By Rudy Buttignol, C.M.
CARP President

Generations should not be pitted against each other in a zero-sum game

The Bloc Québécois’s proposal to increase Old Age Security and Guaranteed Income Supplement payments to seniors aged 65 to 74 has generated an avalanched of news stories. While this would help financially precarious seniors, the proposal is being attacked as an unfair burden on younger Canadians. According to some critics, government resources should be directed to the young instead for the sake of “generational fairness”. Are there really no other options available for a notoriously spendthrift government? How about cutting back on the $20 billion spent annually on consultants?

Since 2022, together with other seniors organizations, CARP has advocated to end the discriminatory practice of restricting OAS increases to those aged 75 and over. Seniors between 65 and 74 face the same inflationary pressures, rising healthcare costs, and housing challenges. The current legislation is arbitrary and unfair, creating two classes of seniors. Bill C-319 aims to correct this. OAS and GIS are not handouts for the “privileged boomer” generation. The notion that expanding benefits for seniors in need threatens the financial future of younger generations is flawed and divisive. These social programs are meant to help ensure that seniors can age with dignity in an era of rising costs and growing financial insecurity.

A recent Globe and Mail editorial argued that Canadian retirees enjoy the “lowest poverty and highest wealth” of any demographic. That may be true for some but not all. Many seniors rely solely on OAS and GIS to meet their basic needs, from housing to groceries. It is their lifeline. Even seniors with moderate incomes face significant costs related to healthcare, home adaptations, and caregiving; which has been put under greater financial stress because of inflation.

We should resist framing the BQ’s proposed legislation as a zero-sum game, where supporting seniors means depriving younger generations. The claim that OAS expansion represents an “intergenerational injustice” misses the mark entirely. Younger Canadians will eventually benefit from their support of these same programs, just as today’s seniors contributed to them through their income taxes over the course of several decades.

One of the more troubling proposals attempting to gain traction is taxing the equity from the sale of a primary residence. Globe and Mail contributor Dr. Paul Kershaw regularly raises the prospect in his Generation Squeeze columns. Dr. Kershaw’s recent meeting with Prime Minister Trudeau elevated the notion that the burden of providing “generational fairness” should be foisted onto the shoulders of the boomer generation. On CBC Radio One’s The Current panel, Dr. Kershaw and I recently debated the merits of Bill C-319 and generational fairness. My over-arching point was that helping one need not be at the expense of the other.

I agreed that the eligibility thresholds for receiving seniors’ benefits was worth considering. However, the next day, he misleadingly posted on his website that I proposed lowering the thresholds. No such thing was proposed. Indeed, an in-depth review of the thresholds might reveal the opposite; that they should be raised. In a new CARP survey of its members, 43% said the thresholds should remain the same; 30% wanted it raised; and only 13% wanted it lowered.

Intergenerational solidarity is the cornerstone of a strong society. Programs like OAS and GIS were established to ensure that all Canadians have access to basic financial security in retirement. Rather than diminishing these systems, they should be strengthened. We need to advocate for policies that address the challenges facing younger Canadians such affordable housing, accessible childcare, or tackling climate change, but not at the expense of seniors.

The Canadian Association of Retired Persons represents over 230,000 members from coast to coast who believe that increasing OAS for all eligible seniors is not just fair, it’s essential. Financial insecurity among seniors is on the rise. With ever-increasing cost of living, the need to keep pace with inflation has never been greater. Let’s reject generational antagonism, let’s end the ageism and, instead, work together to build a future where every generation can thrive.

Headline Photo by Andrea Piacquadio