Here's How the Canadian Government Plans to Support New and Future Retirees
While most Canadians are eagerly waiting for the day they can retire, for some, it can be an almost impossible goal. Luckily, the government of Canada plans to make retirement easier for both current and future retirees.
On Tuesday (July 9) Jean-Yves Duclos, the Minister of Families, Children and Social Development, was in Markham to speak about measures the government has taken to make it easier to retire.
“Middle-class Canadians work hard and deserve to know that they can retire in dignity,” said Duclos. “The newly enhanced Canada Pension Plan will provide more money to Canadians while the changes to Old Age Security will mean they get this support when they actually start their retirement.”
The Old Age Security (OAS) program plays a significant role in providing income security to Canadians in their senior years.
However, due to changes made in 2012 that increased the age of eligibility for OAS benefits, many middle-class Canadians might not be able to rely on them when they start their retirement.
Private-sector pensions are also on the decline. Finance Canada estimates that 1.1 million families (24 per cent) nearing retirement may not have the money needed to maintain their standard of living after they retire.
For many Canadians, working to age 67 is not an option. That’s why, in Budget 2016, the Government reverted the age of eligibility for OAS benefits from 67 to 65 years old. With this change, Canadians will no longer need to wait two additional years to receive benefits.
The Canada Pension Plan (CPP) was also updated to help support middle-class Canadians and those working hard to join it.
The revised CPP will provide today’s workers with more money for their retirement, with increases of up to 50 percent in retirement benefits for today’s young workers. The improved benefits will help improve the retirement outcome for workers and ensures that fewer households are at risk of not saving enough for retirement.
The CPP will also support people with severe and long-lasting disabilities, as well as survivors and the families of deceased workers who had low incomes. It also includes measures to protect the benefits of parents of young children and people with disabilities.
The Government has adopted a national seniors agenda that involves initiatives to achieve four policy objectives:
- Improve the income security of seniors.
- Increase senior’s access to affordable housing.
- Promote healthy ageing and improve access to health care.
- Foster senior’s social inclusion.
The Government hopes that these improvements will help Canadians have the support they will need when they retired so that they can enjoy a safe, secure and comfortable retirement.
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