Globe editorial: Subsidies to rich seniors make no sense
www.theglobeandmail.com
The cost of Old Age Security payments is set to soar this decade, putting an increasing strain on Ottawa’s finances

The OAS bonus is being given to well-off seniors. As more and more affluent Boomers retire, that’s going to put a strain on federal finances.

(Note that OAS is different from GIS, which is available to low income seniors)

Last year, the Liberals boosted OAS by 10 per cent for seniors 75 years and older, claiming it would help poorer senior citizens. That claim is nonsensical – if the government wished to help poor seniors, it already has a tailor-made program at hand: the Guaranteed Income Supplement. (The income cutoff point is much lower than for the OAS, just $21,456 for individuals.) Any OAS reform should start with scrapping that 10-per-cent increase and targeting those funds narrowly to low-income seniors who receive the GIS.

Last year, the federal government spent $69.4-billion on elderly benefits. That will jump to $101.3-billion in fiscal 2029.

Clawbacks of the benefit ($8,492 a year) start when an individual’s taxable income reaches $81,761 but even those making up to $134,626 receive reduced payments, or $137,331 for seniors over 75 whose OAS entitlement is increased by 10 per cent. For individuals who deferred receiving OAS in exchange for higher monthly payments, that ceiling is considerably higher, around $170,000. And those clawbacks are assessed on an individual, not a household. A household made up of two seniors eligible for the maximum OAS could have a combined income of about $340,000 and still receive a small monthly payment from Ottawa.

  • @RaoulDook@lemmy.worldEnglish
    -3•1 year ago

    Being upset about that small benefit going to people who already have some money is nothing but crabs in a bucket mentality.

    Do you complainers not want to have income security when you get old too? This is a good thing for those old people. There are plenty of other more serious issues to be concerned about.

    • oʍʇǝuoǝnu
      10•1 year ago

      I don’t want it if I don’t need it. Considering where this country is at with housing, education, transportation, food, etc. I think those billions going to well off seniors rather than back into communities that will make life better for everyone is fucked.

      • @cheese_greater@lemmy.worldEnglish
        2•1 year ago

        All that is necessary is to update the TaxCode so individuals do all the work to self-police and take on legal liabillity if they lie. Then CRA just has to update their internal calculations, this is not anywhere near a complicated or precarious problem to resolve.

    • @cygnus@lemmy.ca
      2•1 year ago

      Exactly. Nevermind all the corporate tax evasion, let’s focus on seniors bringing in triple-digit benefits a month!