Maclean’s: Seniors and the generation spending gap

I’m really tired of every government program and non-profit social support program being defined by an age. What about supporting an individual, or a family based on a need. Let’s stop the age discriminatory policies and programs and base them on income. Granted the numbers have thankfully changed under the Federal Liberals but it is far from making up for the funding gap defined and supported by Harper’s Federal Conservatives while they were in power. Click here to read the full article or an excerpt below. 

 

 

But for there to be any meaningful change, governments will likely need to rethink the perks they give to their elderly voters and instead tailor their programs to those who really need the help, regardless of age. Gibbins thinks wealthy seniors may need to start covering more of the cost of their own health care to free up government resources for struggling younger workers. Despite the inevitable political blowback, governments may also need to start subjecting sacred seniors’ benefits like pension income-splitting or CPP and OAS to a “means test”—a sliding scale based on income. Today, a couple can earn a combined retirement income of $140,000 and still qualify for full Old Age Security. They can earn as much $230,000 before those benefits are clawed back entirely. In a study last year, the Fraser Institute proposed that lowering the clawback threshold for OAS benefits to $102,000 for a couple (or $51,000 per person) would free up $730 million in federal cash every year.

 

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