Statement made on 31 January 2012 by Senator Art Eggleton
Hon. Art Eggleton:
Honourable senators, I think the question then becomes: Where is the line drawn? If this will not affect current pensioners or people who are about to become pensioners, who will it affect? Remember that many Canadians, with the economic meltdown in the recession, have seen much of their pension retirement investments battered. These Canadians are counting on Old Age Security and maybe even the Guaranteed Income Supplement to help them out when they retire.
Many would agree that Canada will go through changes when the baby boomers retire over these next few years and decades. However, the experts disagree with the government's assessment. In a recent report, the Prime Minister's own Chief Actuary said that although Old Age Security costs will increase over the next 18 years, so too will Canada's GDP. Did we forget that the economy will also increase? It will cost 2.4 per cent of the GDP this year, the Chief Actuary says, but it will only rise to 3.1 per cent in 2030. He estimates that this will be the peak. Costs will slowly decrease after we have reached the peak of the baby boomers retiring.
Research was prepared by Edward Whitehouse at the government's request. He worked for the government as well as the OECD. He said: "The analysis suggests that Canada does not face major challenges of financial sustainability with its public pension schemes," and he went on to say, "There is no pressing financial or fiscal need to increase pension ages in the foreseeable future." Why is it threatening people who are trying to save up for their retirement? Where is the evidence that you need to do this?
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