The Canadian Association of Retired Persons (CARP) is disappointed by Prime Minister Justin Trudeau’s decision to exclude seniors from the newly announced $250 cash payment, while at the same time refusing to take action on Old Age Security structural increases.
Seniors are struggling with rising costs, and this decision comes while the government continues to resist implementing the will of the House of Commons and the passing of Bill-319 to increase Old Age Security (OAS) by 10% for all seniors 65 and older. “By excluding seniors from targeted affordability measures and splitting seniors into two categories for OAS eligibility, the government perpetuates financial insecurity for Canada’s aging population,” said Rudy Buttignol, C.M., President of CARP.
In 2022 the government increased OAS by 10 percent for seniors aged 75 and up, but did not include seniors aged 65-74.
“It’s unfair for Canadians aged 65 through 74, which excludes millions of seniors from the 10% increase. If the government truly wants to help hard working Canadians — those who have built up this country – increasing the OAS for seniors is the way to go,” adds Buttignol.
The $250 “Working Canadians Rebate” rebate, announced as a measure to address affordability challenges, leaves out retirees, people with disabilities, and those on social assistance—groups that are among the most vulnerable to inflation.
The federal government’s plan provides a one-time $250 payment to Canadians who worked in 2023, earning $150,000 or less. The payments are expected in early spring 2025 and will cost approximately $4.7 billion. Those who did not work in 2023 – including retirees – are entirely excluded.
Seniors Left Behind
CARP members are particularly frustrated by the exclusion of retirees, especially those living on fixed incomes like CPP and OAS. Many seniors face mounting financial challenges as their pensions fail to keep pace with inflation.
Prime Minister Justin Trudeau justified the policy by stating it recognizes “hard working Canadians,” a comment that many seniors found dismissive and stigmatizing.
One CARP member expressed dismay, saying the policy seems to suggest that seniors are no longer considered “hard working” Canadians, despite decades of contributions to the economy.
At a press conference, Trudeau cited his government’s previous support for vulnerable populations, such as the OAS increase and the Canada Child Benefit. However, CARP notes these measures are insufficient, particularly for seniors who are younger than 75 or those who were unable to save adequately due to rising costs in recent years.
The government’s reference to the 10% OAS increase as alternative support is inadequate, as this only applies to seniors over 75, leaving those aged 65-74 without additional assistance during this period of high inflation.
“To suggest this rebate is about recognizing ‘hard working Canadians’ implies that retirees’ contributions to building this country are somehow less valuable,” adds Bill VanGorder, CARP’s Education and Advocacy Officer. “Our seniors deserve better than to be excluded from vital financial support.”
CARP calls on the federal government to allow the approved Bill-319 to advance for royal recommendation immediately; to ensure fair and equitable support for all vulnerable seniors is the only equitable way to make up for their exclusion of retirees from the ill-advised rebate.
