A report from the Canadian Federation of Independent Business suggests the cabinet should modify tax credits and benefit programs to encourage wage earners to stay in the workforce after age 65.According to Blacklock’s Reporter, this comes after a July 24 appeal by the Minister of Industry to "support retirees" who opt to continue working.“Canada’s economy is being crippled by labour shortages,” said today’s Federation report Unlocking Potential: Breaking Down Barriers to Work Across All Ages. It counted 550,000 job vacancies in the private sector.“Encouraging older adults who are willing and able to work to continue working longer is critical,” said Unlocking Potential. “To this end, governments should review and reform certain income-tested elements of Canada’s pension and tax credit system that can create disincentives to work for seniors.”The suggested reforms included the repeal of current amendments to the Income Tax Act. These amendments reduce non-refundable tax credits for Canadians over 65 earning more than $39,826 annually.“Rather than basing eligibility for this credit on age and income, the government could base it solely on age so that all seniors benefit equally and do not face any disincentives to work extra hours or earn extra income,” wrote the Federation.“Canada’s population is experiencing the effects of aging, with 18.5% of the population being 65 years or older in 2021,” said the report. “Projections indicate by 2068, this age group will comprise more than a quarter of the population. The trend will not subside any time soon.”Industry Minister François-Philippe Champagne, in a July 24 letter to the Commons Industry committee, agreed the Income Tax Act should “not create barriers to seniors who want to remain in the workforce.” Incentives would apply only to those who choose to stay on the job, he wrote: “The tax system should not create undue barriers for seniors who wish to return or remain in the workforce.”The number of seniors still working has reached the highest level ever recorded. In its 2020 report Old Age Security Program Phase II Evaluation, the department of employment estimated that more than a quarter of pensioners, about 28%, were still working.In 2013, regulations were modified to permit workers of pension age to delay their Old Age Security payments for up to five years. This change was made in exchange for receiving higher monthly benefits later on.In a related 2017 report, Statistics Canada counted more than a million seniors in the workforce. “The percentage of seniors who reported working nearly doubled between 1995 and 2011, with most of the increase coming from part-year or part-time work,” said the report Working Seniors in Canada.Statistics Canada discovered 7% of pensioners in their eighties were still working. Additionally, among Canadians in their seventies, 20% were still part of the workforce. Common jobs for these individuals included sales, retail management, office administration and truck driving.
A report from the Canadian Federation of Independent Business suggests the cabinet should modify tax credits and benefit programs to encourage wage earners to stay in the workforce after age 65.According to Blacklock’s Reporter, this comes after a July 24 appeal by the Minister of Industry to "support retirees" who opt to continue working.“Canada’s economy is being crippled by labour shortages,” said today’s Federation report Unlocking Potential: Breaking Down Barriers to Work Across All Ages. It counted 550,000 job vacancies in the private sector.“Encouraging older adults who are willing and able to work to continue working longer is critical,” said Unlocking Potential. “To this end, governments should review and reform certain income-tested elements of Canada’s pension and tax credit system that can create disincentives to work for seniors.”The suggested reforms included the repeal of current amendments to the Income Tax Act. These amendments reduce non-refundable tax credits for Canadians over 65 earning more than $39,826 annually.“Rather than basing eligibility for this credit on age and income, the government could base it solely on age so that all seniors benefit equally and do not face any disincentives to work extra hours or earn extra income,” wrote the Federation.“Canada’s population is experiencing the effects of aging, with 18.5% of the population being 65 years or older in 2021,” said the report. “Projections indicate by 2068, this age group will comprise more than a quarter of the population. The trend will not subside any time soon.”Industry Minister François-Philippe Champagne, in a July 24 letter to the Commons Industry committee, agreed the Income Tax Act should “not create barriers to seniors who want to remain in the workforce.” Incentives would apply only to those who choose to stay on the job, he wrote: “The tax system should not create undue barriers for seniors who wish to return or remain in the workforce.”The number of seniors still working has reached the highest level ever recorded. In its 2020 report Old Age Security Program Phase II Evaluation, the department of employment estimated that more than a quarter of pensioners, about 28%, were still working.In 2013, regulations were modified to permit workers of pension age to delay their Old Age Security payments for up to five years. This change was made in exchange for receiving higher monthly benefits later on.In a related 2017 report, Statistics Canada counted more than a million seniors in the workforce. “The percentage of seniors who reported working nearly doubled between 1995 and 2011, with most of the increase coming from part-year or part-time work,” said the report Working Seniors in Canada.Statistics Canada discovered 7% of pensioners in their eighties were still working. Additionally, among Canadians in their seventies, 20% were still part of the workforce. Common jobs for these individuals included sales, retail management, office administration and truck driving.
