Media are speculating that the federal Government may make changes to Old Age Security.
The following comments use the following two rules of disinformation Invoking authority and the Rule of Become incredulous and indignant,
- 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 OAS program was built when Canadians were not living the longer, healthier lives they are today.
- Consequently, the cost of the OAS program will increase from $36B per year in 2010 to $108B per year in 2030.
- Meanwhile, by 2030, the number of taxpayers for every senior will be 2 - down from 4 in 2010.
Alternative analysis from the galloping beaver and The Bulldog are interesting reads at this point
The Old Age Security only consumes about 2.41 per cent of GDP, much lower than in most countries. In 2031 at the top of the baby boom retirement demographic, the OAS will consume only 3.14 per cent of GDP. That’s a lot of money, but it is not a catastrophe. Source: The Bulldog by Ken Gray
The Cons' estimated total cost is about $108 billion. But based on Statistics Canada's medium-case demographic estimates, seniors ages 65 and 66 will make up only 11.5% of the total population aged 65 and up as of 2031.
So if OAS is relatively evenly applied across the age spectrum, the savings from pushing back the retirement age for Canadians in general will amount to 11.5% of $108 billion - or just over $12 billion per year.
Then he takes aim at the real plan. The Harperites promised that, once they have balanced the budget, as long as you have a large enough income, you can increase the amount of money you put into a Tax-Free Savings account from the current $5,000 to $10,000 annually.
At the same time, the Cons plan to push through general income splitting and increases to tax-free savings accounts. And those plans - targeted squarely at large-single-income households and those wealthy enough to have $10,000 to sock away every single year - will cost...just under $12 billion per year. And unlike the Cons' numbers for OAS, that's without taking into account any growth in the size of the tax base in the meantime.
Just so we're clear here, the cost of the Harper frat-boys' plan to allow income splitting in high-earning-single-income households and to double the amount that those with a spare ten-thousand bucks laying around can shelter from interest and investment income taxes is about the same as would be saved by forcing seniors to delay an old age benefit until they reach aged 67. Source: http://thegallopingbeaver.blogspot.com/ .
Since 2006, we have:
- Increased the Guaranteed Income Supplement for the most vulnerable seniors
- Introduced pension income splitting and increased the age credit
- Introduced innovative new programs such as the tax-free savings account and the PRPP to help Canadians save for retirement.
We know the Opposition will attack any adjustments to the OAS program.