Is the Canadian Government Capable of Supporting Seniors?

The population of Canada is undergoing a profound transformation. In 2012, roughly one in every seven Canadians was a senior; by 2030, that figure will have risen to nearly one in every four. This unprecedented shift in our demography opens up new possibilities for Canadian society. It also poses difficulties, which the Government of Canada is determined to solve in order to safeguard both the well-being of seniors and the future prosperity of Canada.

Governmental Programs for Supporting Seniors

The federal government is primarily responsible for senior income security programs. Through Service Canada, they operate two main public pensions (‘income security’) programs: Old Age Security (OAS), which is based on years of residing in Canada, and the Canada Pension Plan (CPP), which is based on years of employment in Canada and the amount paid into the plan.

OAS and CPP Programs

For someone earning the average pay, OAS benefits account for around 14% of pre-retirement earnings, whereas CPP benefits account for approximately 25%. Retirement income is typically thought to replace roughly 60% to 70% of pre-retirement earnings in order for retirees to maintain their quality of life in retirement.

GIS Program

The GIS is a monthly income-tested benefit granted to those who receive OAS but have little or no other income. Income from OAS is taxed, while the GIS supplement is not. GIS must be applied for by older persons, and it will be renewed each year if they submit an income tax return.

Money Is Not the Issue Here

Although the Canadian government is trying to help the country’s aging population with financial programs, the main problem for the elderly is their access to doctors and home health services. Considering seniors’ inability to go to medical centers, arrangements should be made so that they can be treated and checked at home.