Michel C. Auger’s column on pensions, published on February 12 in the Context section, has generated many comments. Here is an overview of the emails received.
Do not delay
After several articles on the postponement of the payment of the Quebec pension, I notice that we always talk about the long-term net loss (because we collect from age 60) but that we never talk about the loss total for the years when nothing was touched. A simple calculation shows that it takes 10 to 14 years to recover the money left on the table at 60 to 62 years old. And I’m not even talking about 65 or even 70! For someone who had health problems before the age of 60 (cancer, stroke, etc.), I believe the choice is simple: it is better to get the money while you can enjoy it instead of waiting. …
Claude St-Pierre, Saint-Jean-Port-Joli
backbreaking jobs
I have worked my entire career in human resources in the manufacturing sector. What the trade union community is saying is very true. The vast majority of factory workers simply aren’t able to work after age 60, and you have to know that environment to understand it. The work may or may not be heavy, it involves standing all day in an environment that is often noisy and, moreover, often very hot in summer. People have difficulty starting in their late 50s. For example, my father worked 42 years in a factory. He was still standing in the noise and the heat. In addition, he rotated on three shifts (day, evening and night) every two weeks. The last year was really very difficult for him and he was sick for a few months. He retired the very second he turned 60.
Madeleine Senecal
Risky bet
A bird in hand is worth two in the bush ! You know ? I heard that all my childhood. Guess it made its way into my mind. Life expectancy may be 83 years, but we do not know the date of our death. Delaying QPP benefits until age 65 or 70 makes sense if you live to be old, but makes much less sense if you die at 64 like my father. In fact, if we do a simulation (inflation at 2%), we see that delaying QPP benefits to age 70 (compared to age 60) is only the best option when you live at least until age 84, whereas one must live to at least age 71 for delaying benefits to age 65 to be the most revenue-generating option. Who wants to bet on that?
Suzanne Laplante, retired and former health economist
No emergency
I believe 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 withdraw their pension as soon as possible: “You never know and if you leave, the government will take it all, the five more years will compensate for the reduced amount, etc. This resulted in people who worked until age 65 paying large sums in taxes on this manna from heaven, which they did not really need. I personally started withdrawing my pensions at age 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 is better to do it in year 1, rather than wait. It would also be important to provide a social fabric for people who have exhausting jobs or those who have had to leave their jobs prematurely.
Francine Fournier, Two Mountains
The importance of the RRSP
I would not touch the RRQ, but I would increase the possibility from 70 to 72 years. When people would see the difference between 60 and 72, some might decide for themselves to work longer. However, I would strongly encourage RRSPs. There is not enough incentive to save for later: you should not rely solely on the state.
Denis Marquis
The lack of vision in relation to education
If people liked their work, the debate on postponing the minimum age for withdrawing one’s QPP would never have taken place. Once again, we are attacking the consequences rather than the source of the evil: the lack of vision with regard to education. I’m 65, I love my job and I don’t even think about retirement. I give talks in high schools and I always ask students if they would like to be paid for fun, That is my case. I have always told my two daughters that going to school will allow them to choose an exciting and rewarding job rather than being chosen by a job if they don’t go to school. On the other hand, I understand very well that a physical job should allow a worker to retire earlier. What is happening in France right now is totally heretical.
Léon Bérard, engineer, Granby