A better way to help out poor seniors |
The government should focus on creating a unified and sustainable system of retirement benefits that helps low- and moderate-income seniors.Kenneth Cheung/iStockPhoto / Getty Images
When the federal government announced in November that its proposal to temporarily loosen RRIF rules was off the table, the financial industry and retiree advocates bitterly voiced their disappointment. These groups have long called for broader reform of seniors benefits, with a particular beef about the mandatory withdrawals from registered retirement income funds that are required starting at age 72.
These types of complaints about seniors needing more favourable fiscal treatment to avoid hardship don’t line up with reality. The truth is that Canada already provides substantial support to seniors – even wealthy ones – leaving younger generations to foot the bill.
The advocates for changes to RRIFs lament that seniors are forced to deplete their savings, requiring them to pay tax