Department in charge of Old Age Security doesn’t know if payments are enough, auditor finds

Canada’s auditor general recently released a report highlighting concerns about the federal department responsible for delivering Old Age Security (OAS) and other programs for seniors. The report revealed that Employment and Social Development Canada lacks a comprehensive understanding of the needs of Canada’s elderly population and has not been effectively analyzing data to determine if current programs are meeting those needs.

Auditor General Karen Hogan emphasized the importance of strengthening analysis as the senior population in Canada is projected to double by 2061. With benefits for seniors, including OAS and the Guaranteed Income Supplement, being the largest and fastest-growing part of the federal budget, it is crucial to ensure that these programs are providing adequate support.

The Old Age Security pension, available to Canadians aged 65 and older, is a key component of the support system for seniors. Unlike the Canadian Pension Plan, OAS is not based on employment history and is accessible to all qualifying individuals. However, concerns raised by experts like Paul Kershaw from the University of British Columbia suggest that the program may need to be reevaluated to better address the needs of seniors in different financial situations.

Minister of Labour and Seniors Steven MacKinnon responded to the report by committing to strengthen analysis of the OAS program to ensure it aligns with the broader retirement income system in Canada. He acknowledged that previous analysis had influenced positive changes to programs like the Guaranteed Income Supplement, demonstrating the impact of data-driven decision-making.

While the Bloc Québécois has advocated for increasing OAS payments, Kershaw believes that a more nuanced approach is necessary. He suggests that reallocating funds could help address poverty among the half a million Canadian seniors living in poverty without increasing overall spending. By analyzing data more effectively, the government could identify opportunities to improve the distribution of benefits and achieve broader social objectives.

In conclusion, the auditor general’s report underscores the importance of data analysis in shaping policies and programs for seniors in Canada. By leveraging insights from analysis, Employment and Social Development Canada can ensure that support programs evolve to meet the changing needs of the growing senior population.