Speculation into potential adjustments to Old Age Security (OAS) has many Canadians asking questions about the current status and future of the federal government's financial retirement assistance program.
"We need to be perfectly clear about any changes being considered," said Garry Breitkreuz, Member of Parliament for Yorkton-Melville. "No one currently receiving Old Age Security cheques will be affected, nor will anyone who is nearing retirement, but Canadians must understand that changes need to be considered or there will be no OAS for future generations."
Currently there are two federal programs in place to provide financial assistance to older Canadians: Old Age Security and the Canada Pension Plan (CPP). The CPP is funded through premiums that working Canadians pay with each paycheque. It is also on a secure and sustainable path and therefore does not need to be changed. The OAS, however, is funded primarily through taxes paid by working people and is unsustainable on its current course. A few simple facts:
- The number of Canadians over the age of 65 will increase from 4.7 million to 9.3 million over the next 20 years.
- The cost of the OAS program will increase from $36 billion per year in 2010 to $108 billion per year in 2030. Today's entire federal budget is $237 billion.
- By 2030, the number of taxpayers for every senior will be two, down from four in 2010.
"When Old Age Security was established in 1952, it was for Canadians aged 70 and older," said Breitkreuz. "Many changes have been made to OAS over the past 60 years. The changes we are hearing about now are ones that will allow OAS to remain in existence for generations to come."
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