The Fraser Institute says spending on taxpayer-funded federal income support programs for Canadians aged 65 and older are expected to reach $103.2 billion by 2030. That’s an increase of 70 per cent. The Institute says it’s a result of Canada’s aging population.

Steven Globerman, resident scholar at the Fraser Institute says, “As Canada’s population of seniors grows with each passing year, so too do the costs of these support programs.”

The two major taxpayer-funded federal income support programs for Canadians over the age of 65 are Old Age Security and the Guaranteed Income Supplement.
His study finds that over the 10-year period from 2020 to 2030, total expenditures on these programs are projected to increase by almost 70 per cent, plus an additional 136 per cent from 2030 to 2060.

And these projections were completed before the federal government announced a 10 per cent increase in benefits for OAS.

The OAS and GIS programs were already nearly 50 percent greater than the federal government’s transfer payments to the provinces for health care in 2019.

The absolute number of people aged 65 and older is expected to double between 2019 and 2060. In fact, 25 per cent of Canada’s population is projected to be 65 or older by the year 2060.

“The increased costs for senior income support risks crowding out government spending in other areas that are important to Canadians,” Globerman said. “The aging of the population has already begun, and policy-makers across Canada need to prepare for the drastic changes this will usher in, including escalating costs for income support programs.” said Globerman.