Like most Canadians, I'm a bit wary about all statements coming out of Ottawa, but after reading a number of anti-immigration letters and articles lately I started thinking about the true cost of retiring Baby Boomers to the federal government.
In basic terms, many boomers are some of the highest taxed Canadians until they retire and/or become eligible for Old Age Security (OAS) and Canadian Pension Plan benefits (CPP). At that point, the ledger reverses. Gone are most of the taxes contributed only to be replaced by $1,000-plus per month in subsidies.
In normal times, this economic anomaly would be worrisome but the retirement numbers are anything but normal and will remain so for decades to come. I picked these disturbing gems from a recent newspaper article.
In the latest “outlook for expenses" we find this: “The update shows that spending on Old Age Security (OAS) will increase by $115-billion between now and 2028." Also, "The economic update reports $150-billion in new spending on retirees between now and 2028, with many billions more to follow…Indeed, new spending on OAS is larger than all new spending on child care, the Canada Child Benefit, and Employment Insurance combined."
(People)—perhaps in a new labour force—need to start paying taxes immediately in order to assist our country to manage these spiralling, out-of-control costs.
It seems like increasing immigration may be a necessity rather than a choice after all.
Ian Skinner, Keremeos