article shows, employers can provide retirement advice and informational pamphlets that answer questions like, "Retiring Early? Here's what to know about your health insurance options." By covering all the bases, your employees will approach their retirement with confidence.
Retiring in Canada vs. the United States: Comparison
Not all countries follow the same retirement procedures, but it's helpful to see exactly how other countries handle the retirement process. Canada's neighbor to south has a similar retirement framework, yet there are some key differences.
For starters, Canadian workers only have one option when it comes to a retirement savings plan through their employer: the Registered Retirement Savings Plan or RRSP. Americans on the other hand have multiple savings plans to choose from including a traditional and Roth IRA, 401(k), and 403(b).
With said, Canada's RRSP has many of the same great benefits the American retirement plans offer including employer contributions.
In addition, with the number of options available, retirement planning in the U.S. can get a bit confusing whereas Canada's single option makes the process simple and straightforward.
When it comes to government backed retirement benefits, the U.S. has Supplemental Security Income and Social Security. The Canadian government gives more support to its retirees, which is great news for your employees.
There are three government sponsored retirement options in Canada: Old Age Security (OAS), Guaranteed Income Support (GIS), and Canada Pension Plans (CPP). The OAS plan offers benefits to all age qualifying Canadians whereas the GIS and CPP plans depend on income and contributions made during employment.
If your employees are thinking about retirement, keep in mind the Canadian retirement pointers above.
About the Author: Adam Groff is a freelance writer and creator of content. He writes on a variety of topics including finances and retirement.