The 2015 federal budget’s reduction of the mandatory minimum withdrawals from RRIFs and similar tax-deferred accounts will reduce the risk that many Canadians will outlive their savings. Yet with yields on safe investments so low, and longevity continuing to increase, the risk is still material, according to a C.D. Howe Institute report.
Organizations like CARP and CPA Canada have been lobbying for years to lower the rate of, or even eliminate, mandatory RRIF withdrawals. On Tuesday, part of their efforts paid off.
There weren’t many surprises in the 2015 federal budget, which includes changes to TFSA contribution limits and the amount seniors will be required to withdraw from registered retirement income funds (RRIFs).
The Conservative government is expected to court the support of older Canadians in next week's federal budget with a number of measures aimed at demonstrating that they're making seniors a priority.
Decumulation is a trending topic in the pension and broader financial services industries. A Google search on decumulation (and variants) and retirement filtered on Canadian domains yields about 65,000 results! Notwithstanding the discourse, recent experiences of my 80-year-old mother with her retirement portfolio demonstrate that the financial services industry currently does a very poor job when it comes to decumulation.
CARP is calling on the federal government to fight seniors’ poverty by eliminating mandatory minimum withdrawals from RRIFs, relaxing GIS rules and introducing measures to counteract the OAS changes for the most needy.
Many retirees face dramatic erosion of their savings due to outdated government rules, according to a report.