At the end of April, Canadians under age 54 who wanted to start collecting old age security benefits at age 65 will now have to wait two more years thanks to the Tory federal budget announcement.
The feds are increasing the eligibility for Old Age Security and Guaranteed Income Supplement benefits from 65 to 67, but that won't apply to anyone 54 years or older as of March 31.
Federal Finance Minister Jim Flaherty made the announcement saying it will phase in the changes over six years starting in April 2023 and won't apply the new rules to anyone born before April 1, 1958.
The B.C. Council of Senior Citizens' Organization has been very vocal about their objections to the new budget changes, claiming Canadian pensions are too small to begin with.
"Canada's public pension system is already among the stingiest in the developed nations of the world," said Gudrun Langolf, first vice-president of the Council of Senior Citizens Organizations (COSCO).
"Thousands of retired Canadians face living in poverty," she added. "I fear, if they are raising the age, that it won't be long before we see further cuts in these inadequate pensions."
Langolf pointed out that Canada spends far less than the Organization for Economic Co-operation and Development average on pensions. She noted a study by Canada's parliamentary budget officer found old age security is sustainable with a retirement age of 65 - indeed, he found there was room to improve the program by 0.4 per cent of the GDP each year.
She went on to point out a report by Edward Whitehouse, a pension policy expert with the World Bank commissioned by the Harper government was quoted as saying, "There is no pressing financial or fiscal need to increase pension ages in the forseeable future."
COSCO says that in light of the Ombudsperson's recent recommendations the budget announcement, "represents a major disappointment for B.C. seniors - especially in light of the Ombudsperson's recommendations to strengthen home support, and increase care hours in long-term care facilities," said Art Kube, president of the 80,000 member COSCO.
"The $15 million for non-medical home support is an insult to seniors. Not only is it insufficient in scope, but the program completely ignores the criteria laid down by the Ombudsperson, [whose] report calls for standards, guidelines or directives, none of which are present in this program," he said.
1959 was the height of the baby boom in Canada, it was the year when the most people were born of any year in Canada, therefore by implementing the change is 2023 that coincides with the year that many baby boomers would have been retiring.
