I support abolition of deferred sales charges harmful to seniors

While other issues distract Ontario residents, the Ford government has made another announcement injurious to seniors. Finance Minister Vic Fideli has announced opposition to the proposed elimination of deferred sales charges (DSCs) on mutual funds under consideration by the Canadian Securities Administrators. As a professional in the field with many retired clients, I consider these fees, sometimes called “back end loads,” like a minefield designed to cut off retreat from a poorly performing asset, and strongly support their complete abolition.

These fees are especially harmful to the increasing proportion of seniors dependent on private savings in their retirement. Under law, RRSPs must be converted to RRIFs by Dec. 31 immediately after one’s 71st birthday, and withdrawals must commence no later than the following year. In a plan to which DSCs apply, these fees are extracted on top of the compulsory withdrawals, resulting in faster depletion of the assets.

Still worse, the charges are considered taxable income, further increasing un productive cost. While total abolition is much to be preferred, some relief to retirees could be delivered by prohibiting the application of DSCs to mutual funds held within RRIFs.

Surely, retirees deserve at least this minimal level of additional protection. Douglass L. Grant, C.F.P., Kitchener