Barrie, Ontario – As more seniors choose to remain in the workforce past the traditional retirement age of 65, they are faced with unexpected challenges related to changes in their employee benefits. Stephen Booth, a 66-year-old resident of Barrie, Ontario, found himself working in retail past 65 and grappling with the loss of some of his disability benefits due to cataplexy. The reduction in long-term disability insurance at age 65 is a common occurrence in many group benefit plans, designed to maintain the financial sustainability of these plans.
Sheila Burns, the director of health and public policy at the Canadian Life and Health Insurance Association, explains that historically, benefits would change around age 65 assuming individuals would leave the workforce and rely on other sources of income. However, with an increasing number of seniors opting to prolong their careers, the issue of diminished benefits is gaining more attention. According to Statistics Canada, about 900,000 people are working past the age of 65, leading to a growing awareness of this issue.
David Harvey, a 70-year-old from Burnaby, British Columbia, filed a pay equity complaint after discovering that some of his group benefits diminished post-65. Harvey’s case brings attention to the potential age discrimination faced by older employees who see a reduction in their benefits without a corresponding increase in their compensation. The rising cost of living and longer lifespans are prompting more seniors to remain in the workforce, highlighting the importance of fair treatment in terms of benefits and compensation.
Employers and workers have the option to purchase new coverage plans past age 65, although this may not always be financially viable. Burns emphasizes the importance of employees understanding their policies and employers effectively communicating any changes well in advance, to ensure a smooth transition as individuals approach retirement age. Despite the challenges, seniors like Stephen Booth find themselves navigating the complexities of reduced benefits while continuing to work to secure their financial future.
In conclusion, as the workforce continues to age and more individuals choose to work past traditional retirement age, the issue of changing benefits and potential age discrimination becomes increasingly relevant. It is essential for both employees and employers to proactively address these challenges to ensure fair treatment and financial security for older workers in the changing landscape of retirement.