Are you a Federal Government Employee? The New Proposed Incentive Could Change Everything

If you’re a Federal public servant who hasn’t taken a deep dive into your pension yet - but the talk of an early-retirement incentive has your attention - this is your moment to get serious. A strong retirement plan doesn’t fall into your lap. It’s built over time, and it evolves with intention.

And if this incentive passes January 15th, the window to act will be short. That means you’ll want your facts in hand before the clock starts ticking.

Official details are here:
https://www.canada.ca/en/treasury-board-secretariat/services/pension-plan/news-notices-pensions-benefits/proposed-early-retirement-incentive.html

What the Proposed Incentive Actually Means (Plain Language)

The big headline:

Eligible employees could retire early with an immediate, unreduced pension.
No early-retirement penalty. No reduction for collecting sooner.

Here’s how eligibility breaks down:

• If you joined the public service on or before Dec 31, 2012
  You must be 50+, with 10+ years of employment and 2+ years of pensionable service.
  

• If you joined on or after Jan 1, 2013
  You must be 55+, with the same service requirements.
  

If approved, implementation is expected by January 15, 2026, or as soon as legislation comes into force. After that, the program will run for roughly 300 days - about ten months. That’s not a lot of time.

If you’re close to qualifying, or you already qualify, this is your prompt to pay attention.

Why This Matters — and Why You Shouldn’t Wait

For years, the main drawback of leaving early has been the reduced pension. This incentive changes that.

Here’s what it opens up for you:

• Flexibility: Retire earlier without a financial haircut.

• Choice: Move into part-time work, consulting, passion projects, or simply a slower pace of life.

• Intention: A defined deadline pushes you to plan rather than delay.

• Opportunity: This won’t be a permanent option. Missing the window could mean missing the chance.

Retirement isn’t only about money. It’s about the life you want on the other side of work. This incentive could accelerate your timeline - if it fits your goals.

Your Action Plan — What to Do Right Now

You don’t need to decide today. But you do need to get informed today.

There are a LOT of moving parts in a Retirement plan but we can help you get the pieces in hand so you can start making informed decisions!

Sign up for our 6-week Retirement Picture and Frame series starting Dec 27th.

One hour per week over 6 weeks and ALL your ducks will be in a row.