The National Assembly this week began consultations on the future of the Quebec Pension Plan. From the outset, the Parti Québécois and Québec solidaire announced their total opposition to the idea of raising the retirement age.
Even before hearing the speakers and the experts, these parties have settled the question. The explanations supporting their position have not really responded to all the figures that fuel the debate. Let us understand that they were above all guided by their political instincts.
political danger
I understand them: the subject is a real political inferno. In France, general strikes are organized to oppose the pension reform. In the past, French politicians have chosen to back down from the wrath of the streets.
In Canada, Stephen Harper had announced a progressive plan to push back to 67 the age of access to the pension. Experts and actuaries saw it as a logical and responsible gesture in the long term. But what an unpopular gesture!
Seeing the available votes, Justin Trudeau hastened to pledge to reverse these changes. He was elected and honored that commitment. Experts would tell you that this reform is still relevant. But who will dare to touch that now?
Let’s go back to the consultation on the future of the QPP. Currently, a person can receive their full pension from the Régie des rentes du Québec at age 65. However, you can have access to it from the age of 60 by accepting a pension reduction of 0.6% per month. For example, if you decide to receive the pension from the age of 60, you earn five years of pension, but you will only receive 64% of the amount provided.
The government suggests postponing this date for two years. Access to a retirement pension would only be possible at age 62. Not out of contempt for people reaching retirement age. Because the world has changed.
- Listen to Mario Dumont’s editorial broadcast live every day at 3 p.m. 30 via QUB radio :
Obvious facts
The QPP was created at a time when life expectancy in Canada was 71 years. In 1984, during the last reform, this figure had risen to 76 years. Today, life expectancy reaches 83 years. You can imagine the cost of those extra years of benefits.
Let’s add three other essential data.
We are experiencing labor shortages that will persist. Our tax rules must encourage people to work longer.
Quebecers are retiring earlier than anywhere else in North America.
Many people haven’t saved enough to build an adequate retirement income.
The government’s proposal is not perfect. I have a special thought for people who do physically hard jobs. At 60, some wear and tear is felt.
The discussion is nonetheless unavoidable. We live longer and healthier, so much the better. We now have to adapt our public plans to it.