Mandatory retirement can't be justified on economic or social grounds, and the laws upholding this bastion of "age discrimination" are poised to face legal challenges, a report says.

The C.D. Howe Institute, one of Canada's leading economic think tanks, says it is wrong to discriminate against older workers, and added that increasing Canada's pool of seasoned employees will help the country deal with emerging labour shortages and looming financial stresses.

Experience in jurisdictions, such as Manitoba and Quebec, that have banned mandatory retirement shows that the adverse affects promised by critics have not developed, the document adds. The report, written by Jonathan Kesselman, a public policy professor at Simon Fraser University in Vancouver, said even mandatory retirement that is supported by workers' contracts shouldn't be allowed.

"In an earlier era, it was commonly argued that married women should stay out of the work force to preserve jobs for men," the report says. "This is no different than the contemporary argument that older workers should retire to make way for young job seekers."

The C.D. Howe report argues that mandatory retirement proponents have failed to consider that: 

Some workers, particularly women and recent immigrants, may not want to retire;

Workers often don't have the foresight in their early years to accurately forecast their financial needs later in life;

The economy suffers when workers are forced to leave the labour force;
Workers, employers, and the overall economy do not, as has been previously argued, get an important benefit from mandatory retirement.

The report marks the latest sign of momentum for those arguing against mandatory retirement. 

Less than six months ago, Prime Minister Paul Martin said he hates the idea of forcing people to quit working because of their age. Mr. Martin, who turned 65 late last year, said he would like to run the country for 10 years, although his party's recent tumble in public opinion polls has put that goal in severe doubt.
"I think people should be allowed to work as long as they want to work and as long as they can make a contribution," he said.

Mr. Martin was also talking about seniors yesterday, announcing a package of proposals designed to lure the support of older Canadians. The package included more money for those taking care of seniors or disabled family members, a doubling of income tax deductions for some medical expenses, and an increase in the guaranteed income supplement, a program to help seniors in poverty.