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Prime Minister Stephen Harper makes a statement at the World Economic Forum in Davos, Switzerland, Wednesday, Jan. 25, 2012. (Adrian Wyld / THE CANADIAN PRESS) Manitoban Hilda Richardson said she's concerned about the impact raising OAS eligibility age to 67 would have on people.

Worries voiced over federal government's proposal to change eligibility for Old Age Security

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CTV's Josh Crabb on concerns over changing eligibility for Old Age Security
The prime minister floated the idea on Thursday of increasing it to age 67.

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Prime Minister Stephen Harper makes a statement at the World Economic Forum in Davos, Switzerland, Wednesday, Jan. 25, 2012. (Adrian Wyld / THE CANADIAN PRESS) Manitoban Hilda Richardson said she's concerned about the impact raising OAS eligibility age to 67 would have on people.

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Prime Minister Stephen Harper makes a statement at the World Economic Forum in Davos, Switzerland, Wednesday, Jan. 25, 2012. (Adrian Wyld / THE CANADIAN PRESS)

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Date: Fri. Jan. 27 2012 8:38 PM ET

Prime Minister Stephen Harper's suggestions that Canada may eventually change the eligibility age for Old Age Security is raising concerns among some Manitobans.

"Yes it will have an impact and no, I wouldn't be happy with that," said Hilda Richardson. "If taxes go up the way they are and all of that - how are we going to be able to afford things?" she asked. 

In three years, Richardson will be 65, eligible under the current system for an OAS payment of $540 each month, but that could change.

In an economic forum in Switzerland earlier this week, Harper hinted at changes to the system. Harper said Canada's population is aging and suggested the current OAS system is not sustainable.

Federal Conservatives raised the possibility of increasing the eligibility age to 67, up from 65.

Some experts said people are living longer and the government may not have a choice when it comes to changing the OAS eligibility age.

"It's either deal with the problem now or deal with a much larger problem later," said Mike Malazdrewicz, a Brandon University business professor.

In 2010, OAS payments cost the government $36 billion, while that number is expected to reach $108 billion in 2030.

In 2010, there were about 4.7 million Canadians collecting OAS payments while in 2030 that number is expected to reach 9.3 million.

Financial experts said about three quarters of people approaching 65 have the means to retire, but the other quarter of the population does not and would be impacted by increasing the OAS eligibility age to 67.

"Extending it out another couple of years could put a real financial hardship on them," said Greg Anderson from the Royal Bank of Canada.

At this stage, the federal government has only floated the changes as a proposal and has not confirmed details. On Friday, the Prime Minister's Office was trying to deflect political fallout by saying it would delay implementation so Canadians close to retirement would not be affected.

One of the criticisms being directed at the Conservative government is that they made no mention of possible changes in OAS payments in the lead up to last May's federal election.

The government also said any changes won't have an impact on any Canadian who is close to or already 65. 

- with a report from CTV's Josh Crabb

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