The federal government should reform old age security by cutting the amount going to wealthier seniors in order to give more to Canadians struggling with affordability and help shrink the federal deficit, advocates say.
Old age security (OAS) is a federal benefit available to Canadians aged 65 and older, with certain monthly amounts paid based on income, age and residency.
But advocates like Generation Squeeze say this means higher-income Canadians who may not need the extra money as much as those with lower incomes are still getting these payments automatically.
The group notes that old age security is one of the most costly contributors to Ottawa’s federal deficit, which was projected in the spring economic update to be $66.9 billion in the 2025-26 fiscal year.
Paul Kershaw, the founder of Generation Squeeze and a policy professor at the University of British Columbia, spoke in a House of Commons press conference Monday.
“That’s a scale of ambition to address affordability that we haven’t seen in my professional lifetime, and it is in reach for this prime minister and all of his cabinet at a moment that we cannot afford to be spending our dollars unwisely,” he said.
Generation Squeeze says Canada will send $17.5 billion a year in OAS subsidies to retirees with more than $100,000 in combined household income by 2030.
Get daily National news
Currently, the government of Canada lists those aged 65 to 74 as eligible to receive $743.05 maximum a month if their annual net world income is less than $148,451. Those aged 75 and above are eligible to receive $817.36 maximum a month if their annual net world income is less than $154,196.
The federal government says if an individual made a net income that exceeded $90,997 in the 2024 tax year, those earners may need to repay part or all of their OAS pension.
The main suggestion for policymakers is not to reduce OAS payments overall, but to redirect funding to send less to those higher-income earners and more to those making below those thresholds.
- U.S. inflation hits 3-year high with gas prices climbing amid Iran war
- Are headlights too bright? Nearly 380K Canadians told Ottawa their answer
- Interest in ‘The Clifton’ multi-million dollar condos a reflection of Edmonton real estate
- Breakfast brewskies: Alberta bars, restaurants now allowed to serve alcohol at 6 a.m.
This, researchers say, should be done by lowering the current income threshold for when OAS benefits begin to gradually phase out — for couples, from about $185,000 down to $100,000.
Changing the OAS claw-back threshold this way would funnel about $5,000 more per year in OAS payments for retirees who fall below official poverty measures.
Doing this would also save the federal government $7 billion annually starting this year, and $9 billion by the year 2030, which Kershaw says can be directed to help address affordability on multiple fronts.
“It allows us to, for a million young people, do substantive rental subsidies, help a million post-secondary students withstand what would otherwise be a cut to their support, actually meet the target of $10-a-day child-care spaces set by Ottawa, a billion and a half dollars to address youth unemployment further, and, first and foremost, eliminate seniors’ poverty by adding that $5,000 for every retiree who falls below the official poverty measure.”
In a poll from earlier this year, Generation Squeeze found that nearly three-quarters of respondents supported these measures. Those same supporters said it was only on the condition that the savings be used to eliminate seniors’ poverty and reduce living costs for younger generations.
Stop giving this guy so much airtime.
How much is he paid from the government to attack OAS? How about make politicians accountable for their financial decisions that lost billions in government funding? How about identifiying fraud in CRA filling? There are so many other opportunities to recover billions. Stop attacking hard working citizens that for years contributed to this fund eorking hard to make Canada better. Go after those that did not work for it. Cutting benefits to retired citizens will just make them leave Canada. What is here for them to stay? Crippled health care, high taxes, deteoreting roads, high food prices? Why stay if another source of income in retirement is lost. Leave OAS alone.
Taking from seniors who have worked hard all their lives — and paid exponentially more taxes than the young people this clawback is ostensibly going to help — is insulting. People in their twilight years are generally on fixed incomes. They are not hireable because of their age, so have don’t have any mechanism to improve their economic situation.
Leave the OAS program alone. Although I am not of OAS age, I agree with many of the commenters here. Why should people who have paid into social programs for decades be asked to give up support in their old age, in order to subsidize young people who somehow haven’t been able to save enough to rent an apartment? In my neighbourhood, at least, those same young people buy one or two fancy Starbucks coffees a day from the place down the hill, while also ordering Uber Eats and Hello Fresh at least once a week.
