Quebec eliminates tax credit for workers aged 60 to 64

Quebec workers aged 60 to 64 will lose access to a tax credit introduced in 2012 to encourage older workers to remain in the workforce.

The decision, announced Thursday by Quebec Finance Minister Eric Girard, is part of a broader review of government spending aimed at achieving a balanced budget by the 2029-30 fiscal year, according to a report from The Canadian Press (CP).

The tax credit, which provided an average annual benefit of $1,000 for eligible workers, was designed to incentivize those nearing retirement to delay leaving the workforce.

However, “since the tax credit was introduced, Quebec has caught up in the labour market participation of these people,” Girard said, according to a report from City News.

"For people between the ages of 60 and 64 years old, the historic gap that existed with Ontario has practically disappeared," he said. 

Nearly 200,000 60- to 64-year-olds are expected to lose out on an average of about $1,000 per year due to the changing eligibility.

Girard noted that the average retirement age in Quebec from just over 61 in 2011 to 64.7 in 2023.

Amid the rising cost of living, Canadians are struggling to save up for retirement, according to a previous report. Overall, one-third of Canadians say they are having trouble planning for retirement. And the cost of living is negatively impacting their retirement savings, say 75% of Canadians in the Sun Life survey.

Over half of workers are falling behind on retirement savings, according to a previous Manulife report.