Seniors - the Rodney Dangerfields of Canada

Seniors get no respect

 

We are constantly being told by our government that because we live longer that we are a burden to the "system". We are blamed for everything from Medicare to Employment Insurance and now the pension shortfall.

It seems that every other term in office someone decides to revise the pension system, as did this Conservative government, however this time around it was not of benefit to the present group of seniors and penalized the next phase....

 

As a result of these reforms, the CPP moved away from a “pay-as-you-go” basis, where contributions were set at a level that would accommodate pension payouts and provide a contingency fund of two years’ worth of benefits for all eligible Canadians. (Under the previous system, any surplus was automatically loaned to the provinces.) Under the new reforms, the CPP moved to a “partially funded” model, accumulating a larger fund of approximately five years’ worth of benefits. In turn, these monies are subsequently invested more broadly by the Canada Pension Plan Board to achieve a better rate of return ― meaning that the funds are not simply sitting “parked” somewhere, but are accruing value.

These reforms significantly improved the financial sustainability of the CPP, such that in 2007, the federal Office of the Chief Actuary released a report on the CPP, which concluded the CPP will be financially sound over a 75-year period. It also found that between 2007 and 2019, CPP contributions will be more than sufficient to cover benefits. After 2019, a portion of the CPP’s investment income will be needed to make up the difference between contributions and expenditures. That said, the economic recession of 2008-09 did impact the CPP. In February 2009, the CPP Investment Board reported a decline in the fund, of $13.8 billion for the nine-month period ending December 31, 2008 (CPPIB, February 2009). By September 2009, however, the board had reported a sharp increase in the fund’s value, which regained the value it lost during the recession (CPPIB, November 2009).

http://www.mapleleafweb.com/features/canada-pension-plan-overview-history-and-debates#history


Seniors are working later in life to supplement their pensions due to the escalating cost of living. Where fuel cost 17 cents per gallon it now costs 1.28 per litre. Where a mortgage payment was approximately 100 dollars per month PIT (principal, interest and taxes) it now ranges between 1500 to 3500 dollars per month. Rent, unless one moves into subsidized housing, is 1100 to 1500 dollars per month.


Many seniors are running up their credit cards and falling behind in payments, bankruptcies are on the rise amongst seniors.

We hear complaints about our social programs however it was much worse in the 40's and 50's when there were no social assistance programs to help sustain the elderly or lower income earners.


Accordingly, in 1951, the federal government introduced the Old Age Security Act, which provided a universal pension plan to Canadians, referred to as Old Age Security (OAS). Under the new scheme, all Canadians aged 70 or older (and with more liberal residency requirements) were eligible for a taxable benefit of $40 per month. With this new scheme, the means test was dropped, allowing seniors to collect the same benefits regardless of their other income or assets. At the same time, the federal government also introduced the Old Age Assistance Act. It provided a needs-tested (as opposed to means-tested) pension of $40 per month to retired Canadians aged 65 to 69. This program was cost-shared by the federal and provincial governments on a 50-50 basis, and administered through provincial welfare departments.



Idle No More For seniors

Thanks for the "Idle some more Seniors" above Richard