Or, if we’re looking at the $10-a-day child care subsidy, why should seniors be expected to support families who drive expensive brand-new SUVs to their child’s daycare? There is one such daycare next door to me, and the owner told me that he had been threatened by two of these well-heeled clients that, if he didn’t license his daycare and give them the $10 rate, they were going to take legal action. He’s timid, so he gave in, but these are the kinds of people seniors are being asked to rally around.
Seniors on higher incomes already have their OAS clawed back, despite paying for this benefit for decades through their taxes. I’m not sure why anyone would think that those who receive this pittance of a subsidy (around $800 a month at the top end) should be required to cheer at a paltry additional $5,000 a year, when the subsidies being promoted for young people and young families will likely exceed that amount.
Just wait till the 40 million elderly from around the world that are now CANADIAN CITIZENS descend on our “free healthcare”. What the liberals have done is a crime against humanity and the tax payer. ELBOW UP, EXPECT LONGTERM CARE RENT TO SKYROCKET.
Re OAS. A senior who has a private pension that exceeds the OAS should not receive the OAS. It was introduced to help seniors who did not have a job related pension.
Re OAS If any senior has a private pension that exceeds the OAS they should not get the OAS The OAS was introduced to help seniors who did notwork at a job that paid a private income.
What’s a “couple” ? Why does “couples” have anything to do with an INDIVIDUAL entitlement program ? Individuals work, individuals pay taxes, individuals retire, and individuals have expenses. The only thing of those four that applies to “couples” is possibly (and only partially at best) item 4, expenses. But even that is suspct. The only real “shared expense” a”couple might have is housing and utilities. “Couples ” do not eat, however individuals, even two of them, do. Kershaw uses “couples” for one reason only…to grossly exaggerate the OAS clawback limits. There is no such thing as an “OAS clawback for couples”.
This would be the first thing I ever got from the federal government in my entire life no baby bonus no nothing take it away and that government will never see my vote again and there’s many like me. Some of us are sick of paying for people that couldn’t plan their lives better that’s they’re doing and they live with it.
Plain out stupid I worked my ass off all my life to get where I’m at the rest of unfortunate soles should have done the same
How much are we spending again for the world cup games in Canada?
You paid into it only 10 percent of what you take out. If you make 150 thou a year you don’t need this” welfare cheque” your just suffering from greedy old gold fever. Take what you can eat. Then leave something on the table for a hungry senior.
I think it would be appropriate to end OAS completely and send all of the proceeds as a form of reparation to indigenous peoplekind.
How about increasing the number of years needed for Canadian politicians to qualify for their lucrative pensions, as well as decreasing the excessive tax free portion of these pensions. That would be a big step toward putting food on the tables of poverty stricken Canadians. Not much chance of that happening of course.
Disturbing to see this “seniors bashing” trend – cut off OAS, how to get seniors out of their homes so millenials can buy them, a Census wanting to know how many bedrooms there are in your dwelling after articles again on seniors sitting on multiple bedroom homes. Gov’t wastes billions on no end of idiotic spending so just butt out with the ageism.
How about ensuring everyone actually pays their taxes, end corporate welfare and leave seniors with the little they get?
51yo Phd in Political Science kid. Never held a real job. 10 layers removed from those who built the country.
Paul Kershaw is always against seniors.
Message to these idiot’s that dream up this C r a p. It’s not about the pittance you give senior’s its about the cost of everthing we have to pay out just to survive
Peanut gallery comment to cut these more and as said, pay us back the money we paid and saved for these benefits we’ve paying for 50 years!!!
How about the government pay back every penny I have paid into CPP with 2% interest and I can retire comfortably. Let the people wanting reductions pay out of their pockets.
I always use the take your money and run metaphor on wealth redistn. Suppose you save throughout your life and your brother rents a porsche instead. You both hit 65 and since you diligently save ls yiu are wealthier but the govt says you must pay part of your OAS to your brother cause he is poorer than you. GTGOH with that skewed rationale. These economic think tank bottom feeders should try building wealth instead of advaocating the theft of others’
Groups like Generation Squeeze need the Luigi Mangione treatment.
These parasites steal from hardworking Canadians while saying we need to share our money while they live the highlife.
Leave my OAS alone and stick to whatever you know as a professor of whatever!
Funny, thus is what harper wanted and the lib voters, media and party cried fascism, killing grandma etc. Its amazing the pass skid Mark Carney gets.
