The Canadian Association of Retired Persons (CARP) is warning about the recent increase in old age security (OAS) being made eligible only for people 75 years of age and older, which the organization says causes Many young retirees are at potential risk.
The government of Canada increased the OAS by 10% in July, a move the federally said was the first permanent pension increase in nearly 50 years.
However, this leaves behind “what may be the most needed part of the entire group of older Canadians,” says Bill VanGoarder, CEO of the Canadian Association of Retired People (CARP), referring to the Canadian Association of Retired Persons (CARP). seniors aged 65 to 75 years. .
The OAS pension is paid monthly to seniors aged 65 and over in Canada. When the 10% increase began rolling out in the last week of July, recipients between the ages of 65 and 75 were not eligible for an additional $800 per month.
VanGoarder told CTV’s Your Morning on Friday: “Some of our statistics show that kids 65 and older are in need of money these days.”
CARP, along with the National Association for Federal Retirees and Réseau FADOQ, has called on the federal government to increase OAS benefits by 10% for all eligible seniors, not just those 75 and older. up.
“This measure discriminates on the basis of age and risks setting a dangerous precedent by creating two classes of elderly people,” according to a 2021 statement released by the three organizations.
While inflation is affecting all age groups in the country, VanGoarder said seniors recently retiring could face a tougher time than most.
“People who started planning for retirement 20 or 30 years ago didn’t expect inflation like it is now and didn’t expect to fear running out of money before it passed,” he said.
“One of the biggest fears older Canadians have now is that they will outlive their money.”
OAS is evaluated every three months and is based on the consumer price index. However, VanGoarder said the costs of food, healthcare and accommodation for the elderly have increased – not just during periods of inflation – and these changes are not reflected in the OAS index.
For those living on a fixed income, a 10 percent increase after 50 years “doesn’t help much,” says VanGoarder.
CTVNews.ca has reached out to the federal government for comment, but did not receive a response regarding the publication date.
With files from CTVNews.ca’s Michael Lee