Recall that during the 2021 election campaign, the government promised a $500 increase for people living alone, and $750 for couples. That is the absolute minimum.
I’d like to come back to indexing the Old Age Security pension, which you mentioned. The problem is that indexation is based on the Consumer Price Index, whereas average wage growth is a percentage point higher. Generally speaking, this means federal benefits will play a less important role in the income replacement rate for retirements in the future. That’s where the problem lies.
As an example, the Canada Pension Plan and the Quebec Pension Plan change based on wages, because they depend on contributions. Maximum pensionable earnings change based on average wage growth. To put it simply, the average wage replacement rate by Old Age Security will be much lower in 2065 than it is currently.
Our ask is not complicated. We ask that indexation of Old Age Security also take wage growth into account. At least people wouldn’t become impoverished. That’s the foundation of retirement in Canada.