In the last period of time, there have been numerous talks about retirement funds, retirement age, and so on. There have been lots of debates and lots of contradictions. It has been announced that the retirement age might be increased to 67 in the year 2025. The difference isn’t very much, as it is only 2 years, but in the same time it can be a very long period of time, especially for the ones who are in bad health shape.
Retirement Age to be Increased?
If the announcement would be made that the retirement age would be increased to 67 in the year 2025, the only ones who would be affected by it, and who might protest against the change would be the young people. People who are over the age of 50 would not be bothered by the announcement, because they would still be able to start claiming when they reach the age of 65. People under the age of 50 would be indifferent to the announcement as well. They would lose around $2,000 because of the change, and the battle would probably not be worth it for that small amount of money, especially since the change would be so far away.
Other people under the age of 50 won’t protest because they might believe that they would not be affected by the change. There are many people who like their job and who plan to work until that age anyway. These people are the ones who have a very high income, and who would most likely have to repay the Old Age Security anyway. If this change were to happen, it would trigger an increase in the age at which the RRSPs must be changed to RRIFs. It could also result in a change at the RRIF withdrawal rules.
What Do these Changes Imply?
Many have stated that such a change would not be very beneficial for the state. Changing the age at which people have the right to receive the Guaranteed Income Supplement and Old Age Security will save some money, but the amount will not be very high. The main advantage which this change would bring will be at the political costs. This is the main reason why the full retirement age might be raised in the United States of America, and the state pension age is raised in the United Kingdom. The changes save a small amount of money and on top of that, it greatly reduces the political costs.
This means that it is almost 100 percent certain that the pension age will be increased. It is believed that the pension age will be increased very soon, in 2 years maximum. In Canada, the change might occur sooner, because of the 1959 baby boom. It is certain that these changes will occur, and they will most likely cause distress amongst the people. The health care system remains the same, even though many want it to be changed, yet the retirement age is increased because it is beneficial for the country.