Perhaps reform should start with ensuring that the untra rich pay their fair share.
Very drastic. I realize monetary conditions are stretched.
we would be affected as our combiner income is over the threshold . We are also living rent free. We are living day to day and it’s a struggle.
No health insurance, only one retirement income.
This plan would dramatically affect our lives.
Barry
Generation whining babies can kiss my ass. All these people do is complain and ask for more. Drop dead!!!!!!!!!!
ANAND RUNNING AROUND HANDING HARD EARNED PAID ALREADY TAX PAYERS MONEY OUT TO THE WHOLE WORLD LIKE SMARTIES. THEN ASKING ME TO GIVE BACK MY OAS TO HELP PAY DOWN DEBT. SOUNDS LIKE A GREAT PLAN. MAKE SURE TO KEEP VOTING LIBERAL
I am 80, retired 15 years ago in BC, and doing fine with way less than $ 100,000.
Totally agree, let’s help the people who are struggling.
I doubt the net effect (OAS received minus clawback) will equal anything like the numbers anticipated by Generation squeeze. Still there may be an argument for not paying it out in the first place if it’s just going to clawed back.
Phuzck off. The government took the money off these people like everyone else. Quit sending billions to Ukraine and to all the world and look after Canadians.
Wealthy or not, the government promised $$ to ALL retirees. It doesn’t matter how someone spends the money or how much they need it. A promise is a promise. Don’t let them do this.
I have requested (ignored) to Federal Govt. to introduce MAID for 70 and above citizens, as an option for volunteers. Offcourse it should not be misused for running away from any chrime or debts. Govt. will save OAS, Medical expenses and many more.
If they are going to take from the higher income seniors to give to the lower income seniors how are they saving money the deficit will still grow unless the government stop wasting money and giving money to other countries. Why don’t the politicians help the deficit by taking a reduction in pay and taking expensive lunches and other allowances that get billed to the taxpayers. That may help to reduce the deficit
too many old refugee freeloaders getting something for not having paid adime into canaduh send the deadwood back to india
The reality is, there will always be those who have the opportunity to create a generous retirement income, and there will be those less fortunate on a sliding scale down to poverty. That’s the way the world turns, like it or not.
Yes, it’s likely there will be people who did little about retirement income generation.
The pragmatic approach is the higher the income, the less eligible and need for OAS, so shifting the eligibility threshold is likely to happen. It’s the fairest way to redistribute, particularly if phased.
If I had a retirement income of $100,000+, I would not expect or want a few hundred in OAS after Threshold Tax, that would be greedy to do so.
Remember, there is only so much money to go around. As such, directing the “savings” to National Debt reduction or the health system, I would find far more acceptable than keeping it.
So I work hard my whole life and pay into CPP, plan my retirement around it and it could be snatched away?
Once again the liberal propaganda machine drives in another divisive wedge… I worked hard to get to the point to retire… now I don’t get what I paid into because someone who hasn’t put the time and effort into getting ahead for a future needs to be equal …. this used to be a great country… now it’s a country of hand outs….
A poll conducted by this organization found that most people supported their ideas. How shocking. Maybe we could start trimming the fat by zeroing in on tenured professors with big fat pensions that the rest of us are paying for.
And so it begins comrades. Steal money from pensioners to fund Brookfield, Somalia, Ukraine and anywhere else but Canada and Canadians.
Not to worry, chairman mao Carney will make sure seniors get their stipend of rice and beans or mandatory MAID. Take your pick.
Stop using taxpayers money to prop up Brookfield and jail liberals for corruption green slush 500 billion theft, stop funding liberal controlled media 5 billion annually. Those liberals in jail forfeit gains, pensions and pay from endless theft.
Solved, closed Canada Post ASAP.
Poor people are typically poor for a reason. Sorry to say that.
Do what you do best print more money.
I did agree wholeheartedly. Problem is you are punishing those that planned for retirement. And rewarding those that don’t!
Squeeze more money from those who worked hard their whole lives. While not flinching giving other countries billions. Why not start sending some money home for reals. Not 2% at a time and pat yourself on the back in the media to make yourself look like you’re giving us a gift with the money we gave you and you mismanaged it. Thank you from a canadian that worked for over 40 years. But we are old and don’t matter anymore.
