Unattached Older Adults, Falling through the Cracks

Often when the topic of poverty is presented, the key focus is on family and/or child poverty. While poverty among any group is an issue that needs to be examined, poverty among older adults is an issue that is often overlooked. Perhaps the reason for the lack of discussion in this area is due to the fact that Canada’s low-income older adult population has been decreasing over the years, and currently approximately only 7% of the older adult population is living in poverty (National Advisory Council on Aging, 2005, p. 9). Society’s older adult population is the foundation of Canada; these individuals worked hard, both inside and outside the home, and have helped form families, communities, and shaped the country as a whole; although 7% is a low number, I would argue that no older adults should be living in poverty.

Poverty among older adults affects certain groups more than others; this is especially true for unattached older adults, 15.5% of whom live in poverty (National Seniors Council, 2011). Unattached women are at increased risk because they typically spent more time out of the paid labour market and/or they made less money than men while employed, and they live longer than their male counterparts (The Special Senate Committee on Aging, 2009, p.107). Meanwhile, only 1.4% of older adult couples live in poverty (National Seniors Council, 2011); older adult couples are typically less affected by poverty because they receive greater assistance and are able to depend on their spouse’s RRSP’s, pension, and Old Age Security payments.

Canada’s Guaranteed Income Supplement (GIS), is intended for older adults whose annual income is less than $2,000. The GIS is given to those who typically have no other source of revenue (i.e. pension, RRSP’s) other than Old Age Security; the key recipients of this financial aid then are the unattached older adults. The article TFSA millionaires could get GIS - Actuary highlights savings-plan flaw brings to light the issue of how older adults who invest in tax free savings accounts (TFSA) could still receive GIS payments; this issue poses a policy problem. If the GIS is intended for low-income individuals, then why is it that the wealthy individuals who are able to afford to place money into TFSA’s before or during retirement, would still be eligible for the guaranteed income supplement? Furthermore, a survey conducted by the BMO Financial Group determined that the TSFA is in fact most popular among the 65+ older adult population (2009).

This new policy then helps wealthier older adults and negatively impacts low-income older adults; it allows wealthier older adults to save and collect more, while leaving those who need the GIS money in order to survive, in the cold. The govenrment is loosing money on TSFA’s, because they loose the potential tax revenue this now tax exempt money could have produced. This money that is now lost could have potentially been spent on erradicating older adult poverty completely, rather than putting the money towards older adults who do not actually require it. The excuse that erradicating older adult poverty would cost too much, is a lie. The money is available, it would not impact existing services provided to this population, or pull funding from other crutial areas; the government needs to realize that this group of individuals require the money more than the individuals this policy supports. This policy therefore reflects both the impacts of classism and ageism on low-income older adults; it ignores the needs of those for whom the GIS is intended to help.

I think the enactment of this policy and its effects on the low-income older adults was a blatent disregard by the government; it neglects to take low-income older adults into account, only supporting their wealthier counterparts. It is important to include all types of older adults in the consultation process when it comes to creating policies that may affect them, irregardless of their class or age. This policy only perpetuates the inequalities among attached/unattached and wealthy/low-income older adults. A better effort should be given to ensure that better resources are allocated to these low-income individuals who have worked hard their entire lives, and deserve to live the rest of their years without worrying about their finances.

Kirsten

References

Beeby, D. (2011, October 25). TFSA millionaires could get GIS - Actuary highlights savings-plan flaw. The Winnipeg Free Press, p. B8.

BMO Financial Group. (2009, March 25). TFSA is a hit with seniors, according to BMO survey. Retrieved from BMO Financial Group: http://www2.bmo.com/news/article/0,1083,contentCode-8520_divId-4_langId-1_navCode-112,00.html

National Advisory Council on Aging. (2005). Seniors on the margins: Aging in poverty in Canada. Ottawa.

National Seniors Council. (2011, July 11). Report of the national seniors council on low income among seniors. Retrieved from National Seniors Council: http://www.seniorscouncil.gc.ca/eng/research_publications/low_income/2009/hs1_9/page05.shtml 

The Special Senate Committee on Aging. (2009). Canada's aging population: Seizing the opportunity. Ottawa.