Federal taxpayers spend more than $14 billion annually on Old Age Security benefits for seniors with incomes exceeding $60,000, prompting renewed calls to tighten eligibility rules for higher-income retirees.Figures tabled in the House of Commons show Ottawa paid $14.5 billion in Old Age Security (OAS) benefits in 2023 to 1.73 million seniors whose incomes exceeded $60,000.The data were released in response to a parliamentary question from Conservative MP Terry Dowdall, who asked how many OAS recipients reported gross incomes above that threshold.Among those receiving benefits were 328,400 seniors with annual incomes exceeding $100,000.The government noted the figures do not account for the OAS Recovery Tax, which reduces benefits by 15% on income above $86,912, based on 2023 thresholds.“As a result, some beneficiaries may have had some or all of their pension recovered,” the government stated in its response.The spending figures come as a federally funded advocacy group urges the Carney government to scale back benefits for wealthier retirees.Generation Squeeze, a University of British Columbia-based organization, recommended that Ottawa reduce Old Age Security benefits and tax credits for seniors with household incomes above $100,000.In a submission to the House of Commons finance committee, the group argued that current retirement benefits are overly generous to financially secure seniors.“Old Age Security is unusual in the generosity it shows to financially secure families including by comparison with other income support programs,” the report stated..The organization pointed to Prime Minister Mark Carney’s pledge to reduce government costs, arguing retirement programs created decades ago should be updated to reflect current economic realities.“It’s time to change Old Age Security thresholds,” the report said. “It’s appropriate to ask retirees with six-figure incomes to accept fewer taxpayer dollars.”Generation Squeeze also highlighted disparities between benefits available to seniors and those available to younger families.According to the report, retired couples with annual incomes of $180,000 can still receive up to $18,000 in taxpayer-funded Old Age Security payments, while Canada Child Benefit payments begin to be clawed back at household incomes of approximately $79,000.The group has previously attracted controversy for advocating a tax on home equity. It received $450,000 in Canada Mortgage and Housing Corporation funding before publishing a 2022 report proposing a national home equity tax that it estimated could generate $5.8 billion annually.The proposal was ultimately rejected by the federal government.Statistics Canada data show seniors now account for nearly one-fifth of Canada's population, representing approximately 8.4 million people. Federal data also indicate that 59% of seniors own their homes and experience lower poverty rates than younger families with children.The debate over Old Age Security comes as Ottawa faces mounting fiscal pressures and growing demands on social programs from an aging population.
