Prime Minister Stephen Harper says the government will make major changes to Canada's retirement system that are necessary to ensure it's available now and for the next generation.

Prime Minister Stephen Harper spoke about Canada's finances at the World Economic Forum on Thursday. (Christian Hartmann/Reuters)In a speech at the World Economic Forum in Davos, Switzerland, Harper said the transformation of the retirement income system is needed to rein in government costs.

Harper said the Canada Pension Plan "does not need to be changed" because it is fully funded. The cost of the Old Age Security (OAS), however, could soar as baby boomers reach the age of retirement.

Government officials note the cost of OAS is projected to rise to $108 billion a year in 2030 from $36 billion in 2010. The number of Canadians over 65 is projected to rise to 9.3 million in 2030 from 4.7 million in 2010.

NDP finance critic Peter Julian said his party agrees that there need to be reforms to the pension system, but said reports indicate that the government may increase the age of eligibility for Old Age Security to 67 from 65.

"He's going to oblige Canadians to work two more years before they have access to pensions. That's completely unacceptable," he said.

Harper said the details of pension reform won't come until the spring budget.

Are you worried that changes to Old Age Security could affect your retirement? Would you support increasing the eligibility age to 67? Let us know what you think.



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