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Decentralized Democracy

House Hansard - 86

44th Parl. 1st Sess.
June 10, 2022 10:00AM
Context: House Hansard - 86 - Jun/10/22
Hon. Kirsty Duncan
  • Jun/10/22 1:49:29 p.m.
  • Watch
Mr. Speaker, after months of consultation with numerous groups and many attempts with the NDP to even have a conversation, this motion is actually on RRIFs and we did not even hear that discussed, so the motion stands.
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Context: House Hansard - 86 - Jun/10/22
Hon. Kirsty Duncan (Etobicoke North, Lib.)
  • Jun/10/22 2:24:24 p.m.
  • Watch
Mr. Speaker, I would like to begin by thanking colleagues for their support of my very focused Motion M-45 to start a national conversation around registered retirement income funds, or RRIFs. Very specifically, Motion M-45 asks the government to undertake a study examining population aging, longevity, interest rates and registered retirement income funds, and to report its findings and recommendations to the House within 12 months. Studies lead to action. Today, when Canadians turn 71, they must convert their registered retirement savings plans, or RRSPs, to registered retirement income funds, or RRIFs, and begin making mandatory withdrawals at a set rate. Seniors are concerned that the current rates do not reflect today's realities, that life expectancy is longer and retirement is longer than when RRIFs were created, and that people risk outliving their savings. I have done a lot of listening to seniors in Etobicoke North and right across the country. What they have told me is that they were forced to take out money from their RRIFs when they did not need the money, when they were not sick, when they had not lost a partner or when they did not need care. However, when they really needed the funds, they had been depleted through mandatory withdrawals. In some cases, they were gone altogether. They said that while their costs were always increasing, their RRIFs were forever decreasing. Canadians are facing a perfect storm when it comes to long-term financial retirement security. Workplace pensions are becoming less common, retirement costs are increasing, and Canadians are living longer than ever before. Increased longevity and longer retirements mean that mandated RRIF withdrawals put people in a position to outlive their savings. Canadians know that the rules around RRIFs have not kept pace with the times, and they expect parliamentarians to listen, to have a conversation and to act. Solutions do exist, whether increasing the mandatory withdrawal age, reducing the rate of withdrawal set for each age, doing a combination of these or eliminating mandatory withdrawals. These are just a few options, and the study could identify more. Rules concerning RRIFs have changed before, and they can change again. After RRIFs were first introduced, amendments were made in 1986, 1992, 2015 and most recently in 2020. Canadians and organizations such as CanAge, CARP, the C.D. Howe Institute, the Investment Industry Association of Canada and the National Association of Federal Retirees have been asking for changes to RRIFs. With this motion, we have an opportunity to do something for those who have given us so very much. Canada's seniors contribute to our communities, country and society in countless ways. They have helped shape our country, and they have raised, mentored and invested in generations of Canadians. They are our parents, grandparents, friends, neighbours, workers and volunteers, and they matter. We must do more than just thank them for everything they have done for us and our country. After all, they laid the foundation for a better future for all of us. One of the best measures of a country is how it treats its older citizens and the most vulnerable. Seniors worked hard. They played by the rules, and they deserve a dignified and secure retirement free from financial worry. I know that every member in the House cares about seniors and ensuring they have a dignified retirement. We have an opportunity to do something really important and impactful. We can come together to start a much-needed conversation, encourage the government to gather evidence and come forward with recommendations to improve RRIFs for Canadian seniors. Canadians want this study, and they want action.
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