Update: May 22, 2020
The Canadian government has announced the following support for seniors:
1. Registered Retirement Income Funds (RRIFs) minimum withdrawal reduced
The minimum withdrawals requirement from RRIFs will be reduced by 25% for 2020, in recognition of volatile market conditions and their impact on many seniors’ retirement savings.
2. One-time non -taxable payment for seniors
The payment for seniors provides support through a one-time payment:
- $300 for seniors eligible for the Old Age Security pension, and
- an additional $200 for seniors eligible for the Guaranteed Income Supplement
This measure will give a total of $500 to seniors who receive both the Old Age Security pension and the Guaranteed Income Supplement, and will help them cover increased costs caused by COVID-19.
Eligibility
The one-time payment for seniors is available to individuals who are eligible to receive the Old Age Security pension or the Guaranteed Income Supplement in June 2020.
How to apply
You do not have to apply. All individuals who are eligible to receive the Old Age Security pension or the Guaranteed Income Supplement in June 2020 will receive the one-time payment for seniors.
Method of payment
The one-time payment for seniors will be paid to your bank account if you are enrolled for Direct Deposit. If you are not enrolled for Direct Deposit, you will receive a cheque.
Payment amount
If you only receive the Old Age Security pension, you will receive a single payment of $300.
If you receive the Old Age Security pension and the Guaranteed Income Supplement, you will receive a single payment of $500.
If you receive the Allowance or the Allowance for the Survivor, you will receive a single payment of $500.
Spouse and common-law partner
You and your spouse or common-law partner will each receive $500 if you are both receiving the Guaranteed Income Supplement.
For couples where one partner receives the Guaranteed Income Supplement and one partner (between the age of 60 and 64) receives the Allowance, the partner receiving the Guaranteed Income Supplement will receive $500 and the partner receiving the Allowance will receive $500.
Allowance for the Survivor
Recipients of the Allowance for the Survivor will receive the $500 for the Guaranteed Income Supplement.
Non-taxable payment
The one-time payment for seniors is non-taxable. You will receive the full amount (no withholds). You will not receive a tax slip and you will not have to report this amount in your 2020 tax return.
