OTTAWA – Leader’s Ledger – I know many seniors have been asking one question recently – will my Old Age Security cheque stay the same? Many Canadians close to retirement have also been asking whether Old Age Security will be there for them when they reach 65.
The answer to both questions is yes.
Our government is committed to protecting retirement income for today’s seniors and for future generations of retirees. Canadians receive retirement income from a variety of sources, including the Canada Pension Plan and Old Age Security. The Canada Pension Plan is funded by premiums from each of our paycheques and it is on a safe, secure, and sustainable path. Old Age Security, on the other hand, is funded from general government revenue and is not sustainable in its current form.
In 1975 there were seven working taxpayers for every senior. Because our population is getting older, today there are only four working-age Canadians for each senior. By 2030, the total number of seniors will nearly double, leaving only two working-age Canadians for each senior. Amidst these changing demographics, the annual cost of the Old Age Security program is projected to increase from $36 billion in 2010 to $108 billion in 2030.
If changes are not made to the Old Age Security program, it will become unsustainable in the long-term. Failure to make important decisions now will put the program in jeopardy for future generations.
I can guarantee you that any changes to Old Age Security will never affect anyone currently receiving benefits, nor will they ever affect any individual now nearing retirement. Other Canadians, who are not near retirement, will receive substantial notice of changes to Old Age Security, to ensure they have ample time to plan for their future.
Our government will take responsible action to ensure financial stability for future generations of seniors and give them confidence that Old Age Security will be sustainable and available to them in their retirement.
Greg Rickford MP
Kenora Riding