Nearly two months into living in some form of isolation, watching retirement savings take a hit, and having to take additional health precautions due to the COVID-19 pandemic, eligible seniors are set to receive a one-time tax-free payment of up to $500. The federal government unveiled its plans to spend $2.5 billion sending these cheques to millions of seniors.
“There’s no question that COVID-19 has been taking its toll on seniors both emotionally and financially… our government is taking action to alleviate some of the stress they may be feeling,” said Prime Minister Justin Trudeau, adding that there’s still work ahead to find long-term solutions to how Canada’s elderly are cared for.
Any senior who is eligible for the Old Age Security (OAS) pension will receive a $300 payment, and an additional $200 is being sent to seniors eligible for the Guaranteed Income Supplement (GIS). The federal government estimates there are currently 6.7 million seniors who are eligible for the OAS pension and 2.2 million who are eligible for the GIS.
Seniors are a demographic that continues to be hardest hit from a health standpoint by COVID-19, with deadly outbreaks in long-term care homes across the country. Others are facing additional economic challenges as many live on a fixed income and have expressed concerns about their ability to make ends meet during this time.
In addition to these one-time cheques, the government is increasing funding to community support programs by $20 million to bolster projects including those aimed at reducing isolation, such as virtual exercise classes and providing tablets and tutorials on how to video conference.
The government is also temporarily extending the GIS payments to seniors if their 2019 income information has not yet been assessed, allowing those people to continue to receive their benefits.
--with files from CTV News--