Internal government memos warn that raising the eligibility age for Old Age Security (OAS) would plunge many 65- and 66-year-olds into poverty, even as program costs are projected to skyrocket.
Reliance on OAS and GIS
According to briefing notes published by the Department of Employment, about 20% of those aged 65 and 66 rely on OAS and the Guaranteed Income Supplement (GIS) for most of their income. “The number of seniors living in low income in this age group would have risen significantly with the increase in the age of eligibility,” read an excerpt from the memo, published Wednesday by Blacklock’s Reporter. “Vulnerable 65- and 66-year-old seniors depend on this support and without it, would have faced a much higher risk of living in poverty, which is not acceptable.”
Historical context
In 2012, the Stephen Harper government passed legislation to delay OAS eligibility until 67, a move projected to save nearly $11 billion. That change was reversed four years later by the Justin Trudeau Liberals, restoring the age to 65.
Rising program costs
Driven by an aging population and longer life expectancy, OAS program expenditures are projected to climb to $136.6 billion by 2035 and reach $276.5 billion by 2060. Canada currently has 8.4 million seniors, nearly one-fifth of the population, and that number is expected to exceed 12 million by 2060. “The ratio of program expenditures to GDP is projected to increase from 2.8 per cent in 2025 to a high of 3 per cent in 2033,” the briefing note stated.
