he retirement age in Quebec should be pushed up to 67 from 65 within 12 years, and the encouragement of early retirement should be stopped immediately, an economist says.

The moves will be needed to counteract the effect of an aging population on the workforce and to help maintain the integrity of current retirement plans, says Norma Kozhaya of the Montreal Economic Institute.

“It is essential to start the necessary reforms right away before demographic phenomena lead to lower economic growth that will reduce wealth creation in Quebec,” says Kozhaya.

In a report issued Monday, Kozhaya said Quebec Pension Plan payments should be raised by 0.7% rather than the current planned increase of 0.5% for retirements taken after age 65. Retirees before 65 would also see their payments reduced by a similar percentage.

The United States and Germany have already adopted higher retirement ages, while the United Kingdom is in the process of boosting the age of retirement to 68.

Kozhaya said Quebec’s average age is 60.1, compared to the Canadian average of 61.5 and 62 in Ontario. With the aging of the population, the proportion of people in Quebec aged 65 and over is expected to go from its present 14% to 25% in 2031.