{"id":547470,"date":"2026-03-27T01:08:13","date_gmt":"2026-03-27T01:08:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/547470\/"},"modified":"2026-03-27T01:08:13","modified_gmt":"2026-03-27T01:08:13","slug":"cutting-oas-for-high-income-seniors-could-save-billions","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/547470\/","title":{"rendered":"Cutting OAS for high-income seniors could save billions"},"content":{"rendered":"

Old Age Security payments are under the microscope as Canada’s federal deficit grows. <\/p>\n

A University of British Columbia professor says changes to Old Age Security (OAS) could help reduce Canada\u2019s projected $78-billion deficit.<\/p>\n

Paul Kershaw argues the current income threshold for phasing out OAS benefits is too high. Under existing rules, retired couples earning up to $185,000 annually can still receive the full benefit of roughly $18,000.<\/p>\n

Kershaw says that threshold means only about four per cent of seniors are excluded from receiving OAS due to high income.<\/p>\n

\u201cThis generosity helps explain why OAS\u2019s rapidly rising cost is a primary contributor to Ottawa\u2019s $78-billion deficit,\u201d he said.<\/p>\n

A new poll by Research Co. suggests Canadians are open to changes. The survey found that three-quarters of respondents support reform\u2014including three in four Canadians of retirement age.<\/p>\n

About 70 per cent of respondents said OAS payments should be reduced for retirees with six-figure incomes. The proposal<\/a> includes lowering the household income eligibility threshold from $185,000 to $100,000\u2014a move Research Co. estimates could save roughly $7 billion annually.<\/p>\n

Research Co. president Mario Canseco says just over 60 per cent of those surveyed believe the OAS threshold should be the same as, or lower than, the $81,000 cutoff used for the Canada Child Benefit.<\/p>\n

Both Kershaw and Research Co. estimate that broader reforms could generate up to $20 billion in annual savings.<\/p>\n

\u201cThat\u2019s a huge amount of savings,\u201d said Kershaw. \u201cThat\u2019s enough to eliminate seniors\u2019 poverty by adding an extra $5,000 for every low-income senior, lifting them above the official poverty measure.\u201d<\/p>\n

He added that the additional funds could also double federal investments in housing and post-secondary education, while boosting child-care funding by 50 per cent.<\/p>\n

\"\"UBC professor Paul Kershaw UBC professor Paul Kershaw explains his proposal to lower the income threshold for phasing out Old Age Security. (CTV News) Ottawa responds<\/p>\n

CTV News asked the Department of Finance on Wednesday whether any changes to OAS are being considered.<\/p>\n

In a statement, the department did not directly answer the question, but said the government continues to focus on affordability and supporting seniors.<\/p>\n

\u201cIn recent years, the government of Canada has advanced initiatives and made investments that benefit seniors, including funding for home care and long-term care, and steps to improve health workforce planning,\u201d the statement read, in part.<\/p>\n

\u201cThe government also increased Old Age Security by 10 per cent for seniors aged 75 and older, providing an additional nearly $880 to full pensioners in 2025.\u201d<\/p>\n

RELATED STORIES:<\/p>\n

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