Seniors

November 20, 2009

In Nakusp with Dorothy and John Drebet

Being in the Kootenays gives me a chance to talk with constituents on a wide variety of issues.  Seniors, in particular, have concerns regarding protection for their incomes and their pensions.  Our Conservative Government has introduced landmark changes to ease the tax burden on Canadian seniors since 2006. These measures will provide nearly $2 billion annually in tax relief to seniors and pensioners, including:

• Budget 2009 increased the Age Credit amount by $1,000 for 2009 and subsequent taxation years
• The 2008 Economic and Fiscal Statement reduced the required minimum Registered Retirement Income Fund (RRIF) withdrawal for 2008 by 25 per cent, providing $200 million in tax assistance to RRIF holders and allowing retirees to keep more of their savings in RRIFs
• Budget 2007 increased the age limit for maturing pensions and RRSPs from 69 to 71 as of 2007
• The Tax Fairness Plan introduced pension income splitting for the 2007 and subsequent tax years, and increased the Age Credit amount by $1,000 for 2006 and subsequent taxation years
• Budget 2006 doubled the amount of income eligible for the Pension Income Credit (from $1,000 to $2,000) as of 2006
• Budget 2008 introduced the Tax-Free Savings Account (TFSA). The TFSA is particularly beneficial to seniors as it helps them to meet their ongoing savings needs on a tax-preferred basis after they are no longer able to contribute to a RRSP.  In addition, income earned within a TFSA and withdrawals do not affect eligibility for federal income-tested benefits or credits, such as old age security, the guaranteed income supplement and GST credit
• Seniors have also benefited from general tax relief measures such as the two-point reduction in the GST, the reduction in the lowest personal income tax rate to 15%, the increase to the basic personal amount and other amounts, and the increase to the two lowest tax bracket thresholds
• Budget 2008 increased the amounts that can be earned to $3,500 before the GIS is reduced, so that GIS recipients will be able to keep more of their hard-earned money without any reduction in GIS benefits, providing additional financial support to low income seniors still in the workforce
• Budget 2008 announced significantly more flexibility for seniors and older workers with federally regulated pension assets that are held in Life Income Funds to use their retirement savings when and how they require

Clearly, our Conservative Government is working to protect seniors and pensioners. While others play catch-up, we’re delivering results.