February 11, 2012
Securing Old Age Security
Fewer working taxpayers will
put strain on OAS by 2030
Released by Robert
Pearsall, PA to Chilliwack-Fraser MP Mark Strahl/file photo
light of recent media speculation, many seniors have been asking me if their
Old Age Security (OAS) cheque will stay the same. Other Canadians close to
retirement have been asking whether OAS will be there for them when they
reach the age of 65.
The answer to both questions is yes.
The Conservative Government is committed to protecting retirement income for
today's seniors and for future generations to come. While the Canada Pension
Plan (CPP) is funded by premiums from each of our paycheques and is safely
invested to meet the needs of future retirees, OAS is funded from general
government revenue -the program is paid for by current taxpayers. Here is
why this is going to be a problem:
In 1975 there were seven working taxpayers for every senior. Today there are
only four working-age Canadians for each senior. By 2030, there will only be
two working-age Canadians for each senior. The annual cost of OAS is
projected to increase from $36 billion in 2010 to $108 billion in 2030.
Fewer working taxpayers supporting more recipients will put enormous
pressure on government finances in the future.
The Managing Director of the MacDonald-Laurier Institute, Brian Lee Crowley,
stated, "The federal government currently spends about 15% of all spending
on OAS/GIS and that's supposed to be go up to about 25%. But if you're going
to put up spending on that by 10 percentage points of everything the federal
government spends, you're going to have to either put up taxes or make some
cuts somewhere else."
The Conservative Government will take responsible action to ensure financial
stability for future generations of seniors.
We have been very clear. If you are currently receiving OAS benefits you
will see no changes. Nor will there be any changes for Canadians nearing
retirement. Canadians not near retirement will have ample time to plan for
Government House Leader, Peter Van Loan said, "All seniors should rest
assured; those who collect OAS today will continue to collect it without any
change. Our focus is on the medium and long-term and ensuring the
sustainability of the system..."
The Conservative Government values the life-long contributions seniors have
made in building this country and will continue to protect their retirement
income as we move forward to address the challenges that lay ahead.
© Copyright (c) 2012 The Valley Voice