Eliminate mandatory RRIF withdrawals
COVID-19 puts financial strain on seniors
CARP Members are concerned that the coronavirus pandemic will have long-lasting financial repercussions, putting their retirement savings at risk. Seniors are being forced to alter their investment portfolios at the worst possible time. They must be protected.
CARP members worry about outliving their savings due to mandatory RRIF withdrawals
CARP calls for mandatory RRIF withdrawals to be waived for 2020
COVID-19 has brought fears around financial security to the forefront of CARP Members’ minds. Seniors who have RRIFs are concerned about their retirement savings caused by declining markets and projected losses for an extended and unpredictable period of time. This issue is compounded by the fact that seniors are living longer than ever before, and many depend on their RRIF to provide sustained income throughout their later years.
Seniors deserve to be in control of their retirement savings, especially during a global crisis like the COVID-19 pandemic.
While part of the federal government’s economic response to COVID-19 is to reduce the minimum RRIF withdrawal requirement by 25% for 2020, many seniors would rather leave their RRIF untouched at a time when markets are so volatile. Worse still, many seniors have no ability to earn back this income due to loss of wages during the pandemic.
CARP implores the federal government to temporarily suspend mandatory RRIF withdrawals to protect the financial security of our seniors.
More than 3 in 4 of our members support this change—it has never been more necessary than it is now.
The problem with mandatory RRIF withdrawals
Once Canadians turn 71, they must convert their RRSPs to RRIFs and begin making mandatory withdrawals at a set rate. These rules do not reflect increasing life expectancies, and much shorter time spent in retirement, as people are working longer than ever before. When individuals are forced to draw down on their savings, they risk outliving their funds. This problem is compounded by lower rates of return, declines in personal savings rates, and reduced access to workplace pension plans.
Suspending mandatory RRIF withdrawals is a tangible action that the federal government can take to immediately lessen the threat COVID-19 poses to the financial security of Canada’s retirees.
CARP calls for more financial support for seniors during pandemic
CARP is urging the federal government to address the financial concerns of seniors by taking immediate actionRead our demands
CARP hosts interactive COVID-19 town hall
We invited over 10,000 of our Members to join the conversation with financial experts via phoneWatch the video