The debate over generational resources is heating up again, with a major seniors’ organization pushing back on the idea that older Canadians get too much help.BERNARD BODO/iStockPhoto / Getty Images
Good morning. Are seniors getting too much help from Ottawa? That question has been popping up as Canadians debate how the federal government should divide resources between generations. One of the country’s largest seniors’ advocacy groups is pushing back. Let’s get into it.
To cut back or to not cut back
The Canadian Association of Retired Persons, or CARP, was on Parliament Hill this week calling for the federal government to protect Old Age Security in the coming budget and reject proposals that would reduce benefits for some higher-income seniors.
CARP president Anthony Quinn took particular aim at arguments that OAS should be more closely tailored to retirees’ financial circumstances. He argued that rising home values or a comfortable retirement income don’t necessarily mean a senior has plenty of cash to cover everyday expenses and the cost of care.
“We reject the invitation to turn that frustration against an entire generation,” Quinn said. He referenced a recent cover story in Maclean’s about the wealth divide between older and younger Canadians, which suggested boomers are hoarding wealth.
Now, this isn’t a new debate. But it is taking on a new urgency as Gen Z enters the work force, millennials move through some of the most expensive years of raising families and buying homes, and a growing senior population pushes up the cost of retirement benefits.
Paul Kershaw, founder of Generation Squeeze and one of the most prominent voices calling for changes to OAS, argues that Ottawa should direct more of its spending toward younger Canadians and seniors with greater financial need. He has proposed beginning to reduce OAS once household income exceeds $100,000. Under the current system, the clawback is on each individual’s income rather than a household income.
It’s important to note that the federal government has not announced anything about plans to cut OAS. Quinn said CARP’s concern comes from the growing public debate over the program and the possibility that it could attract attention as Ottawa looks at its spending ahead of the fall budget.
So, for now, your OAS cheque isn’t changing. But the debate over who should receive the benefit, and how much government support retirees should get, is getting louder.
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The Calculator
Falling fertility rates could create challenges for future retirees. Birth rates have dropped below the level needed to maintain the population in many countries, a trend that could slow economic growth, put pressure on pension systems and immigration policy, and ultimately push people to retire later.
The Retirement Receipt
The concept: Personal finance columnist Rob Carrick says instead of sacrificing experiences now to save for a more lavish retirement, younger Canadians can spend more on things such as travel, concerts and dining during their working years, figuring they’ll have a quieter retirement later.
The trade-off: Spending more today means less money compounding in TFSAs and RRSPs, and potentially less money for major costs later in life. But Carrick argues the approach recognizes that some experiences may be more enjoyable, and affordable, when you’re younger.
My two cents: It makes me think of my coverage on young folks taking “mini-retirements,” by taking time off work during their working years to travel, even though it puts a dent in their savings. No one I interviewed said they regret it.
Best of the Rest
💼 More young Canadians are turning to side hustles. Nearly one in four Canadian adults reported having a gig or side hustle in 2025, as a tough job market, high living costs and concerns about AI push some younger workers to build multiple sources of income.
🏠 A new rewards program wants to help Canadians save money on buying a home. Quarters gives users points based on everyday spending, including groceries, restaurants and even rent, that can eventually be put toward a down payment or real estate commissions. Of course, that means you have to grant access to all your spending data.
🍽️ Thanksgiving looks a little different in the age of Ozempic. As GLP-1 drugs grow in popularity, some Canadians are adapting their holiday traditions with smaller portions, different recipes and earlier dinners, while also navigating questions from family about how much they’re eating.
💰 Older Canadians are less confident about their retirement finances than younger generations. A recent BlackRock survey found 70 per cent of Gen Z respondents feel on track for retirement, compared with 51 per cent of Gen Xers, as worries about inflation, market volatility and outliving savings grow as retirement gets closer.
Try This
🛒 Want to cut your grocery bill? Try shopping more often. Globe reporter David Berman found that buying groceries for just two or three days at a time, rather than stocking up for the entire week, helped his family waste less food and spend less overall.