Feds must reform retirement rules: report

By Maddie Johnson | March 24, 2020 | Last updated on March 24, 2020
1 min read

In the wake of the market crash, postponing retirement may be a new reality for many older workers, according to a report from the C.D. Howe Institute.

In the report, Joseph Nunes, co-founder and executive chairman, Actuarial Solutions Inc., argued the rules governing retirement savings should be reformed.

Nunes recommended Ottawa increase the contribution limits for workers in defined contribution pension plans. He also argued that the age at which workers must stop contributing to tax-deferred saving vehicles and start receiving income from them should be raised to 75.

Some relief is already on the way for retirees who are drawing down registered retirement income funds (RRIFs). Last week, the federal government announced that the minimum withdrawal rate for RRIFs will be reduced by 25% this year. 

Nunes also proposed that the government allow retirees to defer income from Old Age Security and the Canada Pension Plan to age 75, with appropriate rates of increase in the benefit rates.

For more information, read the report.

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Maddie Johnson

Maddie is a freelance writer and editor who has been reporting for Advisor.ca since 2019.