Canada’s retirement income system relies on programs like OAS and GIS to support older adults across the country.
Canada’s population is projected to age steadily, with the share of older Canadians (65+) increasing from 19.5 per cent in 2025 to between 22.6 per cent and 32.5 per cent by 2075, according to Statistics Canada. Retirement income will continue to be at the forefront of discussions for years to come, and the Old Age Security (OAS) and Guaranteed Income Supplement (GIS) systems will play an instrumental role as a safety net and must be protected.
OAS has its origins in legislation that is nearly 100 years old — the Old Age Pensions Act of 1927. At the time, advocates such as Woodsworth and Heaps pushed for a national pension scheme as it became clear that a compassionate nation should provide security against “destitution.” Woodsworth famously asked Prime Minister Mackenzie King (dramatically reenacted in a Heritage Minute: “Is it too much to ask that Canada take care of poor people seventy years of age who built this country?”
Unfortunately, the initial offering was only available to British subjects who were aged over 70 and had lived in Canada for 20 years — not quite the system we have now. In 1951, the Old Age Security Act expanded the program to most Canadians over the age of 70, and in 1967, GIS was launched and the age of eligibility was dropped to 65.
Since the implementation of OAS and GIS, seniors’ poverty rates in Canada have declined sharply from 30 per cent before OAS to five per cent in 2023. OAS and GIS play a significant role, accounting for between 26 per cent and 36 per cent of seniors’ incomes. Even a relatively small change can have a significant impact — Employment and Social Development Canada noted that had the age of eligibility for OAS not returned to 65 from 67 in 2016, there would be 100,000 more older Canadians facing poverty.
This is especially important when defined-benefit pension coverage has plummeted from a high of 45 per cent in the 1970s to its current level of around 25 per cent. As Canadians take on more of the burden and risk of their retirement income security, we should ensure that they have a safety net to prevent them from falling below the poverty line.
These benefits also feed directly back into the Canadian economy — seniors spend nearly all of their income locally. Statistics Canada data shows that Canadians aged 65 and older spend 92 per cent of their income on consumption, prioritizing shelter, food, clothing, care and transportation with little spending abroad or on luxury goods. The funds go to those who need it — GIS eligibility is based on a low-income threshold ($22,488 as of 2026), and the OAS recovery tax ensures that the system is targeted to those who need it (it starts on a sliding scale at an income of $93,454).
OAS and GIS are proven pillars of the Canadian retirement system — they slash poverty, recirculate funds into local economies and ensure no older Canadian is left behind. Policymakers must protect and uphold these programs to support dignity, fairness and intergenerational solidarity.