TORONTO (December 10, 2024) – Too many low-income Torontonians are not accessing the Old Age Security (OAS) benefits they are entitled to.
Research by Wellesley Institute, in partnership with Open Policy Ontario, has found that more than 10,000 Toronto residents living in poverty are not receiving this important benefit that could help them to thrive. The research further shows that certain groups, including racialized individuals and those with limited proficiency in English or French, are the most likely to be missing out.
“Old Age Security plays an important role in reducing poverty among low-income older adults,” says study co-author John Stapleton of Open Policy Ontario. “Although there are those in Toronto who may not meet the eligibility requirements or are deferring collection to a later date, we are concerned a high proportion of them are not applying when they should be.
Only 83 per cent of older Torontonians were receiving OAS in 2020. Among visible minorities in Toronto, the uptake level was only 78 per cent. For those in Toronto with low English or French language skills, it was only 80 per cent. And among immigrants in Toronto who have arrived since 1980, it was only 76 per cent.
There is further reason to be concerned about this data, says Wellesley Institute researcher Christine Sheppard.
“There are more than one million people in Toronto over age 65 – one of the fastest growing populations in the city. Over the past two decades however, their rate of poverty has been increasing. The impact of unclaimed OAS benefits could grow.”
For OAS to be an effective poverty reduction tool, all low-income older adults should be applying at age 65 or as soon as they become eligible, she says.
“It’s time to increase awareness of OAS among all older adults and remove barriers to accessing it among hard-to-reach populations. There’s a significant gap in the Toronto area that needs to be closed in order to decrease poverty.”
About Old Age Security (OAS)
The OAS program provides a monthly pension to Canadian citizens or legal residents aged 65 or older who have lived in Canada for at least 10 years since the age of 18. A partial pension is earned at a rate of 1/40th of the full monthly amount for each year of residence in Canada, and the maximum pension is earned after 40 years. Social security agreements between Canada and more than 60 other countries also allow for periods spent living and working in those countries to be counted as residency in Canada. OAS payments can be deferred until age 70, with each month of deferral increasing the monthly payout by 0.6 per cent. There is a 15 per cent repayment required on OAS payments for individuals whose net income exceeds a certain threshold.
About the report
Unclaimed Benefits: Too many missing out on Old Age Security in Toronto uses 2021 survey and census data from Statistics Canada to examine OAS uptake among Toronto residents, and further breaks this data down by sociodemographic factors including income, immigration status, visible minority status and language proficiency.
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About Wellesley Institute
Wellesley Institute works in research and policy to improve health and health equity in the GTA through action on the social determinants of health. Visit wellesleyinstitute.com to learn more.
About Open Policy Ontario
Open Policy Ontario is a research-based social policy consultancy focused on understanding and addressing poverty issues in the province. Visit openpolicyontario.com to learn more.
For more information or to arrange interviews with the study authors:
Judy Noordermeer
judy.noordermeer@wellesleyinstitute.com
647-830-9024
or
Colleen MacDonald
colleen.macdonald@wellesleyinstitute.com
647-458-3708