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Archive for 'Old Age Security'

Later Retirement: A Win – Win Solution?

The C D Howe Institute have put out a study on later retirement by Peter Hicks, a former senior official with HRSDC and the OECD who has written a lot on the policy implications of ageing societies. I find this to be one of his less convincing efforts. The argument – with parenthetical comments – […]

How Much Will YOU Lose from OAS Deferral??

Announcing a bad policy 10 years in advance doesn’t make it a good policy. So the fact that the Harper government is giving people at least 10 years to prepare for 2 years of life without an important source of income, hardly makes it OK — as so many media commentators have tritely implied.  In […]

OAS, the Budget and the Baby Boomers

The Budget justifies raising the age of eligibility for OAS and GIS on the grounds that  the long-term fiscal sustainability of the program is being undermined by rising life expectancy. No estimates of savings are provided. They will be very modest. Given that average life expectancy at age 65 is 20 years, raising the eligibility […]

Budget 2012: Pennywise But Pound Foolish

Marc, Andrew and Toby have posted substantial analyses of yesterday’s federal budget and I have some comments in today’s Hamilton Spectator. My two cents about the budget’s economic forecasts follow. Table 2.1 envisions a 7.5% unemployment rate this year, slightly above last year’s rate of 7.4%. That seems like an admission of failure from a […]

The Illusory Savings of Hiking the Age of Eligibility for OAS

Former Assistant Chief Statistician Michael Wolfson shows that governments collectively stand to save very little from hiking the age of eligibility for the OAS/GIS, a measure that is widely expected to be in Thursday’s Budget. The math (based on the SPSDM): In 2011, cutting OAS/GIS from seniors age 65 and 66 would save the federal […]

Stapleton on Harper’s Proposed OAS/GIS Changes

John Stapleton has an opinion piece out on Prime Minister Harper’s proposed changes to Old Age Security (OAS) and the Guaranteed Income Supplement (GIS). I find the following quote from Stapleton to be particularly troubling: By providing OAS and GIS at age 65, Canada has greatly reduced the incidence of poverty among seniors. By moving the […]

Old Age (In)Security

Here is an overview of today’s timely Canadian Centre for Policy Alternatives paper on Old Age Security: Old Age Security (OAS) is the basic building block of Canada’s retirement income system. Canadians build on that foundation, saving for their retirement with benefits from the Canada or Quebec Pension Plan, a workplace pension if they’re lucky […]

Diane Finley’s Demographics

On CTV yesterday, human resources minister Diane Finley said (45 seconds into this interview): “As we go forward, we’re going to have three times the expense in Old Age Security as we do now, but we’re only going to have half the population to pay for it.” That sounds pretty scary. If the total cost […]

The OAS Eligibility Age and Employment

It is argued that eligibility for OAS/GIS discourages older Canadians from remaining in the workforce, and that we need to keep them working to avoid labour shortages and a sharp rise in the so-called dependency ratio. But the fact of the matter is that 65 is not the trigger for retirement that it used to […]

Is The OAS/GIS Program Unaffordable?

No. Of course not. Even if the government waves around scary large increases in nominal dollar terms. As has been widely reported, the most recent OAS actuarial report shows that total program expenditures will rise from $38.8 billion in 2011 to $107.9 billion in 2030. However, the dollar figure reflects, not just an increase in […]

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 […]

Low Income and the Age of Eligibility for OAS

To reprise a now topical earlier blog,  hiking the age of eligibility for OAS will have the biggest impact by far on future seniors who are in low income. Many if not most of this group are unable to work due to disability or ill health. If the age of eligibility for OAS and GIS […]

Hiking the Retirement Age is the Wrong Answer to the Retirement Crisis

Raising the age of eligibility for Old Age Security/Guaranteed Income Supplement (OAS/GIS) benefits is the worst possible way to deal with the retirement income security crisis facing Canadians. Experts such as former Assistant Chief Statistician Michael Wolfson project that one half of all middle income baby boomers face a severe cut to their living standards […]