Retirement Incentives and Canada’s Social Security Programs
Authors: Kevin Milligan and Tammy Schirle
Editors: Axel Börsch-Supan and Courtney Coile
Overview
Abstract (English)
Since the mid-1990s in Canada, the employment and labor force participation rates of older men and women have increased steadily. In this study, we document Canadian trends alongside measures of the incentives to continue working at older ages embodied in Canada?s social security programs. The social security benefit an individual or couple receives largely depends on their career earnings. We demonstrate that Canada?s programs offering means-tested benefits play an important role in the incentives one has to continue working at older ages. While the main pension program (the Canada Pension Plan) offers higher annual benefits when labor force departure and claiming are delayed, every dollar gained by a low-income senior in annual CPP benefits results in a loss of means-tested benefits. We represent this as an implicit tax on continued work. Since the late 1980s, it appears this implicit tax has been declining.
Abstract (French)
Please note that abstracts only appear in the language of the publication and might not have a translation.
Details
Type | Book chapter |
---|---|
Author | Kevin Milligan and Tammy Schirle |
Editor | Axel Börsch-Supan and Courtney Coile |
Publication Year | 2021 |
Book Title | Social Security Programs and Retirement Around the World: Reforms and Retirement Incentives |
Chapter Title | Retirement Incentives and Canada’s Social Security Programs |
City | Chicago |
ISBN | 9780226674100 |
DOI | 10.7208/chicago/9780226674247.003.0002 |
Publication Language | English |
- Kevin Milligan
- Kevin Milligan and Tammy Schirle
- Retirement Incentives and Canada’s Social Security Programs
- 2021
- Social Security Programs and Retirement Around the World: Reforms and Retirement Incentives
- Axel Börsch-Supan and Courtney Coile
- Chicago
- 9780226674100
- 10.7208/chicago/9780226674247.003.0002