Incomes and hardship in early transitions to retirement

Canada and other countries are changing the age for public pension eligibility. A policy concern is the welfare of those individuals exiting the labour force before the age of pension eligibility. This study, through the use of the Survey of Labour and Income Dynamics data, addressed early retirements by (a) examining the incomes of those who are not working at near-retirement ages, and (b) examining how these Canadians avoid economic hardship. It found that around three-quarters of those not working have been able to avoid low-income status. Most important for avoiding low income are other family income sources, good health, and employment-related pension income.