www.waterlooregion.org / poverty / talk
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www.waterlooregion.org / poverty / talk
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Poverty Fact Sheet #4Produced by The Urban Poverty Consortium of Waterloo Region October 25,2000
Seniors and Poverty
Over the last two decades, seniors have experienced a
decline in poverty, due in large part to government
income transfers such as Old Age Security (OAS),
Guaranteed Income Supplement (GIS), Spouse's
Allowance (SPA), and Canada Pension Plan
(CPP)
[2] However, where seniors' only source
of income is government transfers payments, they are
living in poverty, as defined by Statistics Canada's
Low Income Cut-off (LICO). The LICO is adjusted for
community size and measures the amount of money
needed to live and participate as a Canadian
citizen.
A person or family is considered to be living in poverty if their income falls below the LICO. An unattached senior with no other source of income is eligible to receive a combined OAS/GIS benefit of $938.38per month, far below the monthly LICO for a single person of $1,244.
The data for Canada show that the poverty rates for
persons 65 years of age and older and persons under
65 years of age are similar and, for both groups, the
poverty rate is lower for Waterloo Region. Table Two
also shows that, in Waterloo Region, the poverty rate
for seniors is lower than for non-elderly
persons.
The poverty rate for seniors living in the four rural
townships of North Dumfries, Wilmot, Wellesley and
Woolwich is 4.08%, much lower than the poverty rate
of 12.40% for seniors who live in the three urban
centers of Cambridge, Kitchener, and
Waterloo.
[3] However, elderly residents living in
poverty in Waterloo Region's rural communities may
face additional challenges, such as fewer available
services and limited public transportation.
Special Consideration
Seniors who live in poverty are an especially
vulnerable group. A gap in support services or an
inability to access necessary supports can have a
major impact on the lives of elderly persons living
in poverty. Here are some of the issue poor seniors
face:
Senior Women In addition, since men's life expectancy is lower, many more elderly womnen than men are widowed, and their husband's pensions may be cut off or drastically reduced. Women 65 years of age and older are also almost twice as likely as men in the same age group to be living alone. [6] Poor elderly women then are more likely to be sociallly isolated than older men. Because women live longer, elderly women are mre likely to suffer from chronic diseases, such as hypertension. Older men on the other hand, are more likely to suffer from acute illnesses, such as heart disease. The lack of accessibility to the medical supports and services needed for chronic health problems makes poor elderly women particularly vulnerable.
That senior women are more likely to be living alone and to be in poor health, can mean a greater need for support services. Yet a significantly higher poverty rate may limit senior women's access to necessary services. And, while poverty rates for seniors have declined over the years, the long-term decline in poverty rates has been sharper for men than for women. [7]
What the Future Holds
Table Four shows that government transfers are a
significant source of a senior's income and senior
women derive proportionately more of their income
from government sources than senior men. In Urban
Poverty in Canada: A Statistical Profile, Kevin
Lee discussed the "market gap" - where an
individual's or a family's income falls below the
LICO after government transfers are deducted from
total income.
[11] A smaller tax base and larger
elderly population has implications for the number of
seniors who could find themselves "market-poor" in
the future.
Our Stories
"I am 67 years old and my husband is 76.
About 8 years ago, my husband's health began to
deteriorate and he was diagnosed with Parkinson's
Disease. The medication he was prescribed helped for
awhile but the he started having hallucinations.
Further medical tests showed that he was suffering
from a form of dementia with symptoms similar to
Parkinson's Disease and Alzheimer's. We managed at
home as best as we could but, eventually, we received
home care services. This enabled us to remain
together in our home for about another year but my
husband's health continued to get worse. Since March,
1998, my husband has resided in a local long-term
care facility.
"All of my husband's Old Age Security, Guaranteed
Income Supplement and Canada Pension is supposed to
be turned over to the nursing home but I need to hold
back some of his pension money in order to live. I
collect OAS and GIS also but it's very little and,
after I've paid the rent, I'm left with less than
$400.00 per month for food, utilities,
transportation, clothing, personal and medical needs.
When my husband was still at home, our combined
pensions were enough for our needs but now we're
basically maintaining two residences on the same
income. "My husband needs a special chair but I don't know how I'll pay my share of $800.00 toward the cost. Hopefully, the War Veterans will help, as they've done in the past. I have a job but it's on-call and not well-paid so I really can't budget around it and I don't know how much longer my health will allow me to work. Also, if I earn over a certain amount, my Guaranteed Income Supplement is reduced and I'm still in a bind. Sometimes I wonder if my husband is more aware of what's going on than he seems but he just can't express it. If he knew how I was struggling, he would be horrified. I think people don't ever expect to find themselves in a situation like this at my age. Sometimes, I think it's good that we don't know what lies ahead of us." [12]
"Our story comes from a 79 year old woman
who has been widowed for 8 years. She lives on her
own in an apartment that does not have subsidized
rent. She never worked outside the home, so never
paid into any pension plan. She has many physical
constraints that add challenges to her life (she is
in a wheelchair due to bad arthritis in her legs,
knees, back and hips).
"Her limited monthly income consists of half of her
husband's CPP, OAS and a supplement - the total is
$1100.00 per month. Her expenses consist of rent,
groceries, telephone, basic tv, hydro and donations
to her church - very important. Because of her
limited income, she cannot afford the costs of
transportation on a regular basis, such as a cab or
Project Lift. Therefore, she cannot attend church, do
her banking and grocery shopping regularly and can't
see her family and friends as much as she's like.
Because of her limited income, she does not have a
lot of money to spend on birthdays, weddings and
anniversaries. She is a grandmother and
great-grandmother and this is tough as she wishes she
could give more.
"She will ask for help from family and friends if she
finds something physically difficult to do. She will
not ask for financial help from anyone as she is very
proud. She feels fortunate to be able to live
independently as long as she has. She attends the
Home Support Day Program two times per week at a
subsidized rate. If it was not for this financial
assistance, she could not attend and would be
isolated. Physical ailments of aging require
prescriptions which often are not covered by OHIP.
Where is she to find the money for this?
"She gets by on her sense of humor. Without it, she
would not survive. When she is feeling low or
discouraged, she thinks about people who are more
disadvantaged than her."
[13]
Poverty Fact Sheet Series
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