Replay: How does the budget affect you? (Live Chat on CTV)

  • The main downloading will occur when low-income seniors go to the provinces for financial supportThe government appears to have heard the concerns voiced by many that those with low wage jobs or who cannot wait the extra two years for their OAS, and in many cases, also GIS. But instead of specifically doing something about it, except in limited circumstances, they fully anticipate that such people will have to apply for welfare from the provinces.

    Specifically, the proposals state that people on federal government assistance, like veterans or First nations, will have their benefits extended to age 67. they will ask the provinces to agree to change the CPP so that people who gets CPP disability pension will not be cut off at age 65. Finally, they offer to compensate the provinces for any increased costs – presumably for added welfare costs.

    While this sounds like the low income are looked after, in fact, provincial welfare benefits vary across the country and none come up to the levels of OAS and GIS combined. So unless the provinces are willing to create a new “OAS/GIS Replacement Program” and get the federal government to fund it, these people will be caught short.

    And of course, there is the stigma of having to apply for welfare.

    If this is the net result the government was seeking, they could have just as easily have lowered the claw-back thresholds.

    by Susan Eng – CARP3/30/2012 10:12:05 PM March 30 at 6:12 PM
  • Thanks Leigh, interesting insight. Definitely seems that those who have taken a hands-off approach to their savings and retirement funds need to start being more proactive about it!
    by andy.johnson3/30/2012 10:13:19 PM March 30 at 6:13 PM
  • Thanks Andy
    by Ken Lawson3/30/2012 10:13:29 PM March 30 at 6:13 PM
  • Why is the government not focused on the youth of today? As a university student invested in
    by mjonah3/30/2012 10:13:31 PM March 30 at 6:13 PM
  • I agree Andy. It sounds like some of that financial education will creep into the schools, but certainly its never too late to start teaching it at home!
    by Leigh Vyn3/30/2012 10:14:09 PM March 30 at 6:14 PM
  • Hi MJonah, I think your comment may have gotten cut off. Still, maybe Leigh could address the issue. I was wondering the same thing. Leigh, did you see anything in the budget that is of particular interest to Canada’s youth? I spotted a couple of references to a hiring credit for small businesses to cap their EI premiums if they hire new staff, but not much else?
    by andy.johnson3/30/2012 10:15:31 PM March 30 at 6:15 PM
  • Hey I have a comment as a younger person. I think it’s pretty rich that many are decrying the raising of OAS from 65-67, when people live way longer than they used to. Plus, there’s a consensus among younger people that the baby boomers had a feast, and now we’re snacking on the crumbs under the table.
    by Jex Opolis3/30/2012 10:15:56 PM March 30 at 6:15 PM
  • Thanks for the response, Susan.
    by Drake3/30/2012 10:15:58 PM March 30 at 6:15 PM
  • And while Leigh answers that, I also have another question for Susan: Do you think more low-income seniors will be working until the age of 67?
    by michael.stittle3/30/2012 10:16:01 PM March 30 at 6:16 PM
  • Low income seniors are likely to need to keep working if they can. Unfortunately there is a correlation between low wage earners and poorer health, combined with the likelihood that the job itself is not very fulfilling, and you can see the added pressure on low income seniors that could be brought on by the increase to OAS eligibility age.
    by Susan Eng – CARP3/30/2012 10:16:28 PM March 30 at 6:16 PM
  • The budget affects me in the sense that it makes me ashamed of my neighbours for voting in this government. The one thing I agree with is the end of the penny, even though I will be sad to see it go. Everything else, the retirement age, and cuts to the CBC, it’s all offensive.
    by Shams3/30/2012 10:17:17 PM March 30 at 6:17 PM
  • You’re right — there wasn’t a lot there for youth, besides what you mentioned. There was a reference there to providing an additional $50 million over two years to assist more young people in gaining tangible skills and experience. This funding will focus on connecting young
    Canadians with jobs in fields that are in high demand.
    by Leigh Vyn3/30/2012 10:17:53 PM March 30 at 6:17 PM
  • Again, short on details, but there was some discussion there with more details to follow I’m sure.
    by Leigh Vyn3/30/2012 10:18:36 PM March 30 at 6:18 PM
  • Jex, some would suggest Canada’s youth want to have those cake crumbs and eat them too. That they want everything our parents had and more, but that it’s simply not sustainable.
    by andy.johnson3/30/2012 10:18:37 PM March 30 at 6:18 PM
  • I’m not seeing anything in this budget that gives any hope that Canada is looking to innovate when it comes to green technology. Looks to me like we’re staying firmly on the path to simply providing the world with natural resources (that are finite). Or am I being cynical?
    by Bella3/30/2012 10:19:15 PM March 30 at 6:19 PM
  • Yes Susan I could work if I want and also pay into Canada Pension if I select to
    by Ken Lawson3/30/2012 10:19:20 PM March 30 at 6:19 P
  • Here’s a question for both Susan and Leigh: How can baby boomers better prepare for their financial future? by michael.stittle3/30/2012 10:19:31 PM March 30 at 6:19 PM
      • We all need to save better for our retirement starting with our first pay cheque. That’s the importance of the CPP and workplace pensions – money is set aside for the whole of our working career – which makes it easier and more cost effective to accumulate the savings that we’ll need as we enjoy a good long life in retirement.However, fewer and fewer employers offer decent pension plans and the CPP only provides a basic pension – certainly not enough to live on.

        That’s why CARP calls for an enhancement to the CPP and a supplementary pension savings vehicle to help people better save for their own retirement rather than depending on the public purse when they retire. If we reform the pension system properly, there will little need or concern about he OAS.