Canada raises pensions for the first time since 1973
The changes come into effect as early as this week.
On July 21, the Canadian government announced a 10% permanent increase in the old-age pension (OAS) for seniors age 75 and older.
Excluding inflationary adjustments, this will be the first increase since 1973. The raise is expected to strengthen the financial security of 3.3 million retirees. Thanks to the increase, retirees will receive up to $800 CAD in their first year.
Under the plan, which was approved in August 2021, everyone born before June 30, 1947 and eligible for OAS will receive a lump sum payment of $500 CAD and then receive an increased pension.
"Today’s announcement is further evidence of our concrete commitment to deliver for seniors in Quebec and across Canada.<...> we’ll do what it takes to ensure all Canadians can age safely and with dignity. We will always continue to work to deliver for seniors!" — Pablo Rodriguez, Minister of Canadian Heritage.
The positive changes have been met with mixed reviews: Anthony Quinn of the Canadian Association of Retired Persons considers the measure discriminatory. He says that the government does not take into account the majority of needy people, and the innovation could set a dangerous precedent, splitting the community of pensioners into two classes.
Retirees in Canada are one of the fastest-growing demographic groups: the population aged 85 and over is expected to triple over the next 25 years.
