Engaging Mature Workers

Mature workers represent a significant source of underutilized talent and labour supply in the Canadian and Albertan economies. Mature workers can play a pivotal role in mitigating the impacts of the skilled labour shortage anticipated within the next decade.

However, federal government retirement programs and policies such as the Canadian Pension Plan, Old Age Security program, and tax-assisted private savings policies, do not reflect the current demographic, retirement and life expectancy realities in Canada.In fact, these programs may actually deter mature worker participation, when they could be modified to create incentives to continue in the labour force.

The Calgary Chamber of Commerce has recommended changes to these programs since 2007 in a submission made to the Federal Expert Panel on Older workers. Recent advocacy efforts include the Chamber's 2010 Candian Chambers of Commerce Aging Workforce resolution and its 2011 Alberta Chambers of Commerce Mature Workers resolution.

Changes advocated by the Chamber include:

• Expanding the age range of CPP eligibility from 60-70 to 60-75, and provide incentives for individuals who take their benefits later (e.g. after 70)
• Removing the clawback mechanism of the OAS so benefits aren't reduced as income increases
• Allowing greater flexibility to allow RRSP savings to continue until age 75

Results

Highlights