FADOQ

FADOQ welcomed the federal government’s decision in Budget 2026-27 to make the Canada Caregiver Credit refundable, a long-standing recommendation of the organization. However, Ottawa did not respond to FADOQ’s call to enhance Old Age Security (OAS) and the Guaranteed Income Supplement (GIS).

As a result of the change to the Canada Caregiver Credit, thousands of caregivers with little or no taxable income will now be able to benefit from the measure, which can provide up to $1,260 annually.

While FADOQ applauds this improvement, it is disappointed that the budget does not provide an increase to the Guaranteed Income Supplement for low-income seniors aged 65 and over. The budget also represented an opportunity for the federal government to correct an ongoing inequity by extending the 10% increase in Old Age Security to Canadians aged 65 to 74, a benefit that has been available only to those aged 75 and over since 2022.

“The purchasing power of seniors who rely solely on Old Age Security and the Guaranteed Income Supplement continues to erode,” said Yves Bouchard, President of FADOQ. “Targeted increases to these benefits would have helped many seniors rise above the poverty line at a time when the cost of living remains a significant burden.”

Another longstanding concern also remains unresolved. A substantial number of eligible seniors are still not receiving the Guaranteed Income Supplement. Automatic GIS enrolment continues to be limited to Canadians born after 1954, leaving many eligible older adults unaware that they qualify for this essential source of financial support.

For reference, a single person aged 65 to 74 who relies exclusively on OAS and GIS receives less than $23,000 per year.

Welcome relief, but only a temporary measure

The federal budget also includes an enhancement to the Canada Grocery and Essentials Benefit, which replaced the former GST/HST credit. This tax-free payment will provide an additional $339 to eligible low- and modest-income Canadians in early 2027, bringing total support for a single individual in 2026-27 to approximately $1,290.

While welcome, this remains a one-time measure. Permanent increases to Old Age Security and the Guaranteed Income Supplement would provide seniors with lasting income security rather than temporary relief.

New protections proposed for fraud victims

FADOQ also notes the federal government’s intention to amend legislation so that victims of banking fraud can be reimbursed. The budget proposes limiting consumer liability to $0, provided there has been no gross negligence, for losses resulting from unauthorized access to a bank account.

FADOQ will closely monitor the development of this initiative in the months ahead.

Simplifying retirement income rules

FADOQ supports the federal government’s proposal to merge the core features of the Registered Retirement Savings Plan (RRSP) and the Registered Retirement Income Fund (RRIF) into a new “Lifetime RRSP.”

The measure would simplify retirement planning by eliminating the current requirement to convert an RRSP into a RRIF at age 71. Annual minimum withdrawals would, however, remain mandatory.