There is a storm brewing in Ottawa, and for the first time in years, it isn’t just politicians talking—it’s the Canadian public. A series of new polls released in the spring of 2026 shows a massive shift in how we view our retirement safety net.
Currently, a retired couple can earn up to $185,000 and still receive their full OAS cheques. Most Canadians (over 70%) now say that doesn’t make sense anymore.
The 2026 Reality: By the Numbers
Advocacy groups like Generation Squeeze are pushing for a “modernization” of OAS. Here is what is being proposed:
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Lower the “Clawback” Threshold: Instead of waiting until a household earns $185,000 to start reducing benefits, the proposal suggests starting the reduction at $100,000.
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The Massive Savings: This single change could save the federal government roughly $7 billion every year.
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Where the Money Goes: The 73% of Canadians who support this reform say they only do so on one condition: that every penny of those savings is used to eliminate seniors’ poverty and lower living costs for the younger generations who are struggling to find housing.
Why Now? The “Generational” Squeeze
For the first time in Canadian history, the average man over 65 is earning more ($61,600) than the average man in the 25-34 age bracket ($61,200). With the federal deficit projected at $78 billion, many are asking: Is it fair to send taxpayer-funded cheques to six-figure households while low-income seniors can’t afford their medications and young families can’t afford a home?
Current Rules for 2026 (The “Status Quo”)
Until any official legislation is passed, the current “Recovery Tax” (Clawback) rules for 2026 remain:
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The Trigger: The individual clawback begins at a net income of $95,323.
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The Bite: For every dollar you earn above that, the government takes back 15 cents of your OAS.
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The Full Cut-off: If your individual income hits roughly $154,708 (for those 65-74) or $160,696 (for those 75+), your OAS is eliminated entirely.
What to Watch
Here is a video coveringthe “Spring Economic Update” from the Minister of Finance. While the government has been quiet on official changes so far, the growing public pressure from nearly three-quarters of the population means this will likely be a major election issue.
The “Senior Moment” Take
We believe in a “Canada for all ages.” If trimming the benefits of the wealthiest 20% of retirees means we can finally lift the poorest seniors out of poverty and give our grandkids a fighting chance at owning a home, is it a trade-off we are willing to make?
It’s time for a real conversation about fairness. What do you think? Drop us a line at the website and let your voice be heard.
Warmly,
Bill & Marilyn
Founders of Canadian Senior Moment
