Seniors do sometimes get a raw deal in today’s world, but being left out of those $250 payments is not a great example.Georgijevic/iStockPhoto / Getty Images
Some seniors are mad that only working people will receive the $250 payments the federal Liberals plan to issue in April as a way of helping with the high cost of living.
This reaction sounds familiar. A couple of years ago, there was some opposition to a government move to increase Old Age Security payouts by 10 per cent for seniors aged 75 and up.
We can build arguments why people of all backgrounds and ages deserve special support from government to cope with increases over the past few years in the cost of groceries, rent, mortgages and more. In fact, the federal NDP wants those $250 payments to also include retirees, students and people with disabilities. The Liberals need support from the NDP or another party to pass legislation.
The thing about seniors as a broad demographic is that they’re doing well, financially speaking. I dug into the “poor seniors” narrative in a column that noted this group’s low poverty rate, high net worth and well-stuffed tax-free savings accounts. These realities helped fuel questioning of the move to increase OAS payments. Shouldn’t the government have found a way to help families facing monster grocery bills and soaring mortgage payments?
Some seniors do live in poverty, and that’s a disgrace. The Guaranteed Income Supplement for low-income seniors should be more generous and less vulnerable to clawbacks when a recipient has even a modest level of income. And, more needs to be done to address tax fairness for single seniors, most commonly women.
We should also acknowledge that seniors are too often ignored or disrespected. This was perhaps the government’s failing in how it disclosed that those tax-free $250 payments will go to people who worked in 2023 and had net income up to $150,000. A defter approach would have acknowledged seniors with mentions of the onetime OAS hike and the latest annual cost-of-living adjustments for both OAS and the Canada Pension Plan. The government could have simply said, “At this time, we’re focusing especially on working people.” Another thought would be to send $250 to seniors receiving GIS.
The disrespecting of seniors is particularly noticeable in the financial world, which can be impenetrable to people with impaired hearing, vision or mobility. Online banking doesn’t work when your hands shake, so you try calling for help. If the help line number is even published, there’s often a lengthy wait to speak to someone. Or, questions are handled through an online chat function powered with AI that can only handle the most basic matters.
Seniors do sometimes get a raw deal in today’s world, but being left out of those $250 payments is not a great example. The real question to be asked about those payments is whether they’re the best use of revenue for a government running a sizable deficit.
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Rob’s personal finance reading list
‘No, a child isn’t a consumer product,” this article on the cost of having kids says in conclusion. But more and more, would-be parents are considering the financial load of starting a family. Now, for a U.S. perspective on the financial pressures faced by young adults looking at raising kids.
Useful suggestions on how to be a successful long-term index investor. I’m a long-time believer in the benefits of low-cost index investing through exchange-traded funds. That’s why I annually put together an ETF Buyer’s Guide for Globe and Mail subscribers.
All about how some U.S. online retailers are offering customers refunds without having to ship goods back. I know this is happening with Canadian orders because my wife and I have benefited from this sort of policy at least once or twice.
A financially responsible wedding is a great start to married life. To help make smart spending decisions, check out this list of expenses that may deliver real value. Subjective stuff, for sure. One person’s necessity is another’s frill.
Podcast fans
Subscribe to Stress Test on Apple podcasts or Spotify.
Ask Rob
Q: Your statement that retailers would prefer cash payment is understandable, given comparable costs to the retailer. However, the public has been trained/told that paying a retailer with a debit card is not a secure transaction for the customer.
A: Here’s the Canadian Bankers Association on debit card fraud: “ … banks understand that being the victim of debit card fraud can be upsetting for a customer: after all, their money is missing. If this does happen, banks will immediately look into the matter and get the money back to the customer as quickly as possible, which can usually happen within a few days or even before the customer knows it’s gone. When using your debit card, you are protected by the Canadian Code of Practice for Consumer Debit Card Services and Interac policies which guarantee that, if you are a victim of debit card fraud, you will get your money back from your financial institution.”
Do you have a question for me? Send it my way. Sorry I can’t answer every one personally. Questions and answers are edited for length and clarity.
Tools and guides
An interactive explanation of how GIC laddering works.
In the social sphere
Social Media: A Reddit discussion of which credit cards can be used to pay utility bills and tuition costs.
Watch: All about unbudgeting, which is described as a way to build a little fun into your life when you’re on a tight budget.
Money-Free Zone: One of my favourite current day masters of classic soul is Curtis Harding, and one of his best songs is the pandemic-era Hopeful. The snakey guitar and harmonies elevate this song – also, the 70s-era car in the video. I think it’s a Chevy Nova.
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