The McGuinty's offer of a 10% reduction in our Hydro bills is in no way to be considered a benefit when it was announced Hydro rates would escalate 46% over the next 5 years and then look at the HST started in July of this year helped me in making my decision to show one and all how the 65 and over seniors were and will be affected based on their present incomes of Canada Pension Plan ( CPP ), Old Age Security ( OAS ), Guaranteed Income Supplement ( GIS )
CPP per month $934.17
OAS per month $518.51
Total per month $1452.68
Total per year $17,431.16
Poverty line per year $18,373.00
Below poverty line $940.84
Below per month $78.40
OAS per month $518.51
GIS per month $654.47
Total per month $1172.98
Total per year $14,075.70
Poverty line per year $18,373,00
Below poverty line $4297.30
Below per month $ 358.10
The government funded CPP and OAS or OAS and GIS allowance guarantee a minimum income for older Canadians that is not enough to lift all older persons above the poverty line. The maximum value of the public pensions falls well short of the 50% to 70% of pre-retirement income to maintain decent living standards. The government expectations were that people would supplement public pensions with their own savings through membership of a pension plan at work but the government neglected to realize most Canadians didn't have a workplace pension and if such is the case these Canadians if having any savings will be forced to use them up because of the public pension plans being below the poverty line.
OAG and GIS are in urgent need of improvement.I have been given to understand a proposal has been made to increase the GIS benefit by 15% but in my opinion the OAS should also be increased 15 % as it has been part and parcel of the governments benefits keeping below the poverty line for the simple reason without the increase those receiving the CPP and the OAS will still be below the poverty line.
All of the above figures are based on one recipient. If a couple the maximum is slightly over the poverty line.
I should clarify what the GIS is, it is an income benefit payable to lower income seniors who are also receiving OAS and have little or no other income. Please note the GIS is not taxable.
The statistics as outlined were obtained off a Statistic Canada report.
OAS provides about 13% of a pre-retirement earnings and the CPP provides another 25% for a total of 38%. Seniors, have been found, require 70% of their pre-retirement earnings to maintain their standard of living in retirement. The existing benefit figures show the senior is short 32% of their pre-retirement earnings.
The question, When is the government going to make a move and increase these benefits as this proposal has been hung up for a very long time?
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