Probing the future of mandatory retirement in Canada

The future of mandatory retirement is at least partly driven by the changing demographics. In Canada, these demographics include slowing population growth, rapid ageing, declining rates of labour force participation, and slowing growth of the labour force. After reviewing the demographic trends and considering alternate scenarios in labour force participation, we consider the determinants of early departures from the labour force, and suggest scenarios that might reverse these trends. With a decline in labour force entrants, delays in early life transitions and possible reductions in retirement benefits, a trend to retire later would bring mandatory retirement into question. 1