Issue #29: Funding Retirement in Uncertain Times
Canadian seniors are living longer. In precarious economic times, they need to make their savings stretch further than ever before. Prior to COVID-19, most Canadian seniors faced a material risk of outliving their tax-deferred savings. This is especially true in the time of COVID-19 where expenses have often risen, and assets may have depreciated or are unstable.
Recommendation #99: End Mandatory RRIF Withdrawals Completely
Currently, seniors must start withdrawing from their funds at the age of 71. While the minimum required withdrawal for all types of RRIFs has been reduced by 25% for the year 2020 as a COVID-19 response, it does not go far enough. Canadians are living longer and should be allowed to make their own decisions about investment withdrawals, particularly in these uncertain times. The number of seniors who work past 71 (and are thus punitively taxed by forced RRIF withdrawals) increased from 15% in 1995 to 24% in 2015 and is predicted to be higher in the COVID-19 era and in years to come due to increased financial need.
Recommendation #100: Allow Tax-Free Withdrawals of up to $15,000 per year, for up to three years, from RRIFs and RRSPs During COVID-19
Allow tax-free withdrawals of up to $15,000 per year from RRIFs and RRSPs by persons over age 60. This would provide much-needed access to funds for unforeseen expenses during uncertain financial times.
Recommendation #101: Defer RRSP Capital Gains During COVID-19
During the time of COVID-19 defer RRSP capital gains taxes for up to three years to allow those in need to access their own funds without taxation penalties.
Recommendation #102: Refundable Tax Credit During COVID-19
Create a $500 for a single person and $800 for a couple refundable tax credit to offset increased costs for deliveries, transportation, and support services for people over the age of 60 for up to three years.
Our partner CNPEA (Canadian Network for the Prevention of Elder Abuse) has launched ‘Future Us:
In this webinar on Sept 16th, hosted by Elder Abuse Prevention Ontario, attendees will learn