CANADA - Many people want to work past retirement age and barriers preventing that must be removed, Bank of Canada governor David Dodge has claimed.
Speaking yesterday to the Calgary Chamber of Commerce, Dodge stressed the need to recognise changing demographics meant there would be fewer young people in the labour pool to draw upon.
“We must therefore learn to concentrate on making the most of our experienced and trained workers,” said Dodge.
“Many individuals may wish to remain active in the labour force well past the conventional retirement age, and to increase our flexibility, it's important that we remove any barriers to their continued participation.”
He also called on employers to hire more mature workers, “ensuring intellectual capital is not lost”.
Dodge has made a number of statements highlighting the nation’s pension problems.
Most recently, he claimed pension regulation in Canada did not provide appropriate incentives for employers to maintain their defined benefit pension schemes and led to increased deficits.
He added the current regulatory framework actually provided a number of disincentives for firms to establish or maintain DB pension plans.
“These disincentives, along with recent low long term interest rates, have led to increased solvency deficits among many DB plans,” he said.
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