by Morinville News Staff
Two Conservative MPs are calling on the Liberal Government to allow Canadians penalty-free access tot heir retirement savings as a result of the pandemic.
Conservative Shadow Minister for National Revenue Marty Morantz and Conservative Shadow Minister for Finance Pierre Poilievre are proposing measures to help families and seniors affected by the COVID-19 crisis.
Under current Registered Retirement Savings Plans (RRSP) withdrawal requirements, families and seniors cannot access their investments without paying significant penalties.
The Conservatives say seniors have also raised concerns with the requirement to cash out Registered Retirement Income Funds (RRIF) during the pandemic, which is devaluing their investments.
Conservatives are calling on the government to address these concerns, by allowing Canadians a special one-time withdrawal from their RRSP in 2020. If repaid by December 31, 2023 the withdrawal would be tax-free. They are also asking the Liberals to waive mandatory registered retirement income fund (RRI)F withdrawals until December 31, 2020.
“Allowing Canadians to borrow from their RRSPs to pay their bills during this critical time is simply the right thing to do,” Morantz said. “This initiative will give Canadians who are struggling to make ends meet, including small business owners and seniors, access to their own funds instead of having to rely on government benefits.”
Poilievre added that Canada’s seniors have been left asking where their support is.
“Our seniors feel neglected and ignored during these trying times and need more money in their pockets. Waving 100% of mandatory withdrawals on RRIFs will help provide seniors with the additional support they are looking for.”