The economic update included affordability measures, but progress on key longer-term issues, including pharmacare and equitable access to medications, remains limited.
The spring economic update includes initiatives for older Canadians, such as affordability and fraud protection measures, building on the promises of Budget 2025. While welcome, these measures focus on short-term support and do not yet form part of a comprehensive strategy for Canada’s aging population.
New proposals to streamline the application and certification process for the Disability Tax Credit will improve access for eligible members and Canadians with disabilities. Additional funding for Old Age Security payment processing will help to ensure older adults receive the financial support they are entitled to without delays.
The update also expands on previously announced affordability measures set to take effect this summer and over the next five years. The revamped GST rebate — now called the Canada Groceries and Essentials Benefit — will increase by 25 per cent and include an additional one-time payment, providing enhanced income support for Canadians with low and modest incomes amid ongoing cost-of-living pressures.
“We are encouraged to see the government addressing the cost-of-living concerns that are top of mind for our members,” said Anthony Pizzino, CEO of the National Association of Federal Retirees. “However, it is disappointing that a comprehensive strategy to ensure a healthy, secure aging experience for all Canadians remains undefined. With an aging population, long-term planning is needed with measures to strengthen income security, address social inclusion and enhance access to supportive care and services.”
The update also announced a reduction in the base Canada Pension Plan (CPP) contribution rate from 9.9 per cent to 9.5 per cent, effective Jan. 1, 2027. The most recent actuarial report on the CPP found that contributions could be reduced without impacting the financial sustainability of the plan.
Federal Retirees is carefully monitoring these changes. “There are other ways to address the cost-of-living challenges. Canada’s pension plans must be carefully guarded to guarantee their stability and strengthened to support financial retirement security,” Pizzino noted.
Concerns also remain about the future of national pharmacare. In a recent report by CBC News, Newfoundland and Labrador’s health minister said, “the door was closed on our province” to expand access to free diabetes medications and contraception to Canadians. Uneven implementation creates further inequities in access to affordable medication across the country.
As these issues continue to evolve, Federal Retirees remains committed to working with governments and parliamentarians to strengthen policies that support our members and Canada’s aging population.