On May 12, 2020, the Government of Canada announced its long-awaited financial assistance plan for seniors during this period of COVID-19. In his press briefing, Prime Minister Justin Trudeau announced a series of measures to help seniors up to $ 500 for eligible seniors.
Difficult confinement for canadian seniors
Since the start of the pandemic, containment has weighed heavily on the elderly, particularly in financial terms. They find themselves in a difficult situation, where they have difficulty grocery shopping and getting the support they need.
According to Justin Trudeau, “Seniors rely on delivery services and cannot take advantage of the sales. They don't lose their income, but they are under a lot of stress. ” No Canadian should have to choose between buying food, refilling prescriptions, or paying their bills.
The financial assistance granted today to Canadian seniors would be in the order of $ 2.5 billion. Added to this is the goods and services tax (GST) credit of $ 1.3 billion. This credit averaged $ 375 for seniors living alone and $ 510 for eligible senior couples.
Financial assistance measures announced:
For several weeks, Canadians have been waiting for the financial assistance plan for seniors and it is today, May 12, 2020, that Justin Trudeau announced the details of this assistance:
Single payment of Old Age Security (OAS) pension
The government will provide Canadian seniors who received the Old Age Security pension a one-time, non-taxable additional payment of $ 300 to seniors. "If you receive the Old Age Security pension, you will receive an additional $ 300 to help with the costs you have had to pay due to the COVID-19 crisis "- says Prime Minister Justin Trudeau.
Single Payment of Guaranteed Income Supplement (GIS)
The government will also pay Canadian seniors who are eligible for the Guaranteed Income Supplement a one-time, non-taxable additional payment of $ 200. "To help the most vulnerable seniors, we will also provide an additional $ 200 to all those who are eligible for the guaranteed income supplement ”- says Trudeau.
That said, if you received the Old Age Security pension in addition to the Guaranteed Income Supplement, you will receive a total of $ 500.
The Government of Canada website specifies that this financal assistance is available to people who are eligible for the Old Age Security pension or the Guaranteed Income Supplement in June 2020. In addition, you do not need to apply. Everyone who is eligible for the Old Age Security pension or the Guaranteed Income Supplement in June 2020 will receive the single payment for seniors.
Regarding the date of payment, the Government of Canada website states that payment will be issued the week of July 6, 2020. The single payment for seniors will be paid to your bank account if you are registered for direct deposit. If you are not registered for direct deposit, you will receive a check.
Expanding the New Horizons for Seniors Program
The government will invest an additional $ 20 million for the New Horizons program. This program supports organizations that carry out community projects aimed at reducing isolation, improving the quality of life of seniors and helping them maintain a network of social support.
Temporary extension of GIS and Seniors Allowance payments
Seniors will have until October 1, 2020 to file a 2019 income tax return. Normally, they should have filed in July to ensure they continue to receive the Guaranteed Income Supplement.
Other financial assistance measures since the pandemic:
Making a one-time special payment to low and modest income families with the GST credit. About 85% of seniors living alone and almost half of senior couples received this payment.
25% reduction in the minimum amount to be withdrawn from a registered retirement income fund in 2020. This measure will provide more flexibility for seniors and help protect their assets in the face of an unstable market.
A contribution of $ 9 million through United Way Canada to help local organizations provide practical services to Canada's seniors. For example, delivery of groceries, medication or other important items.
The introduction of the Canadian Emergency Benefit (CHP), a taxable benefit of $ 2,000 paid every 4 weeks for up to 16 weeks to eligible workers who have lost their income due to COVID-19. Seniors are among the eligible workers and their pension income has no impact on eligibility for ECP.
