Mr. Speaker, the motion tabled by the hon. member for Pierrefonds—Dollard suggests that the government is turning its back on Canadian seniors. This is absolutely false.
This government is doing exactly the opposite. We are standing up for Canadian seniors. This government remains committed to ensuring the retirement security of all Canadians. Indeed, let me assure the member that our government will ensure that seniors maintain all the benefits they currently receive.
Achieving this goal, however, will not happen through wishful thinking. Our aging population will have profound implications on all aspects of Canadian life, including our retirement income system. That is why this government is determined to ensure the long-term strength of our economy. Only in this way can we protect the well-being of both current and future generations.
For the benefit of the House, I would like to elaborate on how the government is responding to the challenge of a demographic shift. In particular, I would like to set Canada's challenges into an international context. As members know, there are three pillars to Canada's retirement income system. There are the old age security program, the Canada pension plan and, finally, personal savings, which include employer pension plans.
There are no concerns with the viability of the Canada pension plan. In the 1990s, in light of our aging population, the government made major changes to ensure the program's financial sustainability. As a result, the CPP is on a secure and sustainable path.
There are, however, major concerns with the affordability of the old age security program. Just as we once refined the Canada pension plan to protect future generation, the time has come to examine the OAS. To do anything less would betray the hopes and dreams of Canadians for a secure and dignified retirement. The stakes are high and the government will not gamble away the economic security of older Canadians by failing to act.
Let me reflect first on why reviewing measures to protect OAS in the long term are so necessary. Our population is aging. Over the next 20 years the number of Canadians over the age of 65 will jump from 4.7 million to 9.3 million people. That is a staggering increase in a relatively short period of time, and it comes with a high price tag. The annual cost of the OAS program is expected to triple between 2010 and 2030, from $36 billion to $108 billion.
At the same time, as our senior population is rising, our working population is falling. This is the crux of the issue. Unlike the Canada pension plan, the OAS is financed primarily through taxes on working people. By 2030, the number of taxpayers for every senior will have dropped in half, from four to two. Fewer people working means less revenues and higher costs.
This is not a recipe for sustainability. Unless we act decisively and responsibly, the old age security program will impose an increasing burden to future generations, which in turn challenges the ability of the government to continue delivering its important benefits to our seniors. That is why our government is determined to take balanced and fair action now to protect the well-being of current and future seniors. This government will take responsible actions in recognition of the changing demographics so we can have sustainable programs to support all Canadians in the future.
I stress the word “fair”. Any changes to the OAS program would not affect current retirees or those close to retirement. They would also give others sufficient time to adjust and plan for their retirement. Let me be absolutely clear. People receiving OAS and GIS right now will not lose one cent.
Canada is not the only country with an aging population. It would be useful to examine how other industrialized nations are responding to economic stresses on their retirement income systems and what we can learn from them.
Take the case of the United Kingdom. In 2011 the U.K. proposed to accelerate changes to pension reforms that were approved a few years ago, as events around the world made it clear that governments needed to make responsible decisions to ensure social programs remain sustainable. For Canada, this reaffirms our belief in a balanced, fair and responsible action. Any changes to our old age security program will be well planned and gradual. We will work hard to get it right the first time.
I will use Australia as an example. You may know, Mr. Speaker, a review panel recommended increasing the age of eligibility for the old age pension from 65 to 67. Naturally the proposals provoked much debate. What is interesting, however, is that seniors groups actually supported an increase in the retirement age. They understood, given the country's aging population, that changes were inevitable. Canada can learn a lot from the Australian experience. The government is convinced that Canadians will understand what is at stake and therefore support reforms to our old age security program. No doubt today's debate will be the first of many. Canadians appreciate our country's fiscal realities, unlike the opposition parties that continue their campaign of fear, with half truths and disingenuous comments.
Japan's experience also shows why public awareness is so important. Back in the 1990s, a major study reached a significant conclusion. Many Japanese in their 50s believed that public pensions would not be around for their retirement. Given this clear understanding of what was at stake, there were major concerns after Japan raised the age requirement for a basic public pension.
Closer to home, the United States passed pension reforms back in 1983 and is considering new increases in the retirement age. A recent proposal is being supported by reform advocates and actuaries for one simple reason. Since Americans are living longer, they need to work longer. This, too, is a lesson that Canada should take to heart.
The opposition falsely accuses the government of fighting the deficit on the backs of our country's seniors. Unlike the Liberal Party before us, we will not cut transfers to individuals or provinces to balance our budget. This is not about deficit reduction. This is about securing the pensions of Canadians for today and tomorrow. We cannot put our heads in the sand and ignore the demographic realities facing us. We must meet the challenge square on and protect our old age security program as other countries around the world have protected theirs.
As we move forward, our government will work to protect the financial security of all Canadians, while ensuring that the social programs remain sustainable for the long term. That is why I will not support this motion and I recommend that all members of the House do likewise.