Postponing retirement for 3 to 6 months is equivalent to saving 1% more of your income for 30 years, notes Hélène Gagné, financial planner and portfolio manager, who cites a study by the National Bureau of Economic Research (USA). « NSERC » means the pension plan of the members of the Sûreté du Québec, which has been in force since September 1, 1971. Prior to this date, members participated in the FRR. Retirement in Québec can be requested at age 65 to receive all financial benefits related to the cessation of activities. You can retire at the age of 60, but in this case you will only receive part of the pension. Before the age of 60, you will not receive anything until you reach that age. You can apply for your retirement pension while continuing to work full-time or part-time, which is called partial retirement. In this case, you will receive your pension in addition to other contributions to the Québec Pension Plan (if your income exceeds $3,500). « Before, there was a balance between when you are dependent, that is, childhood and retirement, and where you work, where you produce, » explains Mario Lavallée, professor of finance at the Université de Sherbrooke and a specialist in pension fund management.

Today, the period of dependence has been prolonged and is putting pressure on society. With retirement at the age of 70, we would return to a balance. When retirement was set at age 65 in 1966, life expectancy was 68 years for men and 75 years for women. Since then, it has increased by 12 and 9 years respectively. The target retirement age is currently 65. The reality is that 42% of Quebecers before their 60th birthday. They retire because they have accumulated enough money or because they have a generous defined benefit pension fund. The Maximum Quebec Pension (QPP) is available at age 65, but can be paid with penalties as early as age 60 and with a premium at age 70. The old-age pension (SV) is paid from the age of 65, but can also be deferred until the age of 70 with a premium. Also read our article: « How much should you save for your retirement ». Supplemental pension plans, commonly known as « pension funds » and registered pension plans (RRSPs) The « RREFQ » is the pension plan of federal employees integrated into a function of the Government of Quebec. This is the pension plan in which certain former employees of the federal government were integrated into the Quebec public service and for which an agreement provided for the creation of a specific pension plan.

Aside from a stronger economy, less generous pension plans and hungry interest, the psychological implications should not be overlooked. Think of all Quebecers who define themselves by their work and whose only social network is made up of their peers. « It`s difficult to go from demanding work with both feet on the Ottoman overnight, » explains Hélène Gagné. And there are many people who say they suffer from isolation in retirement. Before applying for your CPPQ retirement pension, there are certain personal factors you need to consider to ensure that your income is sufficient throughout your retirement. For example, your health and life expectancy, the amount of your savings and the impact of income tax are some of the factors that may justify anticipating or postponing your retirement application. Learn more about these personal factors and, if necessary, contact a financial planner to help you determine the best time to apply for your retirement pension. IMPORTANT: For individuals who joined the EPP after December 31, 2012 AND who retire (or cease to participate in the EPP) before participating in the plan for 7 years, the terms and conditions of the RREGOP apply. This entitles you to a supplement to the old-age pension. This amount is automatically added to your pension amount in the year following your contributions. You will take this supplement for the rest of your life. As a bonus, it will continue to increase every year as long as you continue to work.

The QPP old age pension is available from age 60, but a subsequent application could be advantageous in several ways. « We see more and more pensioners in debt, » she observes. The longer the retirement lasts, the more likely you are to experience a financial shock, such as a parent or spouse in need of care, a sick child, or a divorce. Combined with other pension plans (such as RRSPs or TFSAs), government benefits such as the CPPQ pension help you achieve your retirement goals. Since the age at which you use certain benefits affects their amount, do not hesitate to consult specialists to make good decisions. As a general rule, you are then entitled to a « full old-age pension ». The amount of the old-age pension is calculated according to the age and income from employment on which the employee contributed to the Québec Pension Plan. In Quebec, you will often hear about RRSPs, a plan in which you can invest money to save for retirement. The money invested and its income are not taxable as long as they remain in the RRSP. You can contribute to your RRSP until age 71.

At this point, you will need to transfer your money to another fund or pension. If you withdraw investments from your RRSP, they become taxable. Talk to your financial institution to learn more about RRSPs and other retirement investment options. When you retire, you receive a pension from the public plans: Retirement and Canada Pension Plan (federal) and Quebec Pension Plan (provincial). In general, the amount of each of these pensions is small. For this reason, retirement in Quebec must be planned for a lifetime. Quebecers contribute to private pension plans: supplemental pension plans (called pension funds), locked-in pension accounts (LIRA) or life income funds (LIF). Some employers allow their employees to contribute to personal pension plans, which are generally attractive.