Thousands of Canadians are calling on the federal government to reform retirement income subsidies like the Old Age Security (OAS) pension, according to a recent report.
Generation Squeeze, a non-profit think tank advocating for young adults, collaborated with Research Co. to poll 1,001 Canadian adults on OAS reform from March 12 to 14, 2026.
The results found that 73 per cent of Canadians agree that the government should cut OAS subsidies for seniors with six-figure incomes. Thirty-one per cent strongly agree, and 42 per cent somewhat agree that Ottawa should lower the household income eligibility threshold for the pension from $185,000 to $100,000.
Generation Squeeze
Under current rules, retired couples with annual incomes of $185,000 can still receive the full $18,000 pension. According to the latest Statistics Canada data, about 400,000 seniors live in poverty.
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“Our new national poll confirms that most Canadians know this no longer makes sense,” the report argues.
The organization says targeting the OAS to households below that threshold would save the government $7 billion annually.
“The $7 billion annual savings can be used to eliminate seniors’ poverty and reduce living costs for younger Canadians,” reads the report.
Generation Squeeze says that support for this reform spans across regions, incomes and political parties. It found that roughly eight in 10 Liberal, Conservative and NDP voters are in favour of changing the OAS to make it more “responsible, modern, and fair.”
Generation Squeeze
According to the report, cutting the OAS threshold for high-income Canadians would ask just 20 per cent of retirees to accept modestly smaller subsidies — $3,000 after tax on average. For 80 per cent of pension recipients, benefits would be protected or improved, including for those who live alone, the report suggests.
“Canadians understand that households with incomes of $185,000 don’t need more money from taxpayers to cope with rising living costs,” argues Generation Squeeze. “We can tackle affordability pressures by better targeting cash subsidies where they will help the most.”
The poll also found that six in ten Canadians agree that the government pension should be the same or lower than the threshold for the Canada Child Benefit, which is currently set at $81,000.
Generation Squeeze
“This bold move would increase annual savings from $7 billion to nearly $13 billion,” it reads.
Generation Squeeze shared ways the billions of dollars in savings could be allocated.
It suggests that $2.5 billion annually would deliver a $5,000 boost to every senior below the official poverty line, possibly eliminating seniors’ poverty in Canada.
Other possible investments include:
Strengthening the National Housing Strategy to avoid planned cuts after 2027
Boosting Canada Student Grants instead of letting them decline
Accelerating implementation of $10-a-day child care
Introducing a Youth Employment Supplement to help young workers get established in a difficult job market
Funding the new Grocery and Essentials Benefit
The organization is urging Canadians to sign a petition calling on the federal government to reform the OAS.
For more details, check out the full report.
What do you think about cutting the OAS for high-income seniors? Is the current subsidy enough to help you afford living in Canada? Share your experience with us at trending@dailyhive.com.