Harper is in full retreat on his promise to raise the age for Old Age Security from 65 to 67.
In that respect, it reminds one of Mulroney's retreat on attempting to de-index this self same pension in 1985.
Another example of government not being run like a business.
A Radio Commentator said today that the real issue here was not the saving of money, but rather, it was all about when should we retire. Not surprisingly, given that the radio host was well into his 70s, he believed people should work as long as possible and most certainly should not be retiring in their 50s or early to mid 60s.
I do not agree. Rather I think retirement is a personal decision and if you like what you do, and are able to do what you do, then work to 100 if you want. But for the vast majority of us, having worked 35+ years, I believe we have fully earned retirement. Life is too short to continue work, just for the sake of working and for continuing to pay into the government coffers.
I also disagree with him stating that the real issue here revolves around when to retire. It is part of the issue facing western societies - but only part.
Many of you will no doubt have heard the python and the pig analogy whereby the python is Sate Spending and the pig is the mass of us Boomers heading down to our eventual demise.
We all have seen the stats - Boomers will triple the ranks of Seniors, before the end of their time, while less and less workers will be out there working to provide for them.
Even while we worked in great numbers and paid high taxes, ui, cpp etc., States still managed to rack up astounding debt and deficits. These liabilities are so high that our children and grandchildren will be left after we're dead, paying our bills.
The overriding issue then is Government Expenditure - it cannot be sustained at current levels. But more to the point, it cannot rise in unison with the spectacular rise in the number of 65+ Boomers. Health care currently represents nearly half of government expenditure and is increasing at the rate of 6% a year. And don't forget a significant portion of that 50% is borrowed. And just think how much of an increase will be needed by the aging boomers as their health deteriorates over time. If left unchecked, governments will be paying everything and more they can get their hands on, just to pay for our health care.
And then you have the pensions - cpp, oas, gains, disability etc - they too will skyrocket.
Now back to Harper's backtrack.
So if 67 is too high - what is the correct number; 65, 63, 59?
Again I believe if a person has worked 35+ years, he or she has done their bit and are entitled to retirement. If they can afford to retire younger or if they wish to work well beyond that timeframe - more power to them.
I have been retired now for several years after having worked over 35 years and I tell people that retirement is the best job I ever had.
So if we are to preserve a well earned retirement, we'll have to consider all government expenditure, as a whole, and determine what we can live without. This, in the end, will result in severe and deep cuts. But without them, the roof will indeed fall in on all our respective heads. One need look no further than what is currently happening in Europe and bear in mind that their Boomers are the same age as ours so things will likely only get worse for them too. Do we have the stomach to do what is needed? Not likely.
And in this respect, the antics of the NDP and Liberals this week are simply deplorable. I am not surprised by the NDP stance since their thinking is so far out and off putting, but I had hoped better for the Liberals. This Party is claiming renewal - they will do things differently - they will be responsible and so on - but in the end, it is the same old thing. Rae and Co. know full well that the status quo in government spending is not sustainable - so what do they do - they scare the hell out of our seniors the first time the Government attempts to start to get our finances in order. (i.e. Harper made it quite clear that current Seniors and near Seniors would not be affected by the age amendment).
This was totally irresponsible and does not bode well for future attempts by any Government to do what needs to be done.
As I see it...
'K.D. Bell" p.s. that's it for a while, I am working on a book about investing - well sort of a book on investing, and that among many other things is taking up much of my time of late. KDB
