(Ottawa) A group defending intergenerational equity expressed Friday its strong opposition to the Bloc Québécois’ request for the old age security pension of seniors aged 64 to 74 to be increased by 10% as was the case for those aged 75 and over.
“Now is the time to recognize that a retiree household with an income of $180,000 is not really the best recipient of scarce tax dollars,” said the founder of the advocacy group Generation Squeeze, Paul Kershaw, during a virtual press briefing.
He also deplores the support of the other opposition parties – the New Democratic Party (NDP) and the Conservatives – for the Bloc initiative. The two political parties supported a Bloc motion this week demanding that the government give the royal recommendation to its Bill C-319 on the increase in the old age security (OAS) pension so that the initiative can go from the front.
Mr. Kershaw pleads for a more targeted assistance measure for seniors rather than an increase going to all people aged 65 to 74. “There are retirees who are in poverty and let’s support them,” he added.
The associate professor at the University of British Columbia believes that it would be better to lower the income threshold above which the old age security benefit must be partially or entirely reimbursed. According to him, this would ensure that wealthier seniors would give money back to the State which could be redirected to seniors aged 65 to 74 with lower incomes.
Currently, the threshold at which a refund can be requested is $90,997.
The Bloc is making the adoption of its Bill C-319 one of its conditions so that it avoids bringing down Justin Trudeau’s minority government between now and Christmas. He gave the Liberals until October 29 to grant his wishes, otherwise he threatened to begin discussions with the other opposition parties to overthrow the government.
Seniors defense groups showed their support for Bill C-319, with representatives of the FADOQ network and the Quebec Association of Retirees from the Public and Parapublic Sectors notably attending. A gathering of seniors outside the Parliament building also took place on Tuesday.
Until now, the Liberals have not closed the door, but have largely defended their choice to limit themselves to an increase in old age security for seniors aged 75 and over. Several of them have argued in recent days that 65- to 74-year-olds tend to be less vulnerable.
According to data published in 2022 by Statistics Canada, the median income of those aged 75 and over is $29,200, compared to $36,400 for those aged 65 to 74.
When carrying out its 10% increase in the old age security pension for the oldest people, Ottawa reported that “in 2018, 59% of OAS pensioners aged 75 or over had an income less than $30,000, compared to 52% of pensioners aged 65 to 74.”
Furthermore, it was indicated that in 2017, the average health spending per year for seniors aged 75 to 79 living alone exceeded those of 65 to 74 year olds by almost $300. The difference was $700 among seniors aged 80 and over. Still according to Ottawa, 39% of seniors aged 75 and over are widowed without having remarried, compared to 11% for those aged 65 to 74.
According to the Parliamentary Budget Officer, increasing the amount of pensions for seniors under the age of 75 would cost $16 billion over the next five years.
The Bloc leader, Yves-François Blanchet, refutes any idea that C-319 is too costly a measure. He believes that Ottawa could stop paying subsidies to fossil fuels and redirect these sums into measures such as increasing the old age security pension. Questioned on this point, Mr. Kershaw said he agreed with the proposal to use the money from subsidies to the oil and gas industry for other purposes.