Will OAS payments be there for seniors? “Yes,” says MP David Wilks
Posted by editor on February 6, 2012 · 6 Comments
MP David Wilks
I know many seniors have been asking one question recently – will my Old Age Security cheque stay the same? Many Canadians close to retirement have also been asking whether Old Age Security will be there for them when they reach 65. The answer to both questions is yes. The government is committed to protecting retirement income for today’s seniors, and for future generations of retirees.
We have taken important steps to support seniors, including:
- Increasing the Guaranteed Income Supplement for the most vulnerable seniors by $600 per year – the largest increase in 25 years. This measure improved the financial security and well-being of 680,000 seniors across Canada.
- Reducing taxes by introducing pension income splitting and increasing the age credit.
- Introducing innovative new programs such as the tax-free savings account and the PRPP to help Canadians save for retirement.
As a result of our actions, seniors can individually earn approximately $19,000 per year or $38,000 as a couple before paying federal taxes.
As well all know, Canadians receive retirement income from a variety of sources, including the Canada Pension Plan and Old Age Security. The Canada Pension Plan is funded by premiums from each of our paycheques and it is on a safe, secure, and sustainable path.
Old Age Security, on the other hand, is funded from general government revenue and is not sustainable in its current form. In 1975 there were seven working taxpayers for every retired Canadian. Because our population is getting older, today there are only four working-age Canadians for each senior.
By 2030, the total number of retirees will nearly double, leaving only two working-age Canadians for each retiree. Amidst these changing demographics, the annual cost of the Old Age Security program is projected to increase from $36 billion in 2010 to $108 billion in 2030. In short, the cost of Old Age Security is going up quickly and the number of working Canadians to pay for it is going down significantly. If changes are not made to the Old Age Security program, it will become unsustainable in the long-term. Failure to make important decisions now will put the program in jeopardy for future generations.
I can guarantee you that any changes to Old Age Security will never affect anyone currently receiving benefits, nor will they ever affect any individual now nearing retirement. Other Canadians, who are not near retirement, will receive substantial notice of changes to Old Age Security, to ensure they have ample time to plan for their future.
Our government will take responsible action to ensure financial stability for future generations of seniors and give them confidence that Old Age Security will be sustainable and available to them in their retirement.
David Wilks is the Member of Parliament for Kootenay-Columbia. You can contact him at:
Constituency Office
100 – B Cranbrook Street North, Cranbrook, British Columbia V1C 3P9
250-417-2250 (voice)
250-417-2253 (fax)
or via e-mail at david.wilks@parl.gc.ca
The OAS Actuary does not agree with the Conservative view of OAS sustainability. Read the Article here; http://www.theglobeandmail.com/news/opinions/opinion/lets-debate-oas-based-on-fact-not-perception/article2325809/
A report commissioned by the Conservative government did not recommend any changes to the OAS and stating that the OAS is sustainable; http://m.theglobeandmail.com/news/politics/research-belies-pms-warning-about-oas/article2320279/?service=mobile.
Oh don’t worry about what the OAS actuary thinks. If he disagrees with the HARPER GOVERNMENT he won’t be reappointed when his term expires.
Our Parliamentary Budget Officier also states there is ABSOLUTELY no problem with the sustainability of the OAS (and our health care) as they were. Link here; http://www.montrealgazette.com/sustainable+under+current+rules+says+budget+watchdog/6121783/story.html
Leif, I have read the articles which you post and although I agree with the sentiments expressed in them and the view point, I also and still have to wonder if you or anyone else but the supposed authors have actually read the originating documents / reports?
I for one will hold my view of these topics in abayance until I read the source docs. Rather than taking some other talking head’s opinion.
In other words, I tend to your viewpoint but I withhold judgement due to the questions that have been set in my mind over the years of the ” The Sky is Falling ” fear mongering groups out there. They, with their lies and their half truths, / half lies, force me to NOT understand which truth is which lie which is which truth. Get the point?
Even if they are talking heads that agree with your viewpoint.
So let us find the original docs and post those on the web to see what was REALLY said.
6 big Canada Pension Plan changes arrive in 2012
CBC News
The prime minister says that the Canada Pension Plan is ‘fully funded, actuarially sound and does not need to be changed,’ but a close look at the plan shows some alterations to the CPP are already underway.
The rules governing the Canada Pension Plan are updated regularly, but most years the changes are limited to simple increases to benefit payments and premiums. Not this year.
Ottawa is bringing in a raft of new or tweaked policies to reflect that retirement these days is more of a gradual transition for many people rather than a single event. Many of these changes either begin in 2012 or are entering the next phase-in period, and they’ll have a direct impact on the retirement plans of Canadians.
In some cases, the changes are big enough that people nearing retirement may want to have a chat with a financial adviser before deciding exactly when to apply for a CPP retirement pension…
The link to the full Article is here; http://news.sympatico.cbc.ca/home/6_big_canada_pension_plan_changes_arrive_in_2012/a95442d1
So unfortunately big changes are already underway as we speak WITHOUT the majority of Canadians being fully informed of them. Everybody should read the full article and understand how these changes affect them.