Some help for those feeling the pinch

Many retirees feel they’re not only facing an unpredictable future when it comes to their health, but also an uncertain economic future with respect to their retirement investment savings.

Being forced to wait for the market to rebound is something most older investors have done many times in the past, such as the 2008 financial crisis, and before that with the global stock market crash after Sep. 11, 2001. I know it’s devastating to see your retirement savings take a hit, and the thought of just waiting it out is agonizing. But this is indeed what we must all do.

There are a few government benefits you can take advantage of if you are feeling the financial pinch. The Canadian Emergency

Care Benefit provides up to $900 bi-weekly for up to 15 weeks. The Goods and Services Tax credit (GSTC) coming out this month will also provide some relief, with $400 for single individuals and $600 for couples.

The good news for those retirees accessing their portfolios this year is that the government has now reduced the minimum amount that must be withdrawn from a Registered Retirement Income Fund (RRIF) by 25 per cent for 2020 in recognition of volatile market conditions and the impact on many seniors’ retirement savings.

This will also apply to those seniors receiving variable benefit payments under a “defined contribution” registered pension plan. Talk to your adviser to find out what your required withdrawals will be this year so you can plan your expenditures.

Meanwhile, all taxpayers can defer personal taxes owing without interest or penalties until Aug. 31, 2020. The deadline to file your tax form has been delayed to June 30. Christine Ibbotson is author of Don’t Panic: How to Manage Your Finances and Financial Anxieties During and After the Coronavirus and How To Retire Debt Free & Wealthy. askthemoneylady.ca