First a few points about OAS (I find a lot of misconceptions when talking to clients)
- You don't "pay into" or "contribute to OAS. The funding is provided by the government which of course comes from taxes and such, but what I mean to say is there is no direct funding like CPP.
-Second OAS is income tested. The clawback begins at $67,667 and for every $100 in income over that the OAS benefit is reduced by $15. After you earn an income of about $108k (going from memory here) you get zero OAS.
- There are also stipulations where you can earn partial pensions depending on how long you've been in Canada and you can also receive OAS even if you live abroad.
I think OAS should be stopped entirely. I know thats a harsh stance and would be less than appreciated by people older than me and many of my clients. The reality is that the baby-boomers are poised to retire and leave the next generation with huge debts. Its a generation that doesn't want taxes increased, doesn't want services cut and doesn't want to work any longer than is absolutely necessary. (Obviously I'm generalizing here and painting a generation with a broad brush). Its hard for someone my age not to think "so what if you have to work an extra few years? Work until the debts are cleared up and you can retire after that."
I know....its not going to be popular with some, but thats my opinion.
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