Why hit the people that worked hard and served the country while the government is handing money out to private jets other countries ect
People should be making these decisions on a vote
Stupid idea. Reward those that spent their money on booze, drugs, cigarettes, tattoos, gambling and big trucks and penalize those who worked hard for a comfortable retirement.
Quite manipulative message. The author seems to forget about the clawback (recovery tax).
The statement “Those aged 75 and above are eligible to receive $817.36 maximum a month if their annual net world income is less than $154,196” should be “Those aged 75 and above are eligible to receive $817.36 maximum a month if their annual net world income is less than $90,997”
As someone who has worked hard their entire life and saved for retirement, why should I be penalized for those that didn’t or never contributed to Canada 8n any way. Maybe stop handing it out to people that have never worked in Canada. Canada spends billions $$ in handouts to other countries while running up huge deficits and expecting Canadian seniors to pay for it? We’ve paid enough taxes.
Keep voting for the Liebrals…good wake up call for the sheep
Why give this Mo Ron a platform to spew more garbage and create division? Shame on Global news.
Sorry but Canad8an seniors have contributed for years, all while billions of dollars are wasted, sent overseas. High time the Canadian government stats tak8ng care of their own people and cut spending outside Canada.
Love it. The Boomers voted for Liberals then the Liberals screw the boomers.
Cut other expenditures rather than tax wealthier seniors! Why not stop giving money always to endless international causes and keep the money for Canadians? The clawback already addresses your Robin Hood approach to taxation. Wealthier Canadians already pay more than they should! Canadians who chose to not work during their younger years, or live off excessive social programs, will simply suffer. It was their choice and I do not feel sorry for them. If able bodied people want more – tell them to work for it! Remember, the wealthier Canadians can choose to leave Canada and you’ll soon be the “wealthy Canadian” the government looks to for more tax dollars. Enough of this left wing nonsense. Get to work like the seniors did while you were in diapers!
Setting generations against each other. I cant believe you support this guy by giving him publicity. A guy who trains young people to blame their problems on senior citizens. You know what’s next eh?
It boggles my mind that we always want to take away from those who studied, and/or sacrificed and made choices to save money. Bring your own lunch, limit the times you go out to eat or order lattes. So that someone can give it to another group that has not made those choices. Imagine the impact on rental markets when you provide rental subsidies. It’s completely ridiculous. I am one of those that got 0$ for kids. Only benefitted in the final year of our last child for lower daycare fees, and the thanks we get is to wait in line when we need medical help.
Help give people opportunities not handouts. We’ll need people to help the elderly as well as manual and educated labour for these mega projects.
Academic Nonsense!
Those of us who worked and contributed all of our lives have earned benefits like OAS. If we were fortunate enough to make more money, rest assured we paid more income tax for exactly the same services and benefits those who earned less recieved from our governments. In fact likely less because we were working and never qualified for certain tax breaks, EI Benefits, etc.
Governments at all levels waste money on legacy or vanity projects. For example high speed rail, hockey arenas, and trips around the world.
For the academics out there, some but not all, who live in the real world I would be happy to hear a real solution. To those who have most of themselves buried in the make believe world academics normally populate, leave other’s benefits and earnings alone.
This is typical academic nonsense. Those of us who worked all our lives and contributed to support OAS have earned the right to recieve OAS.
I look around and observe those in our community who contribute nothing to make it a better place but this academic wants to take my benefit and give it to them so they can do more of nothing?
Governments spend a lot of money on vanity projects and greasing the squeaky wheel. Stop wasting
Why not forget about reducing the amount of oas given to seniors who have worked hard all their lives and saved to enjoy their retirement. Why doesn’t the government reduce funding outside of Canada and use that freed up money to provide a program like oas more funding.
Stop trying to take away money from people have worked 40 years.
So, we should all forget to save for our retirement because it is somebody else’s responsibility to save for us?
It should be my choice to choose the mega cable subscription instead of buying RRSP’s?
I don’t need another secondary job or work extra hours and be away from my family because someone else is going to put the effort into saving for my future?
I find this instills a lazy mindset and terrible message to send to our fellow Canadians.
My wife and I did the right things. We went to school and got an education, we got jobs and had careers, and we raised a family. We didn’t squander our money on excessive vacations or fancy cars, we put something away to fund our retirement. We have been fortunate and invested well.
