So, was it a trial balloon or should we just be waiting for the other shoe to drop? Thursday, far from home, Prime Minister Stephen Harper spoke to the World Economic Forum in Davos, Switzerland. But many of his comments were remarkably tailored for a Canadian audience rather than for the world leaders and economists gathered to talk about the woes in the international economy.
One of Harper's comments? That he's preparing to use the power of his majority government to make Canada's retirement system financially sustainable. "We have already taken steps to limit the growth of our health-care spending. ... We must do the same for our retirement income system." That sounds like an enviable goal - but it's one that should be watched with care, and with particular care in this province, where we can expect to have one of the oldest populations in the country. "For those elements of the system that are not funded, we will make the changes necessary to ensure sustainability for the next generation," Harper said. He's not talking about the Canada Pension Plan, which is fully funded, or about seniors currently receiving old age benefits. That leaves a particular area. Balancing the books, in this case in the Old Age Security system, can mean one of two things: either the government can find more money to prop up the system, or else the rules for the system can change, so that less money goes out in the mail - and seniors, or seniors-to-be, end up receiving less. Old age security is not something that generally troubles federal cabinet ministers. After six years or so in government, the ministers who will decide on old age security will each be eligible for government pensions well over the $100,000-a-year mark. Having old age security trimmed - or, as is suspected, delayed to age 67 or later - wouldn't make much of a personal dent. But for other older Canadians, Old Age Security is a crucial point. The fiscal problem, as if often the case, is the Baby Boom generation, a bulge of population that's swelling into retirement. Those boomers now finding retirement are going in with markets (and pension savings) in a large dip, and Old Age Security (OAS) payments could well be a large part of retirement planning for many. Harper may be right that the looming growth in OAS spending "poses a threat" to Canada's social programs. Problem is, cutting back on that spending could equally pose a threat to the long-term financial security of many of Canada's elderly. Years ago, when Brian Mulroney attempted to de-index Old Age Security, he discovered that seniors can be a vocal force in Canada's politics. One other thing: unlike many other groups in Canadian society, seniors have a long record of not only being interested in politics, but in bringing that interest right to the ballot box. There will certainly be many voters waiting for that other shoe - they may also be looking for something to kick with it.
Seniors, take heed
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Comments
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- Anon
- - January 30, 2012 at 15:46:10
As usual, everyone's distracted by the issue of age, security and Harper being a moron and no ones looking at THE REAL PROBLEM! - OUR MONETARY SYSTEM! We're in trouble because we pay off the debt of our money supply which gets bigger whenever we print more money, this is a consequence of FIAT currency. Fractional Reserve banking also needs to stop to help prevent inflation as does Compound Interest. End Usury and back our money with gold and we won't be having these conversations. UNTIL YOU CHANGE HOW MONEY WORKS YOU CHANGE NOTHING. Have a nice collapse, petroleum-aged manking. And the youngsters that couldn't care less about the old fellas pensions better start asking them how to grow vegetables cause they may need to know how to do that before they make it to 65 let alone 67
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- Lane
- - January 30, 2012 at 09:50:20
As people live longer and enjoy more productive years, it makes perfect sense to push the retirement age later. We can't sustain a system in which people are not working for the final third of their lives. Congratulations to the Harper government for having the courage and honesty to deal with the problem before it gets completely out of hand, instead of letting the next generation of taxpayers shoulder the unfair burden of this generation's so-called entitlements.
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- BabyBoomer
- - January 30, 2012 at 09:50:09
As a baby boomer, I am sick of paying all my life for services that won't be there. Only to have our services in every gov sector cut back. Baby boomers fight back now! Because by the time we are seniors, what we as a large cohort, paid for in mega taxes, won't be there. We have been carrying these programs for everyone. We deserve access and what we paid in (perhaps they should fund by taxes paid in). They're are less children to pay for us although we did fund- pay for ourselves. Not acceptable! We fund and pay in the most always and always get ripped off. I say no more. At least let us retire and die with a bit respect and dignity, not to mention what we paid for!! Food banks, double gas, oil and utility rates while you people enjoy gold plated pensions. I say only over our dead bodies, us baby boomers.
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- Eli
- - January 30, 2012 at 14:31:26
Stop blaming everyone. Put the blame where it belongs...cut-out the friggin' federal waste!
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- MBC
- - January 29, 2012 at 18:30:54
NLers were right in not voting for the Conservative in the last federal election. All the others provinces.....what were you thinking.? Didn't you read Harper's book on his plans for Canada? Go and get it a your local library.
