Almost 40 per cent of Canada's seniors lived in poverty a generation ago. That figure has shrivelled to just 5.8 per cent today, the lowest poverty rate of any age group, thanks to concerted public policy and spending.

A new advocacy group is working to see that kind of action aimed at the growing plight of those in their 20s, 30s and 40s who are staggering under the weight of student debt, skyrocketing home prices, lower incomes than their predecessors and the daunting costs of starting a family.

Generation Squeeze wants a better deal for young people who are "working and studying more to have less" as generational inequality grows in Canada.

"Young adults are squeezed for time and for money and they're also squeezed for government services while the environment continues to deteriorate," said Paul Kershaw, founder of the Association for Generational Equity.

The squeeze is so tight that no amount of education or hard work can loosen the grip, he says.

Kershaw, 41, is a public policy professor at the University of British Columbia and will be a presenter at the Our Future Hamilton: Communities in Conversation workshop Sept. 19 that will help create a vision for the city's next 25 years.

Generation Squeeze, which incorporated as a non-profit in March, aims to grow its membership to one million Canadians who will sway governments, institutions and corporations.

Canadians still hold the outdated notion that seniors are struggling, says Kershaw. And since those 65-plus are the most dedicated voters, politicians continue to echo the myth, says Kershaw.

"No political party has acknowledged the age pattern in social spending and that disproportionately it is young adults feeling the squeeze."

He stresses that asking for more for younger people doesn't mean taking away from older Canadians.

"We love our parents and grandparents and they love their kids and grandkids. Older people know that their kids aren't doing as well as they should be."

INEQUALITY

The problem: Age inequality in social spending.

The evidence: Canadian governments spend about $33,000 a year for each person over 65 and about $12,000 for those under 45. Canada spends $50 billion more each year on health care than it did in 1976 and $30 billion more on public pensions. A recent study of 29 OECD countries found Canada ranked 25th in intergenerational justice.

Why it matters: Young adults are delaying marriage, home ownership, children and saving for their futures.

Some solutions: Just a shift of per capita spending of $1,000 toward young adults would help. Among the options, governments could raise the eligibility age for CPP and OAS and tax pension income at the same level as wage income.

HOUSING

The problem: Rising home prices hurt young people.

The evidence: Accounting for inflation, the average home price was $201,118 in 1976 and is $408,068 today. That doubles the amount of time needed to save for a down-payment from a national average of five years then to 10 years now.

Why it matters: Needing help from parents, delays in establishing families, having fewer kids, paying the mortgage requires two incomes, longer commutes.

Some solutions: Free money to save/pay for homes with $10 per day child care, 18 months of parental leave, tax breaks for families, less onerous student debt and repayment.

Loading... Loading... Loading... Loading... Loading... Loading...

INCOME

The problem: Falling incomes for young people.

The evidence: Two incomes barely provide today what one income did in 1976. Accounting for inflation, the average household income 40 years ago was $65,360 and today it's $68,580. The gap in earnings between those aged 50 to 54 and those 25-29 has grown from 47 per cent 30 years ago to 64 per cent today. And seniors' incomes have jumped 40 per cent since 1984, while younger Canadians' incomes have climbed just 3 per cent.

Why it matters: Delays in starting families, low retirement savings, need for dual-incomes even with small kids, declining incomes of working Canadians hurts government revenues.

Some solutions: More tax breaks tied to need than age, encourage employers and unions to stop paying new workers less in wages, benefits and pensions than older workers.

WEALTH

The problem: Declining wealth for young people.

The evidence: Wealth is up almost $67,000 for those under 35 since 1976 and up $185,202 for those over 65. The median net worth of seniors is up 70 per cent since 1999, while those under 35 have seen their debt climb about the same. The typical senior enjoys nearly nine times more wealth than the typical 25- to 34-year-old, up from a wealth gap of four in the early 1980s.

Why it matters: Young people's finances are precarious and they can't save for their futures.

The solution: Reduce property and wealth tax breaks for seniors and funnel the savings to policies for young adults, tie discounts on public services such as transit to need rather than age.



Correction Published: 20150828 - A story in Saturday's Spectator said Generation Squeeze supports raising the eligibility age for CPP and OAS to increase social spending for younger Canadians. In fact, the lobby group advocates changing pension benefits for higher-income seniors but not an increase in age for collecting pensions.