Now you want to reduce my OAS so that someone who pissed away their opportunities and money should get more.
I DON’T THINK SO!
Why don’t some politicians take a pay cut? Slippery slope for the seniors as always.
Kershaw is a moe Ron.
By all means send less to those who end up paying it back in taxes anyway..that’s just giving them an interest free loan and I would rather not have the hassle of paying it back..
Hopefully, if this gets any traction – and I’m hoping it does not – thresholds would be regionally adjusted. E.G. household incomes in Quebec or New Brunswick exceeding $100K go a great deal further than seniors in Vancouver, Victoria or Toronto.
Well another slap in the face for hardworking Canadians! Cut Indian affairs budget, this group has not paid their dues and is addicted to our tax dollars.
I am a single parent. I retired 2024. I was a nurse . I didn’t work 2-3 years because I got covid . I got my severence which made it look like I made more, so I was meant to get 600 then suddenly they decreased it to 200. I still have my two kids and two grandchildren living with me. I don’t think it’s fair for those of us as single parents to be penalized. I worked hard for everything and now it is being taken away.
Wait I know how about you actually tax the corporations and the rich who do not pay their fair share of taxes. I am sure we could end any shortfall we have with all social programs. Maybe lets do that before you take from the bottom again start at the top
@colleen smith all of the wrongs you have described are due to government policies, not the boomers. The boomers are great scapegoats so lets punish them for the bad policies of mostly Liberal governments of the past, and for the national debt that was doubled by Trudeau and now Carney through deficit spending that causes us to have to service the debt to the tune of $57 Billion this year alone. Inflation is the result of bad government not the boomers.
This looks like the liberals floating this idea again, through external channels. Carney needs to state firmly that this is not going to happen. So much for voting for the liberals!
This is the best idea I’ve heard in years.
Yeah, stick it to Gen-X once again. Boomers were the ones earning the most when prices were still low and savings paid interest. We were the ones who graduated into a recession, were stuck in entry level jobs because of the glut of baby boomers just ahead of us, clogging up jobs until they started to retire and we were considered too old to promote. Who were house shopping when interest rates were sky high, had stupid mortgages, then watched interest rates bottom out when we started to be able to save, and are looking to retire in 5+ years, when the policy would be set, but $100,000 won’t be worth squat. Thanks.
@FC I bet you blame the folks that cannot find affordable housing as being their own fault too. I feel sorry for the people in your life with your attitude.
I am 150% against this. To drop that threshhold to 100,000 from 185??? It’s not like this is a bonus from the government..I HAVE PAID INTO THIS MY ENTIRE LIFE. Ive never taken unemployment..Ive paid my taxes…and I dont make a lot of money. It has taken me so long to even get to an income that is somewhat comfortable and now you want to claw that back? I worked for that. I saved when I had barely anything to save..I said no to myself…hardly ever treated myself…didnt go on trips or buy myself expensive things. Even doing all of that, I will barely have enough to get by and I have planned my retirement based on what I was supposed to get from the government. My husband and I together would be hit by this because we barely go over that threshold and it would sink us. To think that someone feels entitled to take that money from a fund I have put into for 40 years which would force us to sell our home just to get by….it’s just a level of entitlement I never thought I would see in our lifetime. I want to help people less fortunate…I DO help people less fortunate but there are other ways to cut spending that doesnt include robbing seniors of the retirement they’ve worked so hard for. When I first saw an article like this I thought it had to be a joke…well Im not laughing anymore.
Most Seniors cannot live on what they get now without some assistance. This fool wants them to try and live on less? The OAS is already clawed back starting when you earn at a certain level. We all know how expensive stuff is now so the cut off should be raised, not lowered.
I worked all my life since I was sixteen to get my OAS payment. My wife and brother also have worked all their lives for it. My wife passed away when she was sixty two and my brother at sixty so they never collected a cent. You wanna take mine no problem, just give me back what I put into it and I will look after it on my own.
Stop trading on the people who have worked hard and paid their taxes with a legal expectation that they will be looked after once they cannot work anymore.
Wealthier people get their OAS taxed back from them, along with huge extra payments.
Lower your standard of living, and live as the seniors of today lived.
There will be less homes for sale as seniors (a couple) would not be able to afford to live in a retirement home.
