Editor:
The federal government has rolled out various support measures for Canadians, all of which I support. There has been one missing element: What is the government doing to support seniors?
On the federal government website, detailing the COVID-19 Economic Response Plan, the one lone entry for seniors is reduced minimum withdrawals for registered retirement income funds. That is woefully inadequate.
Reducing the minimum withdrawal is useless and may do more harm than good. However conservative a person’s RIF funds are, they are still exposed to some reductions in value in the current economic climate. For those who rely on a monthly withdrawal to live on, reducing the minimum does nothing for them. And by taking out the amount they need their RIF is going to deplete even faster.
In addition to CPP and OAS, plus any pension funds, many seniors rely on their investments as an integral component of their monthly income. Yet the value of these investments have taken a significant hit. Since many seniors make monthly withdrawals to cover basic expenses, their investments are going to deplete much more quickly.
Investment advisors tell people not to sell because over time their portfolio will regain its value. But seniors do not have the luxury of time. They have to sell and they are selling investments at a much lower value.
Seniors also rely on dividends for income, but many companies paying dividends are either reducing them or cancelling them altogether. Even the banks - a normal safe haven - have reduced their dividends.
All seniors are asking for is the same kinds of support that the federal government is readily doling out to other segments of Canadian society.
I am hoping the government realizes it has neglected seniors and they are deserving of equal treatment.
Roger Emsley
