OAS changes to hit the most vulnerable

Two years of benefits for Canada’s retirees are at stake today as Members of Parliament returned to Ottawa for the first day of session in the new year. 

Unless the government reconsiders, the Old Age Security income supplement will not be available until a person reaches age 67.  This is up two years from the current 65.

“It’s age discrimination in its worst case,” says Dennis Lewycky, executive director of the Social Planning Council of Winnipeg. 

He says that the loss of the OAS between 65 and 67 may not be an issue for people with retirement planning beyond the Canada Pension Plan, “but for those on a fixed income, it’s going to be a big hit.”

 “It’s the difference between buying groceries and going to Winnipeg Harvest or between merely existing and going to visit grandchildren.”

He says people who need to be concerned with the change are beyond those in their mid-60s. “By the time people hit 50 or 55 and start retirement planning, there is a psychological hit.  If they roll back these two years, are they going to roll back the amount?” 

Marilyn Kelly is a 62 year old who hopes to retire this year.  She has spent the past 30 years working for Manitoba Public Insurance and hopes her employer pension will be adequate.

She could opt to work a few more years, but she says she won’t. Her house is already paid for and she wants to enjoy her life instead of working.  “I think if I did, my health would deteriorate,” she says, “I don’t think I should push my luck.”

But Kelly understands what the Harper government is trying to achieve.  “I can see the government’s point, they need the money,” she says, “but I hope they give us some time to make a decision.”

Harper addressed the matter when asked about it by Official Opposition leader Nycole Turmel during question period. 

“This government received a mandate to gradually reduce our deficit to zero,” said the Prime Minister, “At the same time, we will ensure that our vital programs are sustainable for the long term and for future generations.”

Lewycky offers an alternative method for the government to save the money that would otherwise be paid out in the income supplement.   “Take from who can afford rather than those who cannot.  Anyone worth more than a million dollars shouldn’t get OAS.”