Mr. Speaker, I am thankful for the opportunity to talk about an issue that matters to Canadians in every region of our country, which is how we can better support seniors and ensure they can live and age with dignity, security and independence.
Seniors have helped build the Canada that we know today. They have raised families, built businesses, contributed to their communities, volunteered their time and strengthened our economy through decades of hard work. For example, in my riding of Honoré-Mercier, Italian Canadians helped build Rivière des Prairies decades ago, and with their hard work, built a strong community.
While I am here, I would also like to wish Italian seniors in my riding a happy Italian Heritage Month.
Seniors deserve a retirement that is secure, dignified and supported by strong public programs. Over the past several years, the federal government has taken steps to strengthen Canada's retirement income system and improve the financial security of older Canadians. We increased the old age security pension by 10% for seniors aged 75 and over, responding to data that showed that the older people get, the more expenses they have.
We have also strengthened the Canada pension plan, helping future retirees receive higher pension benefits. In fact, in the recent spring economic update, our government signalled our plans to reduce Canada pension plan contributions to 9.5%.
Additionally, recognizing the rising cost of living, we provided targeted support to Canadians. Measures such as pausing the federal fuel excise tax, cutting income tax for middle-class Canadians and investing in housing, infrastructure and the economy are helping Canadians across the country no matter their age.
It is important to acknowledge the intent behind Bill C-261. All members of the House share the goal of improving the well-being of seniors. For example, I think of my colleague from Winnipeg North, who is probably one of the strongest advocates for seniors and inspires us all here today. We recognize that many seniors face financial pressures and that income security remains a critical issue. However, it is also important to ensure a balanced and sustainable approach to the Canadian pension system so that it continues to benefit generations to come.
When our government increased old age security by 10% for seniors aged 75 and older, that decision was informed by evidence showing that older seniors generally face greater financial vulnerability. As Canadians age, they are more likely to experience declining health, increasing health care-related expenses and reduced opportunities to supplement their income through employment. They are also more likely to outlive their savings and other retirement resources. This is a sound decision supported by data.
With respect to the proposal to increase the guaranteed income supplement earnings exemption, we recognize the value of helping seniors who choose to remain in the workforce. Many older Canadians continue to work part-time, whether to supplement their income, remain active or just maintain social connections. That is why in 2019, the federal government increased the GIS work exemption to $5,000, allowing seniors to keep receiving their full pensions without being penalized for taking up some time to supplement their income.
Canada's population is aging. The number of seniors is growing rapidly, including in my own riding, and expenditures on the retirement income program continue to increase. This reality requires thoughtful policy decisions that balance the importance of our public pension system with the current workforce, which supports it and expects it to be there for them when they retire.
Our government knows that supporting seniors and investing in younger Canadians are not competing priorities. We can and must do both. That is why we have supported measures such as strengthening and protecting retirement benefits for seniors while also investing in housing, skills training, education and affordability measures that help younger Canadians build secure futures and grow the economy.
Every member of the House wants seniors to live with dignity and financial security. We all share a commitment to ensuring that older Canadians receive the support they need. For the generations that built this country, that commitment remains unwavering.