Muhammad Aamir, Local Journalism Initiative Reporter, The Milton Reporter
A new study has stressed the governments of Canada to remove barriers that discourage the senior citizens from remaining in the workforce, if the governments want to help those who wish to continue working.
The study, conducted by an independent public policy think-tank Fraser Institute, said that all Canadians, regardless of their age, should be free to making their own choices about working, without the government ‘limiting those choices’ or ‘essentially penalising those who want to work’.
Morley Gunderson authored the study titled Barriers to the Labour Force Participation of Older Workers in Canada.
According to the study, the ratio of seniors to the working age population in Canada will double from 20.3 per cent in 2010 to 38.4 per cent in 2040—yet another indicator of Canada’s aging population. Currently, if seniors want to continue working after age 65, they experience reduction in government benefits, higher effective tax rates, mandatory withdrawals of benefits all the while moving to higher tax bracket, and reduction in government pension benefits.
“In Canada, the rules around employment and retirement seem antiquated and detached from the changing nature of work and the desire of many Canadians to continue working into their golden years,” Gunderson said.
“These barriers to working not only hurt the economy but can also hinder the ability of seniors to stay active and healthy.”