Companies looking to hang on to skilled baby boomers contemplating retirement may want to consider a work-retirement hybrid made possible by a change to Canadian federal rules. Most pension plans set age 65 as the normal retirement date and many have provisions to allow for people to retire before then without penalty. But, under new legislation, baby boomers can now consider “phased retirement“.

Those 55 and over who are eligible for an unreduced pension from a defined-benefit plan will be able to draw as much as 60 per cent of their pension while still continuing to work and earn benefits. Phased retirement programs let employees gradually reduce their hours at work instead of immediate retirement when they hit a magic number of combined age and years of service. As income decreases with lower hours of work, pension payments increase.

click here for article

search for : baby boomers, phased retirement

Bookmark to: