Main menu:

History of RPE Thought

Posts by Tag

RSS New from the CCPA

  • A critical look at BC’s new tax breaks and subsidies for LNG May 7, 2019
    The BC government has offered much more to the LNG industry than the previous government. Read the report by senior economist Marc Lee.  
    Canadian Centre for Policy Alternatives
  • The 2019 living wage for Metro Vancouver April 30, 2019
    The 2019 living wage for Metro Vancouver is $19.50/hour. This is the amount needed for a family of four with each of two parents working full-time at this hourly rate to pay for necessities, support the healthy development of their children, escape severe financial stress and participate in the social, civic and cultural lives of […]
    Canadian Centre for Policy Alternatives
  • Time to regulate gas prices in BC and stop industry gouging April 29, 2019
    Drivers in Metro Vancouver are reeling from record high gas prices, and many commentators are blaming taxes. But it’s not taxes causing pain at the pump — it’s industry gouging. Our latest research shows that gas prices have gone up by 55 cents per litre since 2016 — and the vast majority of that increase […]
    Canadian Centre for Policy Alternatives
  • CCPA welcomes Randy Robinson as new Ontario Director March 27, 2019
    The Canadian Centre for Policy Alternatives is pleased to announce the appointment of Randy Robinson as the new Director of our Ontario Office.  Randy’s areas of expertise include public sector finance, the gendered rise of precarious work, neoliberalism, and labour rights. He has extensive experience in communications and research, and has been engaged in Ontario’s […]
    Canadian Centre for Policy Alternatives
  • 2019 Federal Budget Analysis February 27, 2019
    Watch this space for response and analysis of the federal budget from CCPA staff and our Alternative Federal Budget partners. More information will be added as it is available. Commentary and Analysis  Aim high, spend low: Federal budget 2019 by David MacDonald (CCPA) Budget 2019 fiddles while climate crisis looms by Hadrian Mertins-Kirkwood (CCPA) Budget hints at priorities for upcoming […]
    Canadian Centre for Policy Alternatives
Progressive Bloggers

Meta

Recent Blog Posts

Posts by Author

Recent Blog Comments

The Progressive Economics Forum

Raising The OAS Eligibility Age Would Raise Poverty in Old Age

Canadian Press have put out a story based on a research paper by Richard Shillington which was commissioned by HRSDC from Informetrica, and obtained by the CLC through an Access to Information request.

Receiving OAS is required to makes seniors eligible for the GIS top up, which provides one in three seniors with a supplement which ensures they have a minimally adequate income in old age.

Raising the retirement age from age 65 to age 67 or higher would impact all future seniors, but would especially impact those who would qualify for the GIS supplement. Many older workers, especially the single, near elderly, already face very high rates of poverty.

As shown in Table 1, the OAS now contributes about one quarter of the incomes of Canadians aged 66 and 67, and the OAS and GIS in combination contribute about one third. The proportion of income replaced by the OAS/GIS is much higher for women and seniors with low incomes, about 70% for those with individual incomes of less than $15,000.

 

Table 1: OAS/GIS Contributions to the Income of Seniors (2006)

OAS OAS / GIS / Allowance



Age 66 26% 34%
Age 67 27% 36%



Women 65-69 29% 38%
Men 65-69 19% 26%



All Seniors 26% 36%



$5-$10,000 59% 71%
$10-15,000 37% 66%
$15-20,000 31% 49%
$20-25,000 25% 28%
$25-30,000 20% 21%
$50-55,000 10% 10%
$95-100,000 1% 1%



Source: Evaluation of the Old Age Security Program: Summary Report based on the LAD. Prepared for Human Resources and Skills Development Canada by Informetrica Limited, March 2009. Tables 24 and 25.

As shown in Table 2, the OAS/GIS makes a huge contribution to the reduction of poverty in old age. OAS/GIS reduces the low income rate (defined by the LIM Before Tax measure) from about 30% to about 12% (more for women than men).

Table 2: OAS/GIS Contribution to the Reduction of Poverty

Before After



Age 66 30% 12%
Age 67 32% 12%
Women Age 65-69 35% 14%
Men Age 65-69 27% 11%



Poverty Measure is Low Income Measure Before Tax (below one half of median adjusted for family size).
Source: Evaluation of the Old Age Security Program: Summary Report based on the LAD. Prepared for Human Resources and Skills Development Canada by Informetrica Limited, March 2009. Table 42.

 

Raising the age of eligibility for OAS/GIS would require future seniors with low incomes — those who would qualify for the GIS — to either save more, work much more hours, or to live in poverty. Saving more is not a realistic option for low income workers. And working longer is not a realistic option for many low income seniors who are in poor health, have a disability, or are providing care.  About one in four current retirees retired due to ill health.

Raising the age of eligibility for OAS/GIS would also mean that non-working, low income seniors on provincial social assistance and disability programs would have to wait to transition to OAS/GIS, raising social assistance costs for provincial governments. Costs of providing drugs and essential services to low income seniors unable to pay on their own would also increase

 

 

Enjoy and share:

Comments

Comment from Trudie Major
Time: July 26, 2012, 7:08 am

My sister lives in Buckingham, Quebec. She is a low income senior. She receives OAS, Regent de rent, and the supplement.
And she pays rent.
My question is, if she cannot afford new eye glasses if needed, and to replace her dentures, are there Essential Services to help her with this.
Can you please let me know. As we here in Ontario
have this benefit. Much appreciated.

Write a comment





Related articles