Affiliation:
1. Keith Horner Consulting, Ottawa
Abstract
An aging population will raise the cost of Canada's Old Age Security/Guaranteed Income Supplement (OAS/GIS) programs. If the benefit levels under OAS and GIS were increased in line with wages to maintain their antipoverty effectiveness, the program cost would double by 2030 as a percentage of the gross domestic product. With this scenario as a base, we employ a life-cycle model to explore the effect of program design changes on the cost of benefits, taking into account the interaction between OAS/GIS benefits and private retirement saving. One finding is that, despite savings responses, raising—not lowering—the 50 percent benefit-reduction rate under the GIS would reduce program costs.
Publisher
University of Toronto Press Inc. (UTPress)
Subject
Public Administration,Sociology and Political Science
Reference16 articles.
1. The Role of Registered Retirement Savings Plans in a Life-Cycle Model
2. The Adequacy of Household Saving
3. Human Resources and Social Development Canada (2006).The CPP and OAS Stats Book 2006.Accessed 16 April 2007at www.sdc.gc.ca/en/isp/statistics/statmain.shtml
Cited by
1 articles.
订阅此论文施引文献
订阅此论文施引文献，注册后可以免费订阅5篇论文的施引文献，订阅后可以查看论文全部施引文献