CARP wants mandatory RRIF withdrawals eliminated

CARP is calling on the federal government to fight seniors’ poverty in its pre-budget submission to the federal government.

It says this can be accomplished by eliminating mandatory minimum withdrawals from registered retirement income funds (RRIFs), relaxing Guaranteed Income Supplement (GIS) rules and introducing measures to counteract the Old Age Security (OAS) changes for the most needy.

Specifically, CARP calls for the 2015 budget to include measures to:

  • Eliminate mandatory RRIF withdrawals which require people age 71 and over to draw down their tax deferred accounts and pay tax on the withdrawals whether they need the money or not, rather than save for later expenses
  • Increase income supports, especially for single seniors, including OAS, GIS and spousal allowances; increase exemption for casual earnings in GIS rules
  • Help older workers get and keep their jobs
  • Protect investors against bad financial advice
  • Increase CPP and/or create new universal pension plan

“CARP members have strongly supported improved retirement security for future generations—whether a CPP increase or the new Ontario Retirement Pension Plan, which must be made national in scope,” says Susan Eng, vice-president, advocacy for CARP.

“But, the current generation of seniors also needs some help to get by now, especially the neediest, and help to help themselves, to keep their jobs and to protect their savings, starting with letting them keep their RRIF savings intact.”

Related articles: