3 reasons it's urgent to update OAS
Seventy-five years on, OAS is dragging down budgets, and letting down seniors and young people alike. Not even our Auditor General can say if the program is working. Clearly, it’s time for a reboot.
1. To get better bang for our buck
Nearly one-fifth of the federal budget goes to OAS, and costs are rising more than any other budget line item as Canada's population ages. Retired couples with incomes of $182,000 can get the full $18,000 OAS subsidy, while around 400,000 seniors still live in poverty. We can spend smarter.
2. To reduce ageism
Young people pay more taxes for retirement supports than today's seniors paid for their elders, but get less in exchange. Senior couples can have $100,000 more income than families with kids before benefits are clawed back - even though investments in young people's wellbeing are already lagging behind
3. To stop mortgaging the future
Governments decades ago didn't plan for the rising costs of population aging. By failing to put OAS on a fiscally sustainable path, they are now choosing to drive up deficits - and leaving the unpaid bills to our kids.
