Thank you very much, Mr. Chair.
My name is Susan Eng. I'm vice-president of CARP. With me is Michael Nicin, who is our policy development officer.
CARP, as you know, is a national, non-profit, non-partisan organization with 300,000-plus members across the country in 40 chapters. We focus on the quality of life for all Canadians as we age.
I've been before this committee before asking that the finance ministers across the country take some action on pension reform. Indeed, after June's meeting this year, led by the finance minister and Mr. Menzies as well, there have been some good announcements about looking at pension reform for the future. However, that leaves behind today's retirees and those facing financial insecurity as they retire.
CARP is calling for better support for older Canadians in the next federal budget, including increased OAS, GIS, specific support for older women, and, of course, caregiver support. The financial insecurity brought on by the economic downturn is particularly challenging for today's retirees, who have limited opportunity to recover.
Poverty among Canadians aged 65-plus is estimated by the OECD, prior to the recent downturn, to be about 4.4% or 200,000 people. However, 7% of Canadians over 65, or about 300,000 people in 2008, were living under a low-income cutoff, a commonly used Canadian measure of poverty. Even though those numbers are significant and represent an improvement over the past, we have to look at the fact that 1.5 million Canadians over 65 receive some form of GIS, which indicates clearly that they face some financial insecurity, and many of these people are one medical crisis away from poverty.
Increasing bankruptcy rates among Canadians 55-plus, those thinking about retirement, are another measure of financial insecurity facing older Canadians. A federal report from 2006 noted that for the five years from 2001 to 2006, the number of Canadians over age 55 who had declared bankruptcy had grown steadily. In 2006, over 7,000 people in this category filed for bankruptcy. By 2009, that had doubled to 15,700 people.
Women are particularly hard hit with historically lower incomes and child caring responsibilities, and now are increasingly bearing the main responsibility for elder care. According to the 2006 census, 18% of women over 65 who lived alone lived in poverty. Over 60% of women who retire without occupational pension plans, because those are the types of jobs they tend to work in, depend entirely on their small savings and the supplementary income programs you provide. The working patterns of women may have changed over the last decades, but the caregiving expectations have not. From child rearing to caring for aging relatives, women still bear the primary responsibility.
Caregiving is a major part of our focus. We've talked about financial security as part of the fourth pillar; that is, the informal sector, including caregiving support. According to a 2008 Statistics Canada report, about 2.7 million Canadians, aged 45 or over, or approximately one-fifth of the population in that demographic, provide some form of unpaid care for people 65 years of age or older who had long-term care issues. Estimates of that unpaid labour contributed by family caregivers varied, but one estimate that was presented to the Senate report on aging was $25 billion per year. Obviously, any amount that is announced or provided has to be matched against that.
We've made our recommendations in the presentation we have given you. They include increasing substantially the income supports, namely OAS and GIS, and placing a moratorium on mandated RRIF withdrawals. We were grateful for the 25% reduction in 2008, but we think there should be a permanent reduction.
There are a number of specific issues that apply to women. With respect to the caregiver strategy, we are pleased to note that the Liberal Party is announcing today support for caregivers in the form of a tax credit and EI support. We think that's a huge first step. As the Liberals are not yet in government, I invite the government to adopt that as a very good idea to implement immediately in the next federal budget.
Thank you very much.