The Canadian Association of Retired Persons (CARP) is raising concerns about the recent increase in Old Age Security (OAS) that is only eligible for those aged 75 and over, which the organization says leaves many younger retirees at potential risk.

The Canadian government increased the OAS by 10 percent in July, a move that federal officials say is the first permanent increase in the pension in nearly 50 years.

The OAS pension is paid monthly to seniors aged 65 and older in Canada. When the 10 percent increase took effect in the last week of July, recipients aged between 65 and 75 were not eligible.

VanGoarder told CTV's Your Morning on Friday, "Some of our statistics show that the younger group of those aged 65 and over are the most in need of money these days."

CARP, along with the National Association of Federal Retirees and Réseau FADOQ, called on the federal government to increase OAS benefits by 10 percent for all eligible seniors, not just those aged 75 and older.

According to a 2021 statement by the three organizations, "This measure discriminates based on age and risks setting a dangerous precedent by creating two classes of seniors."

While inflation affects all age groups in the country, VanGoarder says newly retired seniors may face a harder time than most.

He said, "People who started planning for retirement 20 or 30 years ago didn’t expect to have inflation like it is now and did not anticipate the fear of running out of money before they die."

"One of the greatest fears of older Canadians now is that they will outlive their money."

OAS is assessed every three months and is based on the consumer price index.

However, VanGoarder says the costs of food, healthcare, and accommodation for seniors are rising—not only during the inflationary period—and these changes are not reflected in the OAS index.

VanGoarder said for people living on a fixed income, a 10 percent increase after 50 years "does not help much."

CTVNews.ca reached out to the federal government for comment but has not heard back yet.