Yes, I’m about to get back up on my “let’s rein in the costly OAS program” high horse. I won’t go back over my general arguments about how there are many of us who are receiving more OAS than we should, and who don’t really need it. If you want to hear what I said previously, you can reread my article (Is It Time to Blowup the OAS … Is It Up to Those of Us Who Are Receiving It to Fix It?) that I posted earlier in the fall. But in quick summation, the OAS program currently costs 81 billion dollars a year, is ever increasing, and is the nation’s largest budget expense.
Today I am sharing a video of an interview that I saw on the Business News Network in the last few days that I would like you to watch. I have to share it with you here in a website post because, of course, if I attempt to put it on Facebook, no one in Canada will ever see it. Mark Zuckerberg and Meta persist in blocking Canadian news items on their platform.
The interview is one conducted by Andrew Bell with University of British Columbia Professor Paul Kershaw, the founder of “Generation Squeeze”. Professor Kershaw is an advocate for a reduction in the percentage of taxes being paid by younger Canadians to support retired Canadians. In this video, he presents a very thoughtful and balanced case for modifying the OAS payment structure, which should reduce the amount younger generations will have to pay to support us, while at the same time, ensuring financial security for retired Canadians.
At the heart of Professor Kershaw’s proposal is that the initial clawback point where we as individuals begin to repay OAS should be changed from approximately $90,000 a year per individual to $100,000 per year per household. Total clawback would happen somewhere around $150,000 for a total household income. This is in line with some of the suggestions I made, but a much more pragmatic approach where there are couples involved.
Professor Kershaw claims that 3/4 of Canadians and 3/4 of seniors support the idea of refinements to the OAS program that continue to protect vulnerable retirees, as well as lifting that financial burden off the shoulders of younger Canadians.
I fully understand that many of you would have no interest in altering the OAS program as it is currently structured. Fair enough. All I ask is that you watch this video and hear what Professor Kershaw has to say. You may have to watch an ad or two before the interview appears.
Follow the link below to watch the video on the BNN website.
