Poilievre reveals tax breaks for seniors, RRSP changes

Conservative Leader Pierre Poilievre promised that if he’s elected senior citizens who choose to work in their old age would not have to pay taxes on up to $34,000 of income they earn.

Source: Facebook

Conservative Leader Pierre Poilievre promised that if he’s elected senior citizens who choose to work in their old age would not have to pay taxes on up to $34,000 of income they earn. Additionally, Poilievre pledged to lower tax rates and allow seniors to have the option to keep their retirement savings in RRSPs for longer.

“Our seniors should not have to work but nor should they be punished if they choose to,” said Poilievre in a video posted to X. “We should reward, rather than punish work for all Canadians. My government will support seniors and let them control their own lives.”

Seniors are currently allotted a tax-free basic personal amount of up to $15,075 on top of an additional $8,790 through the “age amount” tax credit.

Poilievre’s plan would increase the threshold of the tax credit by $10,000, allowing working seniors to earn up to a total of $34,000 tax-free. Under his plan, a senior who makes $35,000 in a year could save $1,300.

Additionally, Poilievre promised that a Conservative government would not raise the retirement age without affecting senior social security programs or Canadian Pension Plan payments.

“Right now Canadians can save tax-free in a registered retirement savings plan while working but by 71 they’re forced to withdraw, triggering taxes and shrinking their retirement savings early,” said Poilievre. “This hurts seniors who want to keep working or need more time to grow their nest egg.”

Poilievre announced that he would allow seniors to keep their retirement savings until age 73, increasing it by two years from the current cut-off of 71.

“We’ll give them two extra years to save and invest and plan for retirement on their terms. More control and more flexibility,” he said. “Obviously, seniors can take their money out early if they prefer but the choice should be theirs.”

The Canadian Taxpayers Federation released a statement in support of Poilievre’s announcement, calling on all other federal parties to also “commit to further tax relief, especially for Canadian businesses which need to be competitive in the wake of American tariffs.”

“Many seniors are working because they’re struggling to pay the bills and this tax relief will help them,” said CTF federal director Franco Terrazzano. “Letting working seniors earn an extra $10,000 tax-free is a good thing and it will make their golden years more affordable.”

Earlier this week, Poilievre pledged to implement a 15 per cent income tax cut for Canadians, which could see two-income families keep $1,800 of their income every year.

If implemented, the tax cut would see Canadians in the lowest income bracket, earning $57,000 a year, have their tax rate drop by 15 per cent to 12.75 per cent.

When compared to Prime Minister Mark Carney’s recent announcement, it amounts to double the potential savings.

The Conservatives predict the decrease would save the average Canadian worker earning $57,000 around $900 and as much as $1,800 per year in savings for two-income families, a change which Poilievre said will be felt most by “modest-income Canadians.”

Following this announcement, Carney pledged that a Liberal government would drop the overall income tax rate by one percentage point.

However, the Conservatives say Poilievre’s 15% tax cut would amount to more when broken down, with Carney’s cut estimated to save a two-income family only $825 annually.