The maximum CPP [$10,609.44] plus OAS [$6,028] and GIS [$2,309.48] bring the total income of a single low income senior to $18,946.92, which is $989.52 above the LICO. However the LICO is not set at a level to meet the real cost of living. In fact, it barely covers the basic essentials of daily living and would not accommodate costs such as medications not covered by or delisted from provincial drug plans or health care services not covered by provincial health plans.

This is compounded by financial challenges to family caregivers and the shortage of affordable housing. Many low income seniors are forced to choose between paying the rent and buying needed medicines or as is more often the case, between buying basic foods and needed pharmaceuticals. Their reduced resiliency means that the impact of poverty on their health and well being is greater – and this increases the costs to the health care system and affects the financial, emotional and physical well-being of the Sandwich Generation as they care for their elders as well as their children. Governments recognize the need but fall short on solutions:

All levels of government have recognized the need to address the specific challenges faced by seniors and provide varying amounts of support but with no comprehensive national anti-poverty strategy, inadequate levels of support, claw backs (2), insufficient awareness that support is available (3), lack of affordable housing, and persistent barriers to meaningful employment. The problem of seniors living in poverty will continue to increase as Canada’s population ages.

What CARP recommends:

First, define poverty to include both sides of the income/expenditure equation and create a pan- Canadian Anti-Poverty Strategy for all ages.

Secondly, establish a National Pharmacare Program to lower costs of medication and to equalize the availability of prescription drugs across the country for seniors and continue contributions to benefits for older workers by employers.

Thirdly, in order for the income of seniors to meet the real cost of living, we recommend that:

(i) the low income cut off (LICO) be raised to more accurately reflect the real cost of living;

(ii) the base amount of GIS payments be increased to meet the readjusted LICO and therefore the real cost of living;

(iii) all pensioners be reimbursed the full amount of the shortfall caused by the admitted underestimation of the CPI between 2001 and 2006 by Statistics Canada;

(iv) fluctuating volatile items (e.g., food, fuel, etc.) be included in the calculations of the CPI to ensure realistic increases to pensions and supplements;

(v) the 50% claw back rate of GIS payments be reformed to include a band of allowable income above the LICO without initiating a claw back of GIS;

(vi) the base level of taxable income be changed from $15,000 to $25,000;

(vii) the CPP drop out provision be extended to include family caregivers who leave work or reduce their hours of work to provide elder care;

(viii) workers over the age of 65 be given the option to continue contributing to CPP, adjusting current CPP income accordingly;