Government must balance senior needs with burden on taxpayers: Schulte

In 2030, 1 in 4 Canadians will be a senior, increasing costs especially who those who are in need

Yorkregion.com
Nov. 28, 2019
Dina Al-Shibeeb

Ahead of receiving the official mandate for her new ministerial post, King-Vaughan MP Deb Schulte has to fine tune the delicate “balance” between the rising “financial security” needs of seniors and the burden on taxpayers.

Schulte, who was sworn in as minister of seniors Nov. 20, lives in Vaughan and has previously served as a York Regional Councillor.

Before delving into Schulte's interview, the federal government in 2017-2018 has paid out over $50 billion for senior citizens and residents eligible for Old Age Security (OAS) and Guaranteed Income Supplement and Allowance (GIS).

The money paid to seniors accounted for more than a quarter of the total federal expense, topping transfers for employment insurance and children benefits.

However, seniors is a rising demographics. In 2012, almost one in seven Canadians was a senior and by 2030, that number will jump to nearly one in four.

So far, low-income seniors are already asking for more OAS and Canada Pension Plan.

“Just upping the CPP that means you're giving more to everyone whether they need it or not,” Schulte said. “Our focus has always been on those who are more vulnerable,” she added, citing an example of how there are “companies that are going through bankruptcy.”

“Obviously, everyone would like more money, but that comes at a cost to the taxpayers. So we have to balance that.”

When asked about the percentage of seniors who are on the low-income spectrum, Schulte said she hasn't dug into these numbers yet.

“I think that will also come with the priorities because once we get the details, it will become clearer.”

However, there are still a myriad of impending issues to tackle for seniors.

While “financial security is a really big one,” she said, adding how “affordable housing and all the social supports that are required to stay healthy and stay connected and active” are important.

There is also “community building” and “how we design our cities that are not particularly friendly to seniors.”

Schulte, a Princeton graduate of mechanical engineering, emphasized that seniors also do suffer from the “overarching issue of ageism,” and how they are seen as the ultimate target by fraudsters.

'Prime minister listening'

On June 21, during the Senior Summit in Vaughan, Schulte told the 800 older-adults attendees that the “prime minister is listening.”

At the summit, the big picture was clearer for issues pertaining to seniors: The richer ones wanted less taxes and were preoccupied with transferring their assets to their children while there were the poorer ones who “can’t buy bread unless it’s half price.”

With no NDP officials attending at the time, both Liberal and Conservative MPs were listening as their parties were in the works to unroll their political platforms on seniors.

Unlike the Conservative party, the Liberals lowered the retirement age back to 65 and increased OAS and the Guaranteed Income Supplement.

Most importantly, the Liberals promised if they are re-elected, they will lower taxes for the middle class and make life more affordable for those who need a break and not just for the wealthiest one per cent.

'I am OK with that'

For Gerry O’Connor, chair for the Seniors Association of Vaughan Initiative, who was behind the summit, said even if Schulte’s party “leans toward the more lower-income spectrum of seniors,” “I am OK with that” as they are the ones who “need help.”

“That’s our Canadian value system,” the 75-year-old said. “If the government won’t look after them, nobody will.”

Seniors, who are on the lower-income spectrum want to see an increase in their CPP and OAS.

For O’Connor, it’s seniors who don’t have a “corporate pension plan,” and those who are “reliant” on CPP and OAS. But then again, there is no exact percentage for these seniors.

“The cost of living for them is escalating,” he added.

However, he warns that the costs related to seniors is on the rise as this demographic is growing. In 2036, seniors could represent between 23 per cent and 25 per cent of the total population.

“If they go too far, over the line, then they lose the next elections, that’s the way the system operates.”

After all, there is also the millennials, who are now the largest generation of Canadians, at 27 per cent of the total population. They earn more than their parents did but owe a lot.

“Look at the millennials now, some have reasonably good salaries but they can’t buy homes in Toronto,” he said, adding how the average home in Toronto is about one million dollars.

That creates the upcoming dilemma that these millennials can’t be taxed further more as they themselves need more money.