Overview

Abstract (English)

The federal government announced in its 2012 budget its intention to delay the age of eligibility for Old Age Security and the Guaranteed Income Supplement from 65 to 67 years. By the time the policy is fully implemented (i.e., in 2030), this delay will have increased net revenues of the federal government by 7.1 billion dollars per year (in constant 2014 dollars), but will reduce net provincial revenues by 638 million dollars. With constant labour and savings behaviour, this delay would also increase the percentage of individuals aged 65 and 66 years who are in the low income group from 6% to 17% (for an additional 100,000 low-income seniors in this age group) and would be most harmful to low-income seniors and to women. Alternative reforms to the Old Age Security could make it possible to achieve similar effects on public finances without having such large impacts on the low income rate among seniors.

Abstract (French)

Le report de 65 à 67 ans de l’âge d’admissibilité aux prestations fédérales de la Sécurité de la vieillesse et du Supplément de revenu garanti augmentera les revenus nets du gouvernement fédéral de 7,1 milliards de dollars (en dollars constants de 2014), mais diminuera de 638 millions de dollars ceux des provinces. Sans changement dans les comportements de travail et d’épargne, ce report devrait aussi hausser de 6% à 17% le taux de faible revenu des individus de 65 et 66 ans et affecter particulièrement les aînés à faible revenu et les femmes. Des réformes alternatives permettraient d’obtenir des effets semblables en termes de finances publiques sans entraîner de tels impacts sur les taux de faible revenu des aînés.