Sure. Then a 30% flat tax rate on anyone earning gross over $120K with NO LOOPHOLES! No getting out of it, simple 30% of whatever your gross earnings are. Not net earnings, but gross earnings. So nothing can be hidden under net costs. You make more you pay more, simple as that.
How about reforming it to solve the retired Canadian’s deficit. The average CPP payment is $800/month (and that is our own money). OAS is about $800/month (and that is the most the government can pay – it should be the same as disabled pay)
Nobody can live in a city apartment for $1,600/month. That is what the government thinks would cover shelter, food, transportation, entertainment, clothing.
Refugees get more… think about it
I was born in Canada, my mother, father and grandparents were all born in Canada. I just searched to see what is required to obtain OAS. It’s shocking that a person can become a Canadian citizen and never worked in Canada to be eligible for OAS. They never worked so never contributed a penny but will receive this benefit. The need to have lived in Canada to obtain OAS is 10 years.
How about we tax the rich properly before, we take away benefits from hardworking Canadians who have paid their fair share.
So the idea is to incentivize being poor and disincentivize being well-off, right?
There is indeed a need to not only balance the budget but to reduce the debt. Charity begins at home – cut the overseas aid programs first, then the lavish ceremonies, expense accounts and executive travel. The problem does not only rest with our government. Many seniors are in difficulty through no fault of their own but some are struggling because they spent with abandon during their earning years and now want more money to compensate for their own lack of fiscal discipline. For those, I have zero support or sympathy.
We don’t need OAS if government pay real pension contributions for 2025 was employee $ 4430 and employer $ 4430 we paid 8860 to CPP after 35-40 year engh for CPP to be $ 40 000 a year. Where did money go???
The suggestion is to take away from the highest contributing seniors? The ones that went without for decades so that they could save for retirement and give their hard earned dollars to those that enjoyed their life and saved nothing for their old age? This is offensive and disgusting!
I appreciate everyone who would give up their OAS to help struggling seniors live a better life.Too bad some of the billionaires won’t pay more taxes to help they wouldn’t even miss it.Hopefully the government doesn’t drag their feet on this it needs to happen now.
I am a senior and 100% support this. If a person is earning 4-5 times what I earn is being paid the same amount of OAS as I am, something is wrong. What the heck do these people even spend their money on? We have become a society of greed. I want to see people truly in need get assistance, not people that already make plenty to live on comfortably.
I received $460/ month for OAS , now how lower you want to cut to ? to $300 ? do you know how $460 worths nowaday ? If you earn $460 / month , can you survive ?
4 300.00
The current generation of OAP recipients during their working life were the BIGGEST contributors to the tax base EVER, and paid for over 40 years, and now that it is time to give them what they have earned, this Carney Liberal government, the ones who doubled our national debt in just 10 years and who have created the huge deficits and who cost us $59 BILLION this year alone to service the debt, want to take away our earned pension. Hell no !!! Let them and their crony capitalist leeches be the first to lose their pensions and government handouts.
First stop sending billions of our tax dollars to Ukraine and other countries, stop paying for those who cross into Canada illegally (it’s NOT irregular) and return them back to the USA a safe third country right away instead of delaying for years and paying legal and housing, food and healthcare and giving them other financial assistance. Stop spending our taxes on anything that is not absolutely necessary in supporting Canadians.
Willow
May 25, 2026 at 1:09 pm
Here is a novel idea. The politicians have created this deficit how about they taking a reduction in pay to help pay down the deficit
Nope, every April 1st they will continue to get their raise.
Here is a novel idea. The politicians have created this deficit how about they taking a reduction in pay to help pay down the deficit
The Liberals need to first look at themselves to reduce deficit spending, $730,000 to rent a private jet to fly Carney to a photo op, $900,000 to have King Charles give a speech to parliament, the Governor General spending like our tax dollars are water, and on and on and on, before looking at ANY cuts to OAP or any other benefits earned by Canadians. It starts with the wealthy but we can be sure it will end up being reduced or eliminated for those who need it. This Carney government is hypocritical and can start with themselves and their cronies first.
You realize that a household income for 2 people of $100,000 = $50,000 each. That is NOT wealthy, especially when part of the income is OAS & CPP!
maybe stop giving all my bloody tax dollars away to other counties
how about the novel thought of having to live in Canada for 25 years, rather then 10, to many new comers that have never worked in Canada receive it