The Federal budget, released earlier this week, brings several changes that will help people saving for retirement and caring for their family elders. The question, in my opinion, is in the details.
Compassionate care benefits help people who leave work temporarily to care for family members. The benefits extend from six weeks to six months.
Some concerns about the eligibility requirements include whether the family member you care for qualifies, whether the type of care you provide qualifies and whether the kind of illness that your family member has qualifies.
Another question is whether your job is affected if you have to spend more than six months away. Consider also when the rules come into force.
A second important change in the budget applies to the withdrawal limits for RRIFs. Currently, the typical RRSP must change to an RRIF in the year the contributor turns 71. That won’t change.
But the minimum annual withdrawal requirement will drop (apparently as a result of seniors liquidating their RRIFs too quickly) from 7.38% to 5.28% of the market value of their RRIF on January 1 of the year in which they make the withdrawal.
Get advice on these changes if they will affect you.
This ad ran in the Richmond Review on April 24, 2015.