The stage is set for big potential changes to the Canada Pension Plan, but off in the wings other changes are already being made to our national programs. In the March budget, the Liberals reset the start date for Old Age Security to 65, marking a major shift from the policy of other prosperous countries in the Organization for Economic Cooperation and Development, most of which are delaying state pensions — not making them available to relatively younger people.
The issue is who is going to pay for cost of living for people who have the luck — and the social burden — to live longer. Unlike CPP and the Quebec Pension Plan, which are funded by individual contributions, OAS is paid out of general revenues.
Click here to continue reading and see what our chief investment strategists, Graham Mayes, had to say on the subject.