Internal government memos have revealed that increasing the eligibility age for Canada's old age security (OAS) program would plunge many 65- and 66-year-olds into poverty.
About 20% of those aged 65 and 66 rely on OAS and the Guaranteed Income Supplement (GIS) for most of their income, making them vulnerable to financial hardship.
According to the memo, "The number of seniors living in low income in this age group would have risen significantly with the increase in the age of eligibility." Vulnerable 65- and 66-year-old seniors depend on this support and without it, would have faced a much higher risk of living in poverty, which is not acceptable.
The OAS program costs are set to skyrocket due to an aging population and Canadians living longer than ever. Expenditures incurred by the OAS program are projected to climb to $136.6 billion by 2035, and reach a staggering $276.5 billion by the year 2060.
Canada is home to 8.4 million seniors, representing nearly one-fifth of Canada's population. By 2060, that number is expected to exceed 12 million, pushing costs even higher.
The ratio of program expenditures to GDP is projected to increase from 2.8 per cent in 2025 to a high of 3 per cent in 2033, further exacerbating the financial burden on the government.
