March 27, 2020

Relief is on the way for retirees who’ve watched their portfolios dwindle during the market sell-off sparked by the Covid-19 pandemic.

The federal government has passed legislation to reduced the minimum withdrawal rate for registered retirement income funds (RRIFs) by 25% for 2020.

The move will provide flexibility to seniors’ that are concerned that they may be required to liquidate their RRIF assets to meet minimum withdrawal requirements.

“I think the government has acted smartly in the short-term in providing a measure of relief to retirees drawing down RRIFs,” said Stacey Vanhove, Lead Wealth Management Advisor for Sunrise Credit Union.

“This is making sure seniors aren’t going to unnecessarily be hurt, penalized or disadvantaged by this global economic crisis,” added Vanhove.

Similar rules will apply to those receiving variable benefit payments under a defined contribution registered pension plan.

If you wish to request this change for 2020, please contact your local Sunrise Credit Union branch.

Federal Finance Minister Bill Morneau also re-iterated that eligible retirees will continue to receive Old Age Security and Guaranteed Income Supplement payments without interruption.