Retired and broke?

     Within the interval of a year, seniors (people aged 65+) experienced the fastest rise in poverty rate more than any other age group between 2007 and 2008 (Yalnizyan, 2011). In 2007, poverty among seniors was 4.9% and jumped to 5.8% in 2008 (Friesen, 2010). This leap of nearly 1% was caused by many external factors. The economic crisis started to unravel as investments hammered and job loss was at its highest (Yalnizyan, 2011). The $920-million it cost the public treasury in 2010 to support the pension splitting ideal is not being split evenly, which leaves us with the senior poverty statistic of 5.8% today (Yalnizyan, 2011).

     The elder poverty rate was at 36.9% in 1971, prompting the Canadian in government to introduce the Canada Pension Plan (CPP) and Guaranteed Income Supplement (GIS) (Friesen, 2010). Along with these income sources is the Old Age Security Program (OAS) which a majority of Canadian seniors receive the income of $450 a month (National Advisory Council on Aging, 2005). With two-thirds of seniors relying only on an income of the OAS and CPP receiving extra money to enhance their lifestyle is nearly impossible (National Advisory Council on Aging, 2005). The money shortage is not only a struggle for the elder; it is also a problem for their children. When a senior struggles with money issues they have trouble turning to their own kids, but once reality strikes and seniors start falling shorter on cash, who else are they supposed to turn to? Already overwhelmed by family and economic problems, the kids of poor seniors must also deal with their parents' struggles as they have to support them to keep them alive. Whether it's paying for medication, groceries or bills, children of poor elders are certainly affected heavily by the extra cost of helping out their parents. Depending on family struggle, underlying poverty issues associated with seniors could cause the domino effect on their children. Friesen (2010) says this is quite true for immigrant elders and families in speciality because when elders are sponsored into Canada and the whole family starts immigrating to Canada, they do not get the full CPP benefits.

     According to the National Advisory Council on Aging (2005), headlines were made in 2001 when Canadians learned that approximately 300,000 seniors eligible for government support did not receive the benefits. They state that people were living under such conditions that left them in poverty. For example, once the rent was paid many elders only had a remaining $34.65 per week to spend until the next month of income came. Being on this kind of budget is ridiculous as seniors are human beings who still need food, water, transportation and medication. In 2004, 50 000 eligible elders did not apply for OAS and 300 000 did not apply for GIS (National Advisory Council on Aging, 2005). So why don’t people apply for the benefits they’re entitled to? The National Advisory Council on Aging (2005) declares that people who do not apply for GIS and OAS are usually immigrants who are not aware of such benefits they could be getting, elders living in remote areas, seniors with mental or physical disabilities, or homeless.

     After learning about these statistics how do we put an end to senior’s poverty or at least diminish it? Yalnizyan's (2011) response is that by taking the public treasury’s $920-million initiative and target it to Canada’s 634,000 poorest seniors, they would each get $1,450 more a year. This would be enough extra cash a month to possibly end senior poverty. Instead, the government is putting more money into the pockets of the more well-off seniors (Yalnizyan, 2011). Forty percent of seniors live in households with incomes lower than $30 000 and they only receive 5.8% of the benefits of the new tax treatment of pension splitting; the poorest seniors, usually single or widowed women get nothing of this $920-million proposal (Yalnizyan, 2011). I agree with Yalnizyan‘s (2011) suggestion because living in a wealthy country such as Canada, senior poverty should not exist. Elders should not have to work in their condition to keep themselves alive in an acceptable lifestyle. Depending on their income, taxes could increase or decrease which affects their benefits they obtain, so getting a job could not even be worth the extra effort. It is up to Canadian government and citizens to take care of our elders so they do not die from issues that should not be present.

-Dora


References

Friesen, Joe. (2010, November 24). Number of seniors living in poverty soars nearly 25%. The Globe and Mail. Retrieved from http://www.deema.ca/financial/FA_10-11-25%20-%20G%20&%20M%20-%20Seniors%20living%20in%20poverty%20soars.pdf

National Advisory Council on Aging. (2005). Aging in poverty in Canada. Ottawa, ON: Minister of Public Works and Government Services Canada. Retrieved from http://dsp-psd.pwgsc.gc.ca/Collection/H88-5-3-2005E.pdf

Yalnizyan, Armine. (2011, April 2). How to wipe out seniors’ poverty, no extra charge. The Globe and Mail. Retrieved from http://www.theglobeandmail.com/report-on-business/economy/economy-lab/the-economists/how-to-wipe-out-seniors-poverty-no-extra-charge/article1967092/