Advocacy Group Urges Action on Old Age Security Reform

An advocacy group, Generation Squeeze, is calling for significant reforms to the Old Age Security (OAS) program in Canada. Founder Paul Kershaw recently emphasized the importance of modernizing the OAS benefit to better support both older and younger Canadians in need.

Understanding Old Age Security in Canada

Old Age Security is a federal program available to Canadians aged 65 and older. The benefit amount varies based on income and residency, with higher income retirees receiving significant monthly payments. For example, seniors earning over $100,000 annually can still receive hundreds of dollars each month.

Call for Changes to Financial Disbursement

Kershaw pointed out that many financially secure retirees are open to reducing their OAS benefits. “Our proposal would ask financially secure retirees to take less,” he stated, highlighting a willingness among seniors to help improve Canada’s fiscal situation.

Federal Budget Implications for Elderly Benefits

The financial landscape for Elderly Benefits is changing. Prime Minister Mark Carney’s budget estimates indicate that spending on these benefits will rise from $83.1 billion in 2025/26 to $88.8 billion in 2026/27. This expenditure represents the largest spending program at the federal level.

Concerns About Retirement Savings

A February 2025 BMO Retirement Survey revealed urgent concerns among Canadians regarding retirement savings. Key findings include:

• 76% of respondents worry they will not have sufficient funds for retirement due to rising living costs.
• 63% believe inflation over the past year has impeded their ability to save for retirement.

Current Payment Structure of Old Age Security

As it stands, seniors between the ages of 65 and 74 can receive a maximum of $742.31 monthly, provided their net income is under $148,451. For seniors aged 75 and older, the maximum increases to $816.54 with an income limit of $154,196. Moreover, seniors receive a 10% increase in OAS benefits once they reach 75.

Inclusivity and Generational Solidarity

Kershaw underlined the need for unity between older and younger generations. “What we need right now is solidarity,” he said, advocating for mutual support to alleviate senior poverty while investing in the future of younger generations. Generation Squeeze continues to push for policies that promote this “generational fairness” across Canadian society.

By rethinking the Old Age Security program, Generation Squeeze aims to secure a more equitable financial future for all Canadians.