The Conservative Party of Canada is the first out of the gate amongst front runners, with promises for Seniors – and have put three of CARP’s top issues on the agenda for this election.
- No change in OAS eligibilty,
- RRIF withdrawal policy, and
- increased financial security for seniors with a higher threshold on income taxes for working seniors.
These are big wins for our advocacy and seniors in Canada. CARP will hold Pierre Poilievre accountable to keep these promises if he’s elected.
Details on the Promises:
Progressive Conservatives announce “Common Sense” plan for Seniors
Conservative Leader Pierre Poilievre announced a sweeping range of plans for seniors that would lower taxes and allow older adults to hold onto more of their savings. Poilievre’s common sense proposal would, according to the Progressive Conservatives, ensure that seniors could “earn up to $34,000 tax free (a boost of $10,000 more than at present), (and) allow seniors to keep RRSPs growing for an extra two years, while keeping the age of retirement at 65 for GIS, OAS and CPP.”
“Our seniors should not have to work. But they should not be punished when they choose to,” Poilievre said in Montmagny, Quebec. “We should reward rather than punish work. Those that choose to grow their savings for longer should have the chance. And we will not raise the retirement age. Seniors will keep getting their OAS, GIS and CPP at age 65.”
Poilievre’s plan has three major items:
- Allow working seniors to earn up to $34,000 tax free—$10k more than now.
- Allow seniors the option of keeping savings growing in RRSPs until age 73, up from 71.
- Protect OAS, GIS & CPP by keeping the retirement age at 65.
In an impassioned statement, the PC leader said: “Many seniors want to continue to work in their retirement. Some like the extra money. Others enjoy the activity. Either way, it should not be punished with clawbacks and taxes. Earnings should go into the pockets of our wonderful seniors.”
Anthony Quinn, Chief Operating Officer of CARP, responded positively to the PC approach. “These are welcome wins for seniors. It’s the first sign we’ve had in this campaign that the parties are listening to CARP and talking to seniors.”
He was also pleased that the mandatory age for withdrawals from RRIFs would be extended from 71 to 73. “Canadians tell us, one of their biggest worries is outliving their money,” Quinn said. “Giving two more years to that opportunity before you have to withdraw your RRIFs and pay taxes on them is a great start, but our members are demanding an end to mandatory withdrawals at any age.”
Update: April 7, 2025
The Liberal Party announced two comparatively small measures on the seniors file today, marking their first specific mention of our cohort.
Promises:
A one-year increase to the Guaranteed Income Supplement (GIS) for the lowest income senior. That would max out at $1.74 per day, for those eligible for the maximum payout.
A one-year reduction in the RRIF withdrawal amount of 25%.
RRIF Scenario 1:
80-Year-Old RRIF Holder with $150,000
Standard RRIF Minimum Withdrawal Rate at Age 80 = 6.82%
Reduced Withdrawal Rate = 6.82% × 0.75 = 5.115%
Regular Minimum Withdrawal:
$150,000 × 6.82% = $10,230
Reduced Minimum Withdrawal (25% cut):
$150,000 × 5.115% = $7,672.50
Amount Retained in RRIF:
$2,557.50 stays invested
RRIF Scenario 2:
65-Year-Old RRIF Holder with $50,000
Standard RRIF Minimum Withdrawal Rate at Age 65 = 4.00%
Reduced Withdrawal Rate = 4.00% × 0.75 = 3.00%
Regular Minimum Withdrawal:
$50,000 × 4.00% = $2,000
Reduced Minimum Withdrawal (25% cut):
$50,000 × 3.00% = $1,500
Amount Retained in RRIF:
$500 stays invested
CARP continues to be concerned about the vulnerability of Old Age Security in the face of austerity – that will come in response to President Trump’s demands for increased military spending and boarder enforcement.
Parties must unequivocally state that they WILL NOT claw back OAS benefits for seniors nor will they impose any new taxes on home equity or capital gains on the sale of primary residences.
