Is the Quebec pension system really simpler, fairer and more respectful of individual freedoms than the French system? It is not so. The Quebec pension system is actually not very protective.
Thus, the freedom to retire at the age you want is entirely theoretical. One could indeed object that a construction worker or a nurse’s aide with damaged backs or who suffer from musculoskeletal disorders are perhaps less free to work until the age of 70 than a mathematician…
A quick glance at the site of the Quebec Pension Plan then teaches us that the assertion that it would be possible to retire at 55 is false. Indeed, you not only have to wait at least 60 years to receive your retirement pension, but it will also be greatly reduced, “normal retirement age” being set at age 65.
A higher poverty rate
This discount mechanism is not neutral since the maximum monthly amount that a 60-year-old newly retired person can receive in 2023 is 836.20 Canadian dollars. [environ 568 euros] against 1,306.57 Canadian dollars [environ 887 euros] for a 65-year-old newly retired, i.e. a discount of more than 36%.
This freedom is therefore quite relative, the Quebec system offering no more possibilities on this point than the French system, which also allows people to work in the private sector up to the age of 70, or even beyond.
The aforementioned example also highlights another aspect of the Quebec system, namely the low level of pensions received by retirees, which are capped at extremely low levels. The amount of the monthly annuity is in fact between 25% and 33% of the average contribution income, provided that you reach 65 years of age to receive your retirement, because, otherwise, the discount mechanism will apply.
To illustrate this, an employee who would have received the median French salary of 1,850 euros net per month, i.e. a “super gross” salary [ce qui correspond au salaire net + cotisations salariales + cotisations patronales] of approximately 3,200 euros per month, throughout his career and who would retire at age 65 (therefore would probably have contributed more than 43 annuities) could hope to receive, with the rules of the Quebec system, a pension of between 803 euros and 1,060 euros, knowing that the minimum old age in France is 961 euros… This weakness in pensions is also reflected in an poverty rate of over 65s three highest in Quebec just in France (around 10% compared to 3.4% in 2016).
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