Jamie Golombek, managing director of tax and estate planning at CIBC Private Wealth Management, discusses the implications of Ottawa’s budget proposal to move the age of eligibility for Old Age Security to 67 from to 65. Also starting in 2013, Canadians will be able to defer taking OAS until later. He spoke in Ottawa.
Job cuts, reduced travel, lower compensation and pension reform are expected to generate annual savings of $5.2 billion
The feds are also moving forward with a plan to increase the age of eligibility for OAS and GIS to 67 by 2023
But the feds are taking a few steps to improve access to capital for financial services firms
Continued relief for small businesses that hire and limits to increases in EI premiums, are aimed at boosting employment
Old age security, packing in the penny
More flexible tax rules and fewer administrative barriers could boost participation
Criteria used to determine whether policies are exempt from accrual taxes have been updated
Proposed change intended to close loophole exploited by some employers
Some retirement compensation arrangements have been used for unintended tax benefits