1. The Government of Canada has introduced a transition plan to raise the age of eligibility for Old Age Security from 65 to 67 years. Using the issues discussed in this course, discuss the pros and cons of the government’s plan. Be sure to include a discussion of Canadian demographics and the implications for the OAS system.

Plans to rise the age of eligibility for Old Age Security from 65 to 67 years will make the individuals needy when they retire, and society has an obligation to prevent them from falling into severe poverty. A non-contributory pension scheme, such as Old Age Security, ensures that all seniors have a basic level of income. It can be argued whether the elderly need a special income redistribution program, aside from the fact that Old Age Security is a federal program and therefore the cost of providing income support for the elderly is borne by all Canadians, whereas welfare programs are funded by the provinces.

With the Canadian population aging an increase in the proportion of older people, will reduce the actual labour force in relation to the size of the older population. One would expect there to be fewer people in the labour force to provide support for those in old age. However there are two sides to the increase in age by 2 years. The pros include if the length of retirement decreases, the individual has more working years to accumulate funds. This shows that an individual can earn more money in the extra 2 years before retiring and claiming for the OAS. Another pro factor is that an individual will be able to contribute more to the economy in the additional two years. This will ensure that there are less people to be supported who rely on welfare support and income transfer. Now people are living longer than they did in the past, so increasing the eligibility from 65 to 67 year seems a sensible approach. With people living longer and better health care resources being provided, healthy individuals can earn more money in those two years and save up more money for their retirement. However the flip side to the increase in eligibility is that it will greatly increase the cost of OAS, while simultaneously reducing the proportion of workers who pay taxes to continue funding the program. A greater number of people will retire at 67 and will increase the cost once they start receiving the benefit. A demographic shift to a population which is aging will require a wide system that incorporates a lifestyle that is healthy and action to making connections between more experienced teachers and young Canadians not an increase in the age eligibility. Keeping the non-workers into context increasing the age of eligibility will increase in the number of retires under the poverty line. Two years is a long time for a senior that is relying on receiving OAS at 65 years. Also two fewer years of eligibility will cost money to an individual and will have to use from their retirement savings. The last con deals with the fact that increasing the age limit by 2 years will keep the seniors tied up in the workforce making it difficult for the millennials to enter.

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2. Compare the demand for health care services with the demand for education services in Canada. Explain why each of these services are similar in some ways, but quite different in other ways.

The demand for health care is increasing with the aging of the baby boomers. People aged 65 and above comprised of around 14% of the total Canadian population in 2010, and by 2036 it is estimated to be around 25% of the total Canadian population. With the increase of the number of people aged 65 years and above, the demand in health care will also go up. Around 75% of people that are 65 years and above have at least one chronic disease. Senior citizens, overall, have more doctor and hospital visits and they take more prescription drugs. Spending on health care is said to increase by an approximate 4.5% per year from 2013 to 2018.

Like the increase in demand for health care services, the demand for education services is also going up. With the continuous globalization and an increase of a demand in specialized skill sets, more and more Canadians are looking into higher and specialized education in order to make themselves stand out in the competitive job market. With this there is a greater demand in private and for-profit education, where there is more emphasis on a higher quality of education.

Both the demands for health and education services depend hugely on the increase of population. Both industries are heavily dependent on funds from the government. Because both industries are funded from the government, the advancements are limited causing Canadians to look into private clinics and schools, which cost the consumers but also provide a higher level of service. The main difference between the demand of the two services is that the health care is essential for the well-being of people, whereas education is not a necessity for survival. The difference between education and health is that education produces benefits that later influences an individual to better health outcomes Health is essential for an individual to receive an education. A person can carry on with an existence without education however can’t live without adequate healthcare. Therefore the demand for health care services will be greater than the demand for educational services.