Over the next decade, more and more baby boomers will be entering their retirement period, marking the peak at which their generation will stop working and start living out of their pension. Legislators are therefore closely watching how this will affect the Canada Pension Plan (or CPP) and the Old Age Security (or OAS). While the CPP has been found to be well- funded, the OAS is a hot topic for debate. It would therefore be prudent to go over its history to understand the present situation for most of Canada’s pensioners.

The OAS’ original form was passed in the 1920 in order to provide pension for less- fortunate retirees. This eventually turned into a slightly different act which paid out a fixed pension to all citizen retirees. After the 1950s, some minor changes were added which changed the retirement age from 70 to 65, and added a few more benefits for seniors.

Now the OAS pays up to $540 a month for retirees beginning at the age of 65. This is age- restricted so anyone younger than that will have to wait a few more years. It is also participatory, meaning those interested in the pension must apply and pay a monthly fee. Although mandated by the government, those without membership will not be eligible for any income whatsoever.

Because of all these restrictions, some baby boomers and even younger generations as well are arguing that the OAS should be changed. While some of their points are well deserved, the pension will stay as it is for now because of the sensitive nature of the fund itself.