February 2026

 

The Canadian Association of Retired Persons (CARP) recently participated in the Bank of Canada’s consultation on renewing Canada’s monetary policy framework for 2026 – the regulations and goals that guide how inflation and interest rates are managed.

Our message was simple: older Canadians need a framework that reflects their lived realities, not just headline numbers, and any future changes to policies must protect financial autonomy, especially for seniors. CARP was at the table to ensure older Canadians’ voices were heard – especially on affordability, housing, financial security in retirement, and access to money in a rapidly digitizing system.

Read CARP’s full submission to the Bank of Canada (PDF)

 

What CARP is asking the Bank of Canada to do

 

Seniors experience inflation differently, and it needs to be acknowledged. 

Many older Canadians live on fixed incomes and spend a larger share of their budget on essentials, such as housing, titles, food, insurance, and healthcare. These are the categories that have stayed expensive even when overall inflation is reported as “back under control”. Official measures like the Consumer Price Index reflect the average household. Seniors are not the average household.

CARP emphasized that Statistics Canada has already shown that seniors allocate spending differently. This difference might look small on paper, but over the years of retirement, small differences compound into real losses in purchasing power.

 

Seniors should not be scapegoats in the housing debate

CARP agreed that housing supply is a major challenge, but pushed back hard on narratives that paint seniors as the culprit of the housing crisis or suggest affordability will improve by pressuring older Canadians to move or taxing home equity. Many seniors planned for retirement around aging in place, often after decades of mortgage payments under very different conditions. Seniors should not pay the price for housing policy misalignment.

 

A centralized digital currency is a definite no-go for seniors

CARP urged the Bank to keep financial autonomy front and centre as monetary systems evolve. Seniors’ lived experience shows that when people lose direct control over their finances, the risk of abuse increases, and barriers like digital-only access or centralized control can disproportionately harm older Canadians.

That is why we were clear: a central bank digital currency that weakens privacy, consent, accessibility, or individual control is not acceptable. Any future direction must protect autonomy and ensure seniors are never forced into a system that makes it easier to restrict access, monitor transactions, or create new barriers to everyday banking.

 

Why Monetary Policy Matters to Seniors 

For many CARP members, monetary policy is not an abstract topic, it directly affects:

• How far a fixed income stretches month to month
• Whether safe investments can generate enough income to pay the bills
• How housing, food, utilities, and healthcare costs change over time
• Whether people can access their own money safely and independently

 

CARP will keep advocating and keep making sure seniors’ voices are heard at the policy tables where decisions are made.