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- Ian
- - January 29, 2012 at 13:21:25
Canadians are now being awoken to the true view of Harper's agenda. People who voted this Right Wing Reform Party to a majority must be wishing they could take back their vote. Four more years of Harper and we won't recognize the Canada we have come to love. No fairness, No compassion, No Health Care, No Pensions...but plenty of Gazebos, Fighter Jets and Prisons. On the bright side, Harper is driving the final nail into his coffin so we only have to wait four years and he and his band of Neocons be gone.
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- David
- - January 30, 2012 at 09:50:33
You're right Ian.....Harper is just doing this to get back at all those Liberal voters! There's plenty of money in a CPP system that was run so well under decades of Liberal governments. Everyone who ever said that it would clearly go broke for the past 20 years under the burden of Canada's looming demographic yoke was so full of it!! And Harper is NOT being a leader and takinf action that a real leader would when faced with an unpleasant and politically extremely unpopular decision...why, Canada has had so many, many strong leaders in the recent past, with such immense courage and backbone, that we'd be the very first to identify that trait. No, this Harper guy is clearly a lunatic without any morals, a petty guy with an agenda hidden so well that no one can even tell us what it consists of...other than that stuff he said during those campaigns, the same stuff that he's done or is now doing.....clever diversion, Stevo!
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- Jerome
- - January 29, 2012 at 13:20:39
Those who feared a Harper majority: your fears are now being realized. We haven't seen anything yet. With no "government in waiting", the next eight years will be very interesting - and defining for our country.
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- PETER
- - January 29, 2012 at 13:13:02
Food banks look out, client services will increase due this shocking change. Changing the OAS will not save anything in the long run or in the big picture, it will shift the imbalance elsewhere. Food banks will be hard hit, seniors who now wonder if they will heat or eat or medicate will have a much harder time making end meet, much harder time just trying to live. I have worked wioth food banks for over 20 years, everytime the governments come up with this stuff, we see more clients, how short sighted are they at all? I guess they don't have to worry about OAS, they got that one beat.
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- The Economist
- - January 28, 2012 at 14:50:12
Your premise is wrong. They would not be cutting the OAS. They would be cutting the OAS, MORE. The OAS is not indexed to inflation as it should be because of fictious inflation figures. People who need the OAS and the Supplement cannot get money from other sources, therefore they are hit by an OAS that is actually falling. For example when they say that inflation is Two per cent how can the poor senior pay for an increase in St. John's Municipal Taxes which goes up 15-20% every four years and 2 % or more each year in between. On top of this the Provincial Government wants to double the electricity rates. I'll bet that they will not be giving a Home Energy Rebate for the total of this increase. They will just have to build Seniors Homes for three quarters of the Senior population as the seniors will not be able to stay in their homes and live.
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- Tony Martinez
- - January 28, 2012 at 14:40:28
When this government seems to justify unexplained and hidden exorbitant cost for G20/G8 summit and then tells us that they will now tinker around with OAS, it has proven beyond doubt that Harper and company are unqualified, deceitful, and untrustworthy. I pray that election come soon to kick these people out.
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- Unfortunate Son
- - January 28, 2012 at 14:29:22
Your title should have read, " Seniors, Take Heed (Except Retired MP /MHA Seniors)".
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- Don J. Matte
- - January 28, 2012 at 14:23:27
Give me a break! How insulting to hear that in a country where the public sector is at the trough constantly under one guise or another that they have found someone who can't defend themselves. Sure why not pick on old people. Message to Harper," clean your house first, then we'll clean ours"
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- Kerri
- - January 28, 2012 at 14:22:03
What a slap in the face to the hard working seniors of our society! I believe it is ludicrous to ask seniors to work an extra 2 years before receiving OAS . The age of 65 has been the status quo for decades, people look forward to retiring at 65 and enjoying what little time they have left. And by people I mean those of us who have no private pensions to fall back on. I think it is very hypocritical of the Harper government to place financial hardships on the most vulnerable while the elected MP's will get pensions that they did not contribute to in the range of $100,00 yearly. Forget all the $ wasted on items like jets, prisons, swanky govt get togethers and government salaries, no we'll go to the old folks and make them work another few years to really earn the few measly bucks they will get. By the time people get to retire, they will be getting ready to move into an assisted living facility not enjoying their golden years. FYI I am not looking to retire for another 30 years but just had to touch on this topic as I think Harper is just getting really nasty playing with older people and their money who have no means of remployment if needed. Who would you hire, a 67 year old with a bad heart and mobility issues or an able bodied 27 year old fresh out of trade school? I think this will create a huge unnecessary burden on retirees and their families if he goes through with his agenda. There are so many other areas to cut back spending than this.Please voice your concerns to your MP's and MHA's before its too late.
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Are you for real? It's the boomers that caused this mess.