Financial Security

CARP—A New Vision of Aging is Canada’s largest advocacy association for older Canadians promoting equitable access to health care, financial security, and freedom from ageism.

Time and time again, CARP members refer to their financial security as a leading concern, often prioritizing over health concerns.  For good reason.

  • COVID-19 hit Canada’s seniors with a slew of out-of-pocket expenses, from premiums on groceries to triple the cost for dispensing fees on prescription medications.
  • During Covid-19, stock markets took a plunge and many saw significant declines in their retirement savings.
  • Most older Canadians have fixed incomes but face rising costs, growing inflation, an unpredictable economy and retirement savings that suffer as a result.
  • The estimated cost of living, upon which governmental supports are based, is outdated.

There are a number of key areas which need changing in order to enable Canadians to have a safe and robust means of saving for retirement and to ensure financial security.

Pension Protection

Under April 2023, when companies went bankrupt the assets of the failed company were divided and banks were paid first.  CARP believed pensioners should not be collateral damage in insolvency. Thanks to strong advocacy on the part of CARP and allied organizations within the Canadian Federation of Pensioners , Canada will now protect pensioners by amending the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act to give pensioners ‘super-priority’ status and create a pension insurance program that insures 100% of pension liabilities.

Mandatory RRIF Withdrawals

Once Canadians turn 71, they must convert their RRSPs to RRIFs and begin making mandatory withdrawals at a set rate. CARP believes Seniors deserve to be in control of their retirement savings.  Read More.

Investor Protection

High fees, sub-optimal advice and an unwieldy complaints system put all older investors at serious risk. CARP believes that investor protection should be the linchpin of capital markets regulation and that any proposed changes should be made through an “investor-friendly lens”; putting the needs of the average Canadian before those of the financial firms and advisors who stand to profit from their losses.

Banking Ombudsman

Without an independent financial ombudsman service, customer complaints related to banking and investment are not handled consistently and compensation orders are not always upheld. CARP believes it is high time for governments and regulators to act on the repeated recommendations for the implementation of a binding ombuds authority, with OBSI a rational fit given its long track record of serving the public interest.

Adequate Financial Support

Governmental supports that aim to protect the financial security of our most vulnerable citizens need to meaningful, equitable and based on accurate data.  CARP believes that the (cost of living), guaranteed income support, old age security, and survivor’s pensions need changes to adequately meet the needs of older Canadians.