Apr 21, 2015
By Jane Brown
Seventy-five percent of Canadians 65 and over vote regularly in federal elections. And in light of this year’s upcoming vote, this is likely the motivation for the governing Conservatives to provide incentives for seniors in today’s federal budget.
Finance Minister Joe Oliver is widely expected to address a longstanding complaint from older Canadians that their ability to manage their retirement nest eggs is compromised by rules that force them to withdraw cash from their registered retirement funds.
Partly because people are living longer, advocates say its wrong to make people as of age 71 take out set amounts of money every year from their registered retirement income funds, or RRIF’s, and pay income tax on the withdrawals. Oliver is expected to ease or scrap the requirement.
It was also leaked earlier this month the contribution limit for tax free savings accounts would be doubled to $11,000 annually.
Financial investment expert Gordon Pape told Zoomer Radio’s Libby Znaimer, he thinks this is a good idea.
“I believe, number one, that the tax free savings account, are a terrific vehicle for saving and investing. Number two, the fact that our savings rate is very low suggests to me that anything the government does that encourages people to put more money aside, is a very good thing at this point in time,” Pape explained.
And on another zoomer issue, it is also reported that employment insurance benefits will be extended to Canadians who are providing care for seriously ill loved ones.
Have your say on what you’d like to see in the federal budget, on the New AM 740’s Goldhawk Fights Back after the 11am news.
Listen for comprehensive coverage of the budget starting at 4 this afternoon on AM 740/Classical FM News.