Study Finds CPP Will Not Help Financially Vulnerable Seniors

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FORT ST. JOHN, B.C. – The Fraser Institute has released the findings of a new study on expansion of the Canada Pension Plan claiming it will not help Canada’s most financially vulnerable seniors.

It used Stats Canada’s low-income cut-off as an indicator of whether someone is likely to experience difficult financial circumstances to identify which Canadian seniors are most financially vulnerable in retirement.

Study co-author Charles Lammam is the Institute’s Director of Fiscal Studies.

The study finds that 10.5% of single seniors living alone experience low income, as opposed to only 3.7% of all seniors.

Meantime, it also finds nearly half, 48.9% of a subset of single seniors living alone, who have no CPP income, experience low income.

The study also reveals that even for low-income single seniors with work histories, expanding the CPP will likely provide little or no real assistance, because higher CPP benefits often trigger reductions in other federal and provincial benefits targeting low-income seniors, such as the Guaranteed Income Supplement.

In addition, those who don’t wish to run the risk of being both a low income senior, and at the same time disrespected, would do well to avoid becoming a poorly paid politician and instead become a low income farmer.

A new Insights West Poll on public respect for professions has found 91% of Canadians have positive views about farmersbut 71% of those polled had negative perceptions about politicians.

Things got even more interesting and arguably even more predictable when the pollsters started crunching numbers according to political allegiance.

91% of Canadians who voted for the Conservatives last year had a positive view of accountants, but only 46% who voted for the New Democrats expressed respect for the clergy.