Opting for phased retirement

Combining work and retirement can be to your advantage. Discuss it with your employer. With the impending labour shortage, your employer could offer you incentives to encourage you to prolong your career. Such an agreement could encompass your pay, your work hours or phased retirement.

The advantages of phased retirement

Here are some of the reasons why workers choose phased retirement:

• make a smooth transition between work and retirement
• combine employment earnings with a retirement income
• continue to work while making use of their expertise.

The advantages vary depending on your agreement and situation. Check with a financial planner to gauge their impact on your income and pension plan.

Tailor-made phased retirement

Your employer can offer you one of the phased retirement measures under the:

• Québec Pension Plan
  • for workers age 60 to 65: early retirement
  • for retirees age 60 and over who work: the retirement pension supplement
  • for workers age 55 to 69: agreement on contributions during phased retirement

• your pension plan (also called pension fund), whether it is a:
  • defined-benefit plan
  • defined-contribution plan
  • simplified pension plan (SIPP)

Other useful links

• Work income kept on retirement  (Ministère des Finances)