More than 10,000 low-income Torontonians are not accessing Old Age Security (OAS) benefits, according to new research from the Wellesley Institute and Open Policy Ontario.
The Unclaimed Benefits report further shows that certain groups are more likely to miss out, including people of color and those with limited English or French language proficiency.
“A lot of people think of OAS as a very simple program. You turn 65 and you apply and as long as you've been in Canada for a good amount of time, you're eligible,” said John Stapleton, a policy fellow at the National Institute on Aging. .
“Not really,” he said.
The application process can be too complicated for many, he said, noting the high number of immigrants in Toronto.
“The rules that affect immigrants are very different from the rules that apply to people who have been here all their lives. And that's probably the source of the confusion,” Stapleton said.
The OAS program provides a monthly pension to Canadian citizens or legal residents age 65 or older who have lived in Canada for at least 10 years since age 18.
According to the report, 83 per cent of older Torontonians were receiving OAS in 2020. Among visible minorities in Toronto, the uptake level was 78 percent. For Torontonians with low English or French language skills, it was 80 percent. Among immigrants to Toronto since 1980, it was 76 percent.
The report uses survey and census data from Statistics Canada to examine OAS uptake among Toronto residents and further breaks this data down by income, immigration status, visible minority status and language proficiency.
The report aims to highlight the importance of simplifying the process of applying for the program, said Wellesley Institute researcher Christine Shepard.
“The key thing is to understand that there are such a large number of low-income seniors in Toronto who are eligible for these benefits and they're missing out and these benefits are really important and can help them thrive and live healthy lives.” said
Eligible individuals can choose to delay receiving their OAS pension in exchange for a higher monthly amount, a spokesperson for Employment and Social Development Canada said in a statement.
“This voluntary deferral provision gives individuals the option to wait until age 70 to start collecting their OAS pension and increase their pension by 0.6 percent for each month they delay, for a total of 7.2 percent for each year of deferral, the spokesman said. He said that 99 percent of the estimated total number are eligible seniors aged 70 and above in the financial year 2023-24.
The research notes that it is possible that tax recovery and strategic deferrals to maximize monthly pension payments play a role for some under-70s. However, there was also a large number of deferrals among eligible individuals age 70 and older. – which means once deferred a large number of people will not claim OAS. Claiming payment.
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The report's findings show the kinds of obstacles seniors commonly face, said Rudy Buttignolle, president of the Canadian Association of Retired Persons.
He said many seniors are isolated and don't know where to start looking for help with an application like OAS.
“The biggest improvement can be made in physical one-to-one contact, making it easier for people to talk to people, whether it's telephone calls to help people through the application process, or the ability to easily access government service offices,” said Buttignol.
Service Canada offers alternative service delivery options to improve access to programs and benefits for clients who face barriers to accessing services through regular channels, according to a statement from a federal spokesperson.
“Service Canada also leads outreach activities such as information sessions and clinics. At the clinics, clients are directly supported in applying for a program or benefit,” the statement says.
OAS plays an important role in reducing poverty among low-income older adults, Sheppard said, especially as the aging population continues to grow. She said that she hopes this research will bring about change.
“We hope that government and community agencies will be able to take this and develop strategies and opportunities to help implement some strategies to increase awareness of this program and increase access for those who would benefit from it,” Shepard said.
