Mandatory Retirement in Global and Canadian Perspective

Student Name:

Institution Name:

Professor Name:

Date:
 Executive Summary

Mandatory retirement is a controversial topic that influences various aspects of an organizational

lifestyle. This essay aims to examine the challenges and effectiveness in these variations through

global and Canadian perspective. The essay will analyze current retirement conditions in

different countries and the factors influencing the implementation of mandatory retirement. The

discussion will be followed by a personal reflection on whether mandatory retirement is a good

idea.
Table of Contents
Current Retirement Condition in Different Countries.....................................................................4

Factors Influencing Mandatory Retirement................................................................................5

Retirement Condition in Canadian Landscape................................................................................5

Succession Planning...................................................................................................................6

Mandatory Retirement in Global and Canadian Perspective

 Retirement is a procedure that affects individuals as well as organizations in terms of

work environment, skills, and goals. Some organizations adapt to mandatory retirement policies,

where employees must retire at a certain stage regardless of their performances or preferences.

Several countries have adopted this policy due to various reasons such as economic, social, or

legal factors. However, these factors have a significant influence on different organizational

aspects like succession management, employee satisfaction, productivity, and innovation.

Through this essay, we will analyze the current state of retirement scenarios globally, as well as

Canada. We will discuss about the factors influencing implementation of mandatory retirement

as well as implications of succession planning in Canada. The paper concludes with a personal

reflection of whether it is a good idea or not, followed by some recommendations for effective

succession management.

Current Retirement Condition in Different Countries

The retirement condition in various countries is dependent on various factors such as

economic, social, legal, and cultural. There are some countries that offer higher retirement age as

compared to others, while some countries have abolished mandatory retirement altogether. For

instance, the retirement age in Greece was 67 (Retirement Age by Country 2023, n.d.), whereas

in Canada, it ranged from 55 to 64 depending on the state (Messacar & Kocourek, 2019). On the

other hand, there are some countries that offer benefits such as pensions, health care, or flexible

working conditions to motivate them to stay longer in the workforce (Retirement Age by Country

2023, n.d.).

Factors Influencing Mandatory Retirement

There are several complex and multifaceted factors that influence the conditions of

mandatory retirement in different countries. This involves demographic factors such as

population ageing and life expectancy rate as well as health factors such as physical and mental

wellness. Social factors such as family and community support including social participation

through civic engagement and volunteerism are among those considered. Similarly, work

characteristics such as job satisfaction and career development as well as financial factors like

income and security savings may also affect the implementation of retirement. Some

organizations in different countries also focus on retirement preferences of an individual such as

personal goals and values while strategizing mandatory retirement. Lastly, a few countries may

also monitor the macro effects like economic growth and labor market condition for

implementing mandatory retirements in an organization (Scharn et al., 2018).

Conclusively, I have analyzed that cultural values can play a substantial role in shaping

retirement regulation. Regardless understanding the significance of tension between youth and

experience, the manifestation of this procedure may differ across different cultures.

Retirement Condition in Canadian Landscape

The concept of retirement and pension in Canada is followed by a long and complex

history influenced by various economic, social, legal, and cultural factors. The public pension

programs in 1908, 1952 and 1965 offered financial benefits to seniors above 60 (Barcelon,

2021). Additionally, many Canadians also rely on private savings, workplace registered pension

plans, RRSPs, TFSAs, and various sources of income to support their retirement (Omololu, 2023

& Pinkasovitch, 2023).

Presently, these conditions vary depending on the region, industry, gender, occupation, age,

health status and numerous other factors of these retirees. Canadian life expectancy of 82.1 years

possesses significant challenges such as intergenerational inequality, health care costs, income

security, and social inclusion as they age (Omololu, 2023 & Public Pensions, 2023). The lack of
succession planning among about 66% of Canadian producers also pose risk for their businesses’

continuity and sustainability (Innovation, Science and Economic Development Canada, 2023).

Succession Planning

Eliminating mandatory retirement in Canada has resulted in disrupting traditional

succession and management practices. With the help of succession plannings, organizations can

retain and develop talent, manage transfer of knowledge, enhance performance, and achieve

strategic goals through risk mitigation (It’s Never Too Early To Plan for Business Succession,

n.d.). Furthermore, career-motivated individuals can increase their job satisfaction, improve

competency skills, expand network, and prepare themselves for retirement (Sweeney, 2023).

Organizations can implement succession planning at different levels such as individual, team,

department, division or organizational level through effective mentoring, coaching, training and

strategic succession planning (Building a Succession Plan, 2022).

Personally, I believe that the elimination of mandatory retirement aligns with a

progressive and inclusive workforce of Canada. However, a paradigm shift in organizational

strategies must be addressed to sustain the challenges in the ageing workforce.

In conclusion, regardless of diversity in global retirement policy implementation, I

believe that this concept is somewhat outdated by harnessing valuable experience within the

workforce. As observed in Canada, the shift towards age-neutral policies can be considered as a

positive step towards a more inclusive and dynamic work environment. Through effective and

strategic succession planning, organizations in Canada can retain and develop talent for their

overall growth.
 References

Barcelon, S. (2021, October 26). Retirement Through the Ages: A History of Pensions and
policies. Longevity. https://www.retirewithlongevity.com/resources/retirement-through-
the-ages-a-history-of-pensions-and-policies
Building a succession plan. (2022, September 27).
https://www.cfib-fcei.ca/en/tools-resources/building-a-succession-plan
Innovation, Science and Economic Development Canada. (2023, October 26). Pensions and
retirement. Canada.ca. https://www.canada.ca/en/services/finance/pensions.html
It’s never too early to plan for business succession. (n.d.). TD.
https://www.td.com/ca/en/business-banking/small-business/succession-planning/creating-
a-succession-plan
Messacar, D., & Kocourek, P. (2019). Pathways to Retirement, Well-Being, and Mandatory
Retirement Rules: Evidence from Canadian Reforms. Journal of Labor Research, 40(3),
249–275. https://doi.org/10.1007/s12122-019-09292-1
Omololu, E. (2023, September 11). Early Retirement in Canada: What You Need To Know in
2023. Savvy New Canadians. https://www.savvynewcanadians.com/early-retirement-in-
canada/
Pinkasovitch, A. (2023, November 5). Retirement in Canada vs. U.S.: What's the Difference?
Investopedia. https://www.investopedia.com/articles/retirement/11/difference-retiring-
canada-america.asp
Public pensions. (2023, July 20). Canada.ca.
https://www.canada.ca/en/services/benefits/publicpensions.html
Retirement age by country 2023. (n.d.).
https://worldpopulationreview.com/country-rankings/retirement-age-by-country
Scharn, M., Sewdas, R., Boot, C. R. L., Huisman, M., Lindeboom, M., & Van Der Beek, A. J.
(2018). Domains and determinants of retirement timing: A systematic review of
longitudinal studies. BMC Public Health, 18(1). https://doi.org/10.1186/s12889-018-
5983-7
Sweeney, B. (2023, January 1). Success through Succession: A Review of Recent Literature.
Industrial Relations Centre - Queens University. https://irc.queensu.ca/success-through-
succession-a-review-of-recent-literature/