Seniors to receive up to $500 in a one-time payment to offset added costs due to COVID-19

Ryan Remiorz/The Canadian Press

Date Published: May 12, 2020

Source: CBC

The federal government has announced financial relief for seniors facing increased costs of living over the past few months due to grocery premiums, delivery fees, and prescription medicine fees. Seniors who qualify for Old Age Security (OAS) will be supplemented with a one-time, tax-free payment of $300 and those eligible for Guaranteed Income Supplement (GIS) will be receive a one-time payment of $200, for a max of $500 given to those eligible for both. The one-time payment is receiving criticism however for being a short term fix as it leaves seniors helpless for the following month. Some state the government funds would be better used with ongoing increases in monthly OAG and GIS funds. A senior advocacy group urges the government to waive mandatory registered retirement income fund (RRIF) withdrawals in 2020 and eliminate withholding tax on RRSP withdrawals for the 2020 tax year, as this will allow seniors to maximize on their cash and savings. The Federal government has promised additional financial support for older Canadians is on the way in the form of increased funding for long-term care facilities and nursing homes and $20 million to prevent senior isolation.

Read the full article here: https://www.cbc.ca/news/politics/seniors-supports-covid19-1.5565743

Summary by: Hira Raheel