Changes to RRIF withdrawal rules are among the promises being made
Canada’s retirees are a key battleground for the two main parties fighting the general election campaign, with pledges made by both party leaders to protect their retirement savings.
While the US Treasury Secretary has been telling Americans that retirees are not concerned about the current market rout, Canada’s politicians are keen to show that they are taking seriously the fears that many people have about the effect of tariffs and the economic fallout that could harm their financial security.
Mark Carney said Monday that a Liberal government would protect retirement savings by cutting the minimum amount that must be withdrawn from RRIFs by 25% for one year to allow more flexibility; and increase the Guaranteed Income Supplement by 5% for one year, providing up to $652 more to low-income seniors, tax-free.
“President Trump’s tariffs have ruptured the global economy, and Canadians are rightfully concerned about their retirement savings, their jobs, and their businesses,” said Carney. “In the tough days ahead, we will protect Canadians and build Canada strong. If America won’t lead, Canada will.”
Meanwhile, Pierre Poilievre’s Conservatives have promised to delay the deadline by which seniors must withdraw their savings from their RRSPs by two years; and increase the basic personal amount for working seniors by $10,000, saving working seniors who earn $34,000 an additional $1,300 a year.
More flexibility for Canadian retirees and those approaching retirement has been called for recently by the Securities and Investment Management Association (SIMA), which rebranded recently from IFIC.
Poilievre also said a Conservative government would speed up regulatory approvals for resource projects through a single office for federal and provincial approvals, which he promised would bolster Canada’s economic independence amid the Trump administration’s trade policies.
“My ‘One-and-Done’ rule will quickly and safely unleash Canada’s natural resources by rapidly approving the projects Canadians need more of now: mines, roads, LNG terminals, hydro projects, and nuclear power stations, so we can stand on our own two feet and stand up to the Americans,” he said.
