Michel C. Auger’s column on pensions, published in the Context section on February 12, drew a lot of comment. Here you will find an overview of the e-mails received.
Posted at 2:00 p.m
Don’t delay
After several articles on deferring Quebec pension payments, it strikes me that we always talk about the long-term net loss (because we start collecting from age 60), but we never talk about the total loss for the years when nothing was touched. A simple calculation shows that it takes 10 to 14 years to recover the money that is on the table by the age of 60 to 62. And I’m not even talking about 65 or even 70! For someone who had health problems (cancer, stroke, etc.) before the age of 60, I think the choice is easy: it’s better to get the money while you can enjoy it than to wait. …
Claude St-Pierre, Saint-Jean-Port-Joli
Bone breaking jobs
I’ve worked my entire HR career in the manufacturing industry. What the union community is saying is very true. The vast majority of factory workers are simply not able to work after the age of 60 and one needs to know this environment to understand it. The work may or may not be hard, it means standing all day in an environment that is often noisy and, moreover, often very hot in the summer. People have trouble starting in their late 50s. For example, my father worked in a factory for 42 years. He was still standing in the noise and the heat. He also rotated three shifts (day, evening and night) every two weeks. The last year was really very difficult for him and he was ill for a few months. The second he turned 60, he retired.
Madeleine Senecal
Risky bet
A bird in the hand is worth two in the bush! You know ? I heard that all my childhood. Guess it crept into my head. Life expectancy may be 83 years, but we don’t know the date of our deaths. Postponing QPP benefits until age 65 or 70 makes sense as you age, but makes much less sense if you die at 64 like my father did. If we run a simulation (inflation at 2%), we see that deferring QPP benefits to age 70 (compared to age 60) is only the best option if you live to at least age 84 while one must live to age 84 Minimum age of 71 to defer benefits to age 65 to be the top-grossing option. Who wants to bet?
Suzanne Laplante, retired and former health economist
No emergency
I think the secret is in the information. A lot of people don’t know all the information you gave us. Not so long ago, financial advisors advised their clients to start drawing their pension as soon as possible: “You never know and if you leave, the state will take everything, the five more years will compensate for the reduced amount, etc. This led to that people who worked until the age of 65 paid large sums in taxes on this manna from heaven that they didn’t really need. Personally, I started drawing my pension at the age of 69 and I don’t regret it at all. There is no urgency in Quebec because, unlike France, our fund is healthy. But if the government wants to do it, it’s better to do it in year 1 than to wait. It would also be important to create a social fabric for people who have busy jobs or who have had to leave their jobs early.
Francine Fournier, Two Mountains
The importance of the RRSP
I wouldn’t touch the RRQ, but I would increase the possibility from 70 to 72 years. If people saw the difference between 60 and 72, some might choose to work longer hours. However, I would strongly recommend RRSPs. There is no incentive to save for later: Don’t rely solely on the state.
Denis Marquis
The lack of vision in relation to education
If people liked her work, there would never have been a debate about moving the minimum age for QPP withdrawal. Once again we attack the consequences rather than the source of the evil: the lack of vision in relation to education. I’m 65, I love my job and I’m not even thinking about retirement. I lecture at high schools and I always ask students if they want to get paid to have fun, which I am. I’ve always told my two daughters that going to school gives them an opportunity to choose an exciting and rewarding job rather than being picked out of a job if they don’t go to school. On the other hand, I understand very well that a physical job should allow an employee to retire earlier. What is happening in France right now is absolutely heretical.
Léon Bérard, Engineer, Granby