XPost: can.politics, bc.politics, man.politics   
   XPost: mtl.general, sk.politics, ab.politics   
      
   On 23/04/2015 2:57 PM,  wrote:   
   > And *they* have better memories than most think . . . ◕‿↼   
   > ______________________________   
   >   
   April 21, 2015   
   FOR IMMEDIATE RELEASE   
      
      
   CARP members welcome government action in Budget 2015 to reduce mandatory RRIF   
   withdrawal rates for retirees, to almost double the TFSA from $5,500 to   
   $10,000, to increase the amount of time Canadians can draw on employment   
   insurance for compassionate leave to provide caregiving to loved ones.   
      
      
   TORONTO, ON: CARP members will appreciate the specific commitments in Budget   
   2015 that will give Canadians more tax-free savings room and more control over   
   their private retirement savings.  Increased support for caregiver leave will   
   be a significant boost to people who have to leave work to provide care to   
   family.   
      
   CARP members will also welcome the new Home Accessibility Tax Credit that will   
   be applied up to $10,000 of eligible home renovation expenditures per year,   
   providing up to $1,500 in tax relief.   The credit will help many seniors and   
   those with disabilities to live healthy independent lives in their own homes.   
   But CARP members still expect the federal government to take a leadership role   
   on national health standards and helping Canadians retire with financial   
   security.   
      
   Two-thirds of CARP members support TFSA increase.  In a CARP Pollâ„¢, CARP   
   members voice strong support for increasing the annual TFSA contribution limit   
   to $10,000.  The vast majority (81%) contribute to a TFSA.  In the CARP Pollâ„¢   
   answered by more than 1,400 CARP members:   
      
        Two-thirds (67%) support increasing TFSA limit from $5500 to $10000   [39%   
   support it strongly]   
        The vast majority (81%) have a TFSA   
        71% want changes to the RRIF rules to avoid outliving their money   
        81% think the government should encourage saving for retirement, not   
   spending for today   
      
   The support for increasing the TFSA limit is rooted in concern for adequate   
   retirement income and any measure that encourages it is a step in the right   
   direction. TFSAs have particular value for retirees who can no longer   
   contribute to RRSPs and for lower income earners who do not benefit as much   
   from tax deductible RRSP contributions. TFSA contributions are not deductible,   
   so taxpayers pay taxes currently and eventually take the savings and earning   
   out tax free.   
      
   RRSP contributions are deductible currently but are taxable when withdrawn.   
   When TFSA’s were first introduced, CARP advocated for extra room for older   
   Canadians who lost significant investments during the market crash and needed   
   tax-free room to rebuild retirement savings.   
      
   RRIFs   
      
   CARP members strongly support relaxed rules for RRIF withdrawals.  Almost 90%   
   of CARP members have or will have RRIFs, but more than half are worried they   
   will outlive these savings.   
      
   Mandatory RRIF withdrawals currently force seniors to draw down and pay tax on   
   their retirement savings in increasing percentages until age 91 when their RRIF   
   would be close to empty.  People are left with much reduced funds just when   
   they have the greatest needs and given today’s increased longevity, the RRIF   
   rules put ever more people at risk of outliving their savings.   
      
   There are 265,000 Canadians 90-plus today.   
      
   The probability of reaching that age has doubled for women and tripled for men   
   in the last two decades and together with the baby boom generation reaching   
   these ages, the raw numbers of people living beyond 90 is expected to rise   
   dramatically.   
      
   The counterproductive nature of the RRIF rules was shown in high relief during   
   the market crash of 2008.  RRIF withdrawals are calculated based on the asset   
   value in January and most people would not withdraw until December, by which   
   time share values had plunged by as much as 50% in 2008.  Seniors then had to   
   take out twice as many shares, thereby depleting their deferral room at an even   
   faster pace, especially if they also needed to redeem additional shares to pay   
   the tax.  CARP members called for relief and were granted a 25% discount in the   
   withdrawals required for 2008 only.   
      
   RRIF rules have not kept pace with increasing lifespans and time spent in   
   retirement, declines in personal savings rates and reduced access to workplace   
   pension plans.  When the original RRIF rules and withdrawal rates were   
   introduced in 1978 and then increased in 1992, lifespans and time spent in   
   retirement were much shorter than today and Canadians on average spent less   
   time in retirement. RRIF holders now face considerable likelihood of running   
   out of money in late stages of retirement.   
      
   Caregiver support   
      
   CARP members have long waited for additional caregiver support from the federal   
   government. Increasing the compassionate care benefit through EI from the   
   current maximum of six weeks to six months will provide a much needed boost in   
   time to working caregivers who need to provide care to family members.  It will   
   also prevent the loss of income many heavy care providers face when forced to   
   step away from employment to provide care.   
      
        8 million informal caregivers in Canada, representing 25% of all Canadians   
        2 million informal caregivers provide heavy care (20+ hours/week)   
        6 million of these provide care to a senior (75% of all informal   
   caregivers)   
        70% of all care to seniors in the community are provided by informal   
   caregivers   
        The majority of caregivers are female (54%) and aged 45-64 (44%) – this   
   group is of particular concern because they tend to outlive their spouses and   
   suffer higher rates of work drop-out and poverty later in life.   
      
   â€œCARP members will welcome the proposals that will help them save and manage   
   their savings for their retirement needs.  The extension of EI compassionate   
   benefits will also be very welcome for people who have had to ‎drastically   
   reduce their work hours to look after a loved one.   
      
   The major change, even more important than increasing the 6 weeks benefit to 6   
   months, is the relaxing of the requirement of needing a 6 month terminal   
   diagnosis to 12 months.  That has been a major hurdle for access to this   
   benefit and this is a very welcome change.  To make it better, they should just   
   remove the requirement altogether.â€� Susan Eng, VP Advocacy, CARP   
      
   â€œThese changes are valuable vote getters in an election year but CARP members   
   also want longer term structural change to help their children and   
   grandchildren.â€� Susan Eng, VP Advocacy, CARP   
      
   Federal Leadership still required for national health standards and retirement   
   income security   
      
   CARP will closely watch the upcoming federal election campaigns for commitments   
   to tackle other areas where federal leadership is needed. Read CARP’s full   
   2015   
   Federal Budget Recommendations   
      
      
   [continued in next message]   
      
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    * Origin: you cannot sedate... all the things you hate (1:229/2)