The Canadian Association of Retired Persons (CARP) is calling on Ottawa to increase the Old Age Security (OAS) benefit by 10% for seniors aged 65 to 74. It’s one of seven recommendations the group submitted ahead of the federal government’s fall budget.
“OAS is not a luxury; it is a promise and the backbone of retirement income for millions of Canadians,” wrote Anthony Quinn, CARP president, in the organization’s submission to the Department of Finance. “For many seniors, particularly those without private pensions or substantial savings, OAS makes up nearly half or more of their annual income. Undermining it in any form would be a direct assault on retirement security in this country.”
The 2021 federal budget included a one-time $500 payment for seniors 75 and older, along with a permanent 10% increase beginning in July 2022. That commitment had been promised during the 2019 election.
“By withholding this increase [from seniors under 75], the government has effectively penalized an entire decade of older Canadians, many of whom are struggling on fixed incomes in an era of high inflation,” said Quinn. “This arbitrary age cutoff is unjust and ageist.”
In addition to boosting OAS, CARP made six other recommendations:
- Eliminate mandatory RRIF withdrawals. “Let seniors and their trusted financial advisors decide when and how much to withdraw, based on their needs rather than an outdated formula.”
- Hold banks and regulators more accountable for protecting investors. “Canada’s banks are failing retail investors, especially seniors. … [Their] advisors are motivated by sales quotas and incentives that put the interest of the banks ahead of their clients. Regulators are aware but have taken no action to end this exploitation.”
- Get tougher on fraudsters and scam artists targeting seniors. “Classify senior-targeted fraud as a serious offence under the Criminal Code. … Mandate accountability from banks and financial institutions that fail to flag or prevent suspicious transactions.”
- Reject home equity tax proposals. “Such a tax would harm the retirement security of millions of older Canadians who have relied on the long-standing exemption as a pillar of financial planning. For Canada’s seniors, home equity is not speculative wealth; it is their last line of defence against poverty, rising health care costs and income erosion in later life.”
- Fund vaccine development for seniors. “Seniors deserve barrier-free access to life-saving vaccines — in fact, older adults face the highest risk of severe complications and death from infectious diseases. Yet, inconsistent funding and fragmented provincial policies create unequal access across Canada.”
- Invest more in home and community care services. “Make significant investments in home and community care to allow seniors to age where they choose.”
Prime Minister Mark Carney has not announced a date for the fall budget, but it is expected in October. Submissions were accepted until Aug. 28.