Retirement advice aimed at Canada’s middle income won’t help those who have fewer years working, lower incomes and no private pension.
To bridge that gap, a series of three free online seminars, with in-person help available are being hosted locally by the South East Grey CHC. (See Page 3)
The seminars will help people look ahead to possible government support, depending on specific factors like their projected CPP, or their years in Canada as an adult, or if they are on government assistance.
The three webinars on May 8, May 22 and June 5 will be shown at different spots in Grey-Bruce. There are “watch sites” both in Dundalk at Erskine Centre and in Markdale at the CHC.
The first week is “What Seniors Get – Government Income”. The second session is “Understanding the Income Tax System”. The last week is “Parallel Universe: The Reality for Low Income Seniors”.
John Stapleton, the presenter, has been working for almost three decades on these topics and is a frequently-quoted expert.
Sponsors of the seminar include United Way, the Bruce Grey Poverty Task Force and the Community Foundation Grey Bruce.
WHY GUIDANCE ON GIS?
The GIS is the Guaranteed Income Supplement for low-income seniors.
Those who qualify for GIS, will be better off taking CPP early, researchers say, unless they are on social assistance or they live into their 90s.
“A GIS recipient opting for early CPP at age 60 would have to live into their 90’s to receive greater net benefits by taking CPP at age 65”, writes Richard Shillington of the Institute for Research on Public Policy.
Every dollar you receive from CPP or RRSPs will reduce the monthly GIS payment by 50 cents. (Some who would like this policy to change have described this as a 50 percent tax rate on those with very low incomes.)
By contrast, the universal Old Age Security only starts being docked at close to $100,000 in income, and then at only 15 percent.
Work income for seniors is different, with no GIS clawback under $5,000 in income.
When it comes to RRSPs, in many situations it’s better for those who will have an extremely low income after retirement to cash out a modest RRSP before 65.
The reason is that withdrawals after that age will mean the loss of 50 cents on the dollar on the GIS payment. Those withdrawals will also be taxed.
Open Policy Ontario writes that with the Tax-Free Savings Account (TFSA), you can withdraw with no penalty to GIS and no tax on the money. For many lower income seniors, a TSFA is a better choice, especially when put into investments not just a savings account.
To qualify for GIS for a single senior takes an income post-65 of less than about $23,000 per year, not including the Old Age Security. CPP and RRSP withdrawals and private pensions are included as income.
The maximum GIS a single person can receive is about $1,100 per month, depending on specifics.
For a couple, there are different GIS amounts, depending on ages and circumstances of both partners.
If an individual received the maximum monthly, from Old Age Security, GIS and the Ontario supplement GAINS of about $90 per month and no CPP, it would be about $2,000 per month, or about $2,800 for a couple.
ADVICE IS HARD TO FIND
All these decisions require advice, and most general articles people can find are not aimed at people with below the median income. In Canada, people also simply equate RRSPs with retirement, while that’s not necessarily the best path for people with lower-incomes.
John Stapleton of Open Policy Ontario has spent three decades doing research. He has prepared material and given countless seminars for those with little or no pension, or income from savings.
The Guaranteed Income Supplement is a big focus. About one-third of Canadians receive the GIS.
Often these people do have modest savings, but are receiving the same retirement savings advice as people would who do not qualify for the GIS.
Of course, what’s best for an individual or couple still depends on a lot of specifics – marital status, other sources of retirement income, tax bracket and more. These decisions are based on best information, and of course, anyone’s circumstances can change, as can government policy.
Social assistance or disability payments are not taxable. When people who receive them turn 65, they leave those programs and receive benefits like OAS and CPP are both taxable.
Middle and high-income people tend to pay less in tax once they reach 65. The opposite is true for many low-income people turning 65.
Open Policy Ontario also provides information on current benefits and income levels to qualify. These will be adjusted over time, but still can help in forecasting income, and making a wise decision.
This article provides general information only, and is not meant to serve as a base for financial decisions. Please consult a qualified advisor.
By M.T. Fernandes, Local Journalism Initiative Reporter
Original Published on May 07, 2026 at 12:23
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