For Immediate Release
August 8, 2007

PENSION FAIRNESS FOR SENIORS

Ontario’s seniors and retirees have built the foundation for the strong Ontario we know today.  They deserve to have control over their hard-earned retirement savings.  I have received frequent calls and emails from frustrated seniors who wish to have access to funds in their pension plans.

If a retiree wants to withdraw a large amount all at once for home renovations, to pay off a mortgage or help a grandchild through university - it is not allowed under current regulations. 

Imagine that you want to retire at age 55 and there is enough money in your pension, but you aren’t allowed access.  What about a person who is confined to a wheelchair, but can’t even access their own money in order to pay for the costs of making their home more accessible?

Currently, seniors can take money out of their pension under extreme financial hardship situations, or in the case of a life expectancy of less than two years. However, even these circumstances require numerous forms and fees of up to $600 – for access to their own money.

In the 2007 budget the government announced changes that would unlock a small portion of the money and the balance to be withdrawn at age 90. However, at this point no legislation or regulations have been introduced in order to move that process forward.

Other provinces have understood the need for people to have greater access to their money.  These include withdrawals of 50 per cent at age 50 in Alberta, 100 per cent at age 55 in Saskatchewan and 50 per cent at age 55 in Manitoba.

I fully support a plan that would give Ontarians 100 per cent access to their locked-in pension income.  This would mean seniors and retirees would have access to 50 per cent at age 55 and the remaining 50 per cent at age 65.  This does not mean that seniors or retirees are required to take the money out of their pensions; it would simply provide the type of flexibility for people to access their money when they need it and as they see fit.

Individuals know best how to spend their money – not government.  Unlocking pensions will allow seniors to have complete control over the savings they have worked so hard to obtain, and better plan their retirement based on their individual needs.