Office of the Superintendent of Financial Institutions
12 July 2012
The article OAS cost may tally $109B by 2030 (July 11, 2012) unfairly downplays the significance of longevity as a reason for the projected cost increases to the Old Age Security Program.
In fact, there are three main contributing factors to the projected increase of $73 billion in costs over the twenty- year period: baby boomers (41%, $30 billion), longevity improvements/declining mortality rates (32%, $23 billion); and the expected impact of inflation (27%, $20 billion).
As such, the effect of each contributing factor is significant and none should be characterized as being minor.