by Rudy Buttignol, C.M.
According to the latest polls, only two of the major political parties have a realistic prospect of forming the next government. Thus the focus here is on the Conservative and Liberal positions on seniors.
In the second week of the campaign, the Conservative party announced three promises targeted to seniors. Keeping the retirement age at 65 is reassuring, as a previous Conservative government had proposed raising the age to 67 years. The Conservatives also propose incentivizing seniors who work by allowing them to earn $34,000 tax-free. This acknowledges the fact that many older adults must continue to work as the ever-increasing cost of living chips away at their retirement savings. It is also good for the economy.
The Conservatives are also proposing a change to the mandatory RRSP contribution and RRIF withdrawal age, moving it from 71 to 73 years. It’s a good start but doesn’t go far enough. For two decades, CARP has advocated for the end of mandatory withdrawals. Seniors need to control the timing of withdrawals from their retirement savings to match their individual healthcare and financial needs. This change would have an immediate and positive impact on seniors’ financial security and cost the government nothing, as it will collect the tax eventually.
In the third week of the election campaign, the Liberals released their first promises to seniors. Unfortunately, they were both tepid and limited. The Liberals propose a one-year reduction of 25% on mandatory withdrawal from RRSPs. They also promise a 5% increase to the guaranteed income supplement for low income seniors for one year. That works out to an average of only $1.74 per day for those most in need. These two measures look more like election campaign gimmicks than a sincere vision for the care of an aging population.
All of the parties campaigning in this election share one thing in common – big ticket promises, some more specific than others, but no indication of how they propose to pay for any of it. Higher taxes? Greater deficits and debt? Or will it be cuts to services and entitlements such as Old Age Security (OAS)?
During the election campaign, as a CARP member, you should question your local candidate about their positions on OAS, mandatory withdrawals and support for homecare. Then, be sure to ask them where the funding will come from. Let that be your guide to weighing the probability of promises being fulfilled.
