Democracy Gone Astray

Democracy, being a human construct, needs to be thought of as directionality rather than an object. As such, to understand it requires not so much a description of existing structures and/or other related phenomena but a declaration of intentionality.
This blog aims at creating labeled lists of published infringements of such intentionality, of points in time where democracy strays from its intended directionality. In addition to outright infringements, this blog also collects important contemporary information and/or discussions that impact our socio-political landscape.

All the posts here were published in the electronic media – main-stream as well as fringe, and maintain links to the original texts.

[NOTE: Due to changes I haven't caught on time in the blogging software, all of the 'Original Article' links were nullified between September 11, 2012 and December 11, 2012. My apologies.]

Tuesday, April 17, 2012

OAS rollback will hurt low-income seniors: report

Many Canadians will spend their golden years in poverty, if a government decision to change the eligibility age for retirement benefits isn't reversed, according to a report released by the Canadian Centre for Policy Alternatives.

The report notes rolling back Old Age Security (OAS) eligibility to 67, from 65, not only will create hardship for seniors unable to delay retirement — those who are sick or in physically demanding positions, for instance — but also for low-income Canadians who desperately need that benefit to get by.

"It means suffering for people in their old age," says Angella MacEwen, a CCPA research associate. "Choosing to work longer is one thing. But forcing Canadians without workplace pensions or large savings to work full-time past 65 is unfair, especially given the high probability that the jobs many are able to find will be part-time and low paid."

In her report, released Monday, MacEwen notes it would take a considerable amount of hours working in low-wage jobs or self-employment to replace the maximum OAS/GIS (Guaranteed Income Supplement) benefit of about $14,000 per year for individuals, or even to replace the basic OAS benefit of a little more than $5,000 per year.

For many Canadians, in fact, it will require doubling their annual income.

"Half of seniors who are self-employed make less than $5,000 a year. OAS is $5,000 a year," says MacEwen, who notes that this burden is especially problematic given the fact low-income seniors — particularly men — have a lower life expectancy.

"What this means is that people will be spending their last years in poverty."

In forcing lower paid workers to remain in the labour force an additional two years with no OAS benefit — as per federal changes to be phased in over six years starting in April 2023 — MacEwen argues many seniors will be forced — to some degree — to compete with younger workers for entry-level, part-time jobs.

She adds a significant number within that group will simply be unable to do so due to health limitations or caretaker responsibilities.

Indeed, more than half of fully retired workers older than 55 have three or more chronic conditions, such as high blood pressure, diabetes or arthritis.

"We've done a really good job of reducing poverty for seniors in Canada, and this is a step backwards," says MacEwen, a senior economist with the Canadian Labour Congress. "There are things that can be done to keep people working — low cost and no-cost things — that won't punish the people who can't afford it."

Proposed suggestions include offering seniors more flexible hours and work arrangements; allowing them to receive their pension alongside their wage; developing better skills-matching and retraining programs; and using education to counter stereotypes about older workers.

Original Article
Source: ottawa citizen
Author: Misty Harris

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