These are tough times for young people.
The affordability crisis—a phrase we’ve repeated so often it should be registered as a brand name—is presenting new challenges to those who want to get an education, start a career and a family, and save to buy a home.
Every generation has had its challenges, but this one is different. It’s not a depression—Canada’s and Alberta’s economies are growing (if slowly). It’s not inflation in the traditional sense, either. After the post-Covid price surge, inflation has returned to manageable levels.
(Of course those “surged” prices are still going up—just not as quickly.)
The first rungs on the ladder are harder to reach than they have been in years. University or college education is enormously expensive. Housing, even affordable rental accommodation, is hard to come by. Entry-level jobs often don’t cover basic living expenses.
Times are tough for old people, too. We live in the same markets that young folks do, with the same affordability obstacles. Most of us, as retirees, have no prospect of moving up the ladder. Our fixed incomes carry less and less purchasing power.
Two stories in today’s paper bring that home. One of them is the call from Alberta Association of Optometrists for seniors to take advantage of eye exam coverage (see story on page 7).
The coverage used to allow seniors to get a full eye exam at no cost. But the insured amount no longer covers the optometrists’ fees completely, and the patient is often (usually?) left to pick up a portion of the cost.
It’s still a great value and an important investment in your own health. But when the wolf is at the door and an exam costs you $40 out-of-pocket, it can be tempting to let the eye exam slide for another month or another year. The main advantage of an annual exam—prevention—can end up lost.
The story on page 11 about Old Age Security also tells of pending tough times for older Canadians. There is a growing campaign to have the federal government stop “subsidizing” wealthy old folks, and redirect the funds to programs for young people.
Old Age Security is not a subsidy. It is, as its name implies, a program that provides income security for seniors. While it is not a savings fund, it is still something that we have all paid into for decades, with the promise that it will be there for us.
There is such a thing as a wealthy senior, there are old people who do not need the added security. For these people, their OAS benefit is clawed back depending on their income from other sources. Any remaining OAS income is taxed at a rate commensurate with their overall income.
For the middle class and for the poor—and there are many more “poor” seniors than Canada would care to admit—OAS is, as the CARP spokesperson says in the article, “a lifeline.”
Meanwhile there are also many programs and “subsidies” that help younger people. These are inadequate, I’m sure, and I applaud anyone who advocates for policies that will give the new generation a fair chance.
But casting a covetous eye on older Canadians’ senior benefits isn’t the answer. Taking away some of Grandma’s much-needed income won’t do much to improve opportunities for young people.
Affordability is a complex problem, and it affects everyone. We need to work together to find solutions instead of squabbling over each other’s grocery money.