Ep #40 Jane Robertson: Fighting Tax Inequity for Single Seniors
In this episode, Jane Robertson, founder of “Single Seniors for Tax Fairness”, shares her personal journey. We discuss the challenges faced by herself and other single seniors in retirement. She explains that single seniors make up 39% of all seniors. However, this group is often penalized by the tax system for not having a partner.
Many need two-thirds of the income of a couple to maintain the same lifestyle. There is also the lack of affordable housing which increase financial struggles. Jane also discusses the importance of tax fairness. We delve into the need for policy changes to address the unique challenges of single seniors. We also suggest several potential solutions.
What You’ll Learn in Today’s Episode:
Single seniors make up a significant minority (39%) of all seniors. They face discriminatory tax conditions and unique challenges in retirement.
Single seniors often need 2/3rds of the income of a couple to maintain the same lifestyle due to set costs, like housing.
Many single seniors face a higher tax bill than their married counterparts. If they do not own a home or have significant assets, it can be more difficult for them to maintain financial security in retirement.
Single seniors are advocating for tax relief measures such as a non-refundable tax credit of $25,000, and raising the clawback level of Old Age Security.
Single seniors want the same tax benefits as couples. This includes the ability to transfer their RRSP, RIFF, and TFSA portfolios directly to a beneficiary of their choice, similar to what couples can do.
Leaving money to loved ones, and other non-family members, is just as important to single seniors as it is for people with children. They are concerned that the current tax system will take a significant portion of their assets before it reaches their intended beneficiaries.
Ideas Worth Sharing:
“The whole economy is adjusted to two incomes. And therefore, if you only have one, you’re at a disadvantage.”
“Single seniors face unique challenges, whether they’re lifelong singles, divorcees, or widows, and they might have children as well.”
“Single seniors make up 39% of all the seniors. We are a major minority and yet we’re under these conditions that are discriminatory.”
“Equality means treating single seniors fairly in the tax system.”
“Transferring TFSA and RSP portfolios to beneficiaries should be available to all seniors.”
“Financial struggles in retirement should not be a burden seniors have to bear alone.”
Resources In Today’s Episode:
Single Seniors for Tax Fairness
SSTF Canadian Seniors and Taxes Fact Sheet
“They had families, worked hard and grew old. Now they face their final years in poverty. Why are we failing older women in Canada?” Moira Welsh, St. Catharines Standard
Amounts paid from an RRSP or RRIF upon the death of an annuitant
Jane Robertson: Fighting Tax Inequity for Single Seniors
In this podcast episode, we sit down with Jane Robertson, the founder of “Single Seniors for Tax Fairness” We discuss the unique challenges single seniors face in retirement. We also examine the importance of tax fairness for this demographic.
A Single Retirees Journey
Jane shares her personal journey of realizing that she would not have the traditional life of marriage and children. Instead, she started her own business to secure her financial future. However, as she entered her seventies and eighties, she realized that her tax bill was much higher than her married or homeowner friends, despite having paid taxes her whole life.
Single Seniors for Tax Fairness
As a result, Jane began advocating for tax fairness for single seniors. Most importantly, she started “Single Seniors for Tax Fairness”. Furthermore, she highlights that single seniors make up 39% of all seniors, yet face discrimination in the tax system.
Key Challenges Faced by Single Seniors
Firstly, one of the key challenges faced by single seniors is that they need 2/3rds of the income of a couple to maintain the same lifestyle. This is due to fixed costs like accommodation, which remain the same whether there are one or two people living in a home.
Secondly, Jane explains that tax fairness is important because they do not have the same tax advantages as married or homeowner seniors. For example, married couples can split their income to reduce their tax bill. Ultimately, homeowners can benefit from the appreciation of their property without paying taxes on it.
Solutions for Being Single in Retirement
To address these issues, “Single Seniors for Tax Fairness” advocates for policy changes. As a result, this might look like letting single seniors split their pension income with a dependent, increasing the age credit, and providing a tax credit for seniors who rent their homes.
Furthermore, Jane proposes raising the Old Age Security clawback level for single seniors. Currently, individuals with an income of over $90,000 are not eligible for the age credit. By raising the limit to $120,000 or more, more single seniors could benefit from this credit.
Further, another idea is to allow renters to contribute tax-free to a TFSA (Tax-Free Savings Account), similar to how homeowners can benefit from tax-free capital gains on the sale of their home. Ultimately, single seniors who have never owned a home could then transfer funds from their RRSP (Registered Retirement SavingsPlan) to their TFSA to avoid being taxed at a higher rate upon their death.
Furthermore, Jane advocates for allowing single seniors to transfer their RRSP, RIF, and TFSA portfolios directly to a beneficiary of their choice, similar to how couples can do so with their partners. By allowing this option, single seniors can ensure that their assets go to a loved one rather than being lost to taxes.
Advocacy for Single Retirees
In conclusion, we agree that there is a need for tax policies that do not disproportionately harm single seniors. By implementing some of the solutions suggested, we can create a fairer and more equitable system for all seniors.
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