Local seniors' advocates are raising concerns about the federal government's change to eligibility requirements for old age security payments.
The Conservative government released its budget last Thursday, revealing plans to change the eligibility age for seniors' benefits - old age security and guaranteed income supplement - from 65 to 67.
"It's going to affect low-income people right now," said Elsie Dean, a Burnaby seniors' advocate. "Women in particular lose their jobs as they get older. They have low incomes very often, - and don't have pensions. I meet many women in their late 50s and late 60s that can't wait till they get their pension because they are living on welfare."
The OAS changes, however, are gradual and won't start until 2013 and will be fully implemented by January 2029. Anyone who is 54 or older as of March 31, 2012 will not be affected.
"It's really a long way down the road before we see these changes affecting seniors or people who want to retire," Dean added. "But if it was implemented now, it would greatly affect women on low incomes, because to work another two years is not desirable."
According to Service Canada, average Canadian Pension Plan payments are $528 per month, and OAS payments are $540 maximum. Guaranteed income supplements, which are used to top up benefits for low-income seniors, are about $492 to $732 per month, leaving a typical senior with roughly $1,800 per month to live on, not including any RSPs, company pension plans or personal investments one may have.
"But the vast majority don't have company pension, so you depend on your CPP and your old age security, and whatever you have saved," Dean added. "You can see, if people have to work till they are 67, it's OK if they are healthy and if they have a job. - To me, it's most ridiculous. We have such high unemployment among young people, it doesn't make sense to have people stay on the job longer."
Richmond MP Alice Wong, the minister of state for seniors, said the ratio of working people to those collecting OAS will increase in the future as the population ages, and the government wants to make benefits more sustainable. If the government does not make changes, 21 per cent of the total federal budget will go to OAS by 2030, Wong said.
"We want to make the changes now so the system can go on," she said.
Wong pointed out that OAS is not the same as the Canadian Pension Plan.
"People should know the difference between pension plan and OAS," she said, adding that the pension plan is stable and won't change. "OAS is a social program. It's not for retirement. Of course, people collect at a later age," she said.
Wong pointed out another change the Tories brought in: Effective July 1, 2013, people can voluntarily defer their OAS benefits for up to five years, allowing Canadians to collect later and receive a higher annual pension.
Local gerontologist Mariam Larson had concerns about the budget's impact on seniors.
"If they qualify for OAS, they are already vulnerable in the first place, so they are not in a position to work for another five years," she said.
Larson works with seniors' planning tables in New Westminster and Burnaby.
"There doesn't appear to be anything in the budget that addressed the needs of the current seniors - recognition of health challenges, recognition of those who have lost what they have in their retirement accounts - recognition of costs of housing, transportation and the already dramatic reduction of social services and support for social services," Larson said.
Wong also said the government is phasing in "proactive enrolment" next year, so eligible seniors will automatically receive OAS and GIS without having to apply.
"This is a result of my visits across the nation," she said. "I've listened to different seniors. There are seniors who have not applied and are not received the benefits. By doing this, more seniors will receive benefits."
www.twitter.com/ JenniferMoreau
