ECON 241 Lecture Notes - Lecture 18: Old Age Security
27 Sep 2017
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Public benefits to elderly (60+) as % of gdp. Insight: aging population = more gdp spent on taking care of them, disproportionately so! Where pay pensions are related to years of service + final salaries. Closed to new members bc declining stock mrk + increase pension liabilities. Alternative: less generous funded defined contribution scheme. Shift alone decreases private pension savings in uk by 1% of gdp. Less private pension savings unless individual use alternative options (rrsp) If private swing down, greater pressure on public system. Provide min guaranteed standard of living to senior (65+) Total spending 1990: . 9 bil 2030: bil (not net of taxes; net of taxes bil) Paid monthly to 65+ who lived in canada at least 10 yrs (min pension of full pension) Lived in canada for 40 years after age 18 = full oas pension. Doesn"t change if nsw, part time still same.
