Impact of abolishment of mandatory retirement on BC employment income

Amendments to the provincial Human Rights Code effectively abolished mandatory retirement in BC in 2008. Additionally, the Canadian population is aging. The seniors, 65 years of age or older, constitute the fastest growing population group. These facts are expected to have an impact on the insurance and pension industry as well as on social programs. In this project, we study the total employment income in BC. The total income in BC is projected, first, using pre-legislation retirement rates and secondly, using post-legislation retirement rates that are based on a survey of Canadian workers. The workforce is projected using a two-decrement model, with death and retirement as the two causes of decrement. Average annual salaries by age are then applied to the projected workforces to get the total income in BC. Prediction intervals are calculated and sensitivity analysis is performed for some of the key assumptions.