Quebec’s Liberal Party is hoping to convince the province’s seniors to keep working.
On Wednesday, Premier Philippe Couillard revealed a plan that would give incentives to older Quebecers to stay in the workforce longer. Included in that plan is increasing the eligible infome for the experienced worker tax credit from $1,000 to $12,000 and increasing the value of the tax credit by $200 up to a maximum of $670 starting at age 70.
The plan centres on tax breaks for seniors with lower incomes. Couillard said getting seniors back into the workforce is part of the solution for Quebec’s skilled labour shortage.
“The vast majority of seniors are healthy,” he said. “A lot of them would like to stay longer at work, even after they start receiving their pension, or return to work. In the current system, they won’t do it, because it doesn’t make sense financially. They will be taxed both on the pension and on their working income.”
Couillard said his government would invest $150 million into the plan if elected to a second term.
He also assured seniors that the plan would not come at the expense of their pension. The plan would allow seniors to postpone their pension to avoid being taxed. During the time of the suspension, the pension would accumulate, meaning it would be worth more once they decide to start collecting.
- With files from The Canadian Press
