The Canadian Association of Retired Persons (CARP) is sounding the alarm over the recent increase in Old Age Security (OAS) which is only made eligible for those 75 and older, which the organization says , exposes many young retirees to potential risk.
The Canadian government increased OAS by 10% in July, a move the federal government says is the first permanent pension increase in nearly 50 years.
However, it leaves behind “what may be the most needed part of the whole Canadian seniors group,” says Bill VanGoarder, chief operating officer of the Canadian Association of Retired Persons (CARP), referring to people aged 65 to 75. .
The OAS pension is paid monthly to people aged 65 and over in Canada. When the 10% increase began to be applied in the last week of July, beneficiaries between the ages of 65 and 75 were not eligible.
“Some of our stats show that it’s the younger cohort of 65-plus who need money the most these days,” VanGoarder told CTV’s Your Morning on Friday.
CARP, along with the National Association of Federal Retirees and Réseau FADOQ, have called on the federal government to increase OAS benefits by 10% for all eligible seniors, not just those age 75 and over.
“This measure is discriminatory on the basis of age and risks setting a dangerous precedent by creating two categories of seniors,” according to a 2021 statement issued by the three organizations.
As inflation affects all age groups in the country, VanGoarder says newly retired seniors could face a tougher time than most.
“People who started planning for retirement 20 or 30 years ago didn’t expect inflation to be what it is today and didn’t expect to be afraid of running out of money. before they died,” he said.
“One of the biggest fears of older Canadians is outliving their money.”
The OAS is assessed every three months and is based on the consumer price index. However, VanGoarder claims that the costs of food, health care and housing for the elderly have increased – not just during the period of inflation – and that these changes are not reflected in the indexation of the S.V.
For people living on a fixed income, a 10% raise after age 50 “doesn’t help that much,” VanGoarder said.
CTVNews.ca has reached out to the federal government for comment, but had no word as of press time.
With files from Michael Lee of CTVNews.ca