February 09, 2012
Current OAS recipients’ payment plan will continue unchanged
Van Kesteren said that as for future retirees, the question is not about cutting, but rather how can we make it sustainable. “People need facts - not fear. The reality is that we as a society must begin to plan for our retirement future and not wait for a crisis.” said Van Kesteren. “In 1975 there were seven working taxpayers for every one senior; in 2030 it’s projected to only be two workers for every senior. Failure to make important decisions now could put the program in jeopardy for future generations.”
With the changing demographics, the annual cost of the OAS program is projected to increase from this year’s $36 billion and escalate to over $108 billion in 2030. Unlike the Canadian Pension Plan, which is funded by premiums from paycheques, OAS is funded through the general government revenue and many have questioned its sustainability.
Other G7 countries have taken steps to ensure the sustainability of their public pensions including: Australia, France, Germany and the United Kingdom.
Van Kesteren said there were three important points for the people of Chatham-Kent-Essex to keep in mind. “First, it is important for people to know that current recipients will not see any changes. Secondly, we must take responsible action now to ensure that OAS will continue to do what we need it to do. And thirdly, if there are any changes, there will be years of advance time for everyone to prepare for it.”
“But first, let’s have a responsible understanding and dialogue about how we as Canadians believe we can best ensure a sustainable OAS plan into the future as we drop from seven workers to two for every OAS recipient.”