Canada's recent budget, presented by Finance Minister François-Philippe Champagne, includes numerous initiatives aimed at national development. However, one significant change that was notably absent is any reform to the Old Age Security (OAS) program. Prime Minister Mark Carney's administration appears hesitant to make adjustments to this program, despite ongoing discussions about its sustainability.

OAS is a government program that provides financial support to seniors aged 65 and older who have lived in Canada. Currently, the maximum annual payout is approximately $8,900, which increases to about $9,800 for those aged 75 and older. Payments are reduced for individuals with incomes exceeding $91,000. While OAS is not a substantial income source, its costs are significant, especially as the senior population grows.

A 2020 report projected that OAS expenditures would rise from $46 billion in 2020 to $94 billion by 2035, and further to $195 billion by 2060. Critics argue that these figures indicate a need for reform. Paul Kershaw, a professor at the University of British Columbia, suggests that the clawback threshold should be lowered. He noted, "OAS costs $42 billion more than a decade ago and adds more to red ink than child care, than PharmaCare, than dental care, or defence."

Despite the rising costs, OAS is not a program that disproportionately benefits the wealthy. High-income individuals, such as Edward Rogers and Mark Carney, do not receive OAS payments due to their income levels and work history outside Canada. The program is designed to support individuals, and while it is true that a couple earning up to $181,000 can still receive maximum benefits, this scenario is misleading. For a couple to qualify for full benefits, both must have incomes just below the clawback threshold, which is a rare situation.

The complexities of defining a couple also raise questions about the fairness of the program. Current regulations do not clarify whether couples must be married or if long-term cohabitants qualify. As discussions about OAS continue, the government faces the challenge of balancing support for seniors with the need for fiscal responsibility in a changing economic landscape.