Christopher Liew: Retiring soon? Here’s how the election could impact your finances

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Christopher Liew is a CFP®, CFA Charterholder and former financial advisor. He writes personal finance tips for thousands of daily Canadian readers at Blueprint Financial

As Canadians head to the polls, many are thinking about how they’ll afford their future retirement. Soaring living costs, market volatility, and now the ripple effects of rising trade tensions and tariff disputes are making it harder to build a stable retirement nest egg. Those without employer-sponsored pensions or predictable income will be especially struggling.

While public programs like the Canada Pension Plan (CPP) and Old Age Security (OAS) remain as safety nets, many are questioning whether or not these will be enough.

Both the Liberal and Conservative parties have promised to protect these programs while also offering differing visions for how Canadians can continue to build and sustain their retirement plans.

Below, I’ll outline some of the key ideas and promises outlined by both parties and explain how each of their approaches could help the next generation of retirees.

State of retirement in Canada today

In the not-too-distant past, most members of the steadily employed working class could expect a comfortable retirement. Today, a comfortable retirement isn’t guaranteed.

Inflation has driven up the cost of essentials like housing, groceries, and utilities. This, in turn, has eroded some of the spending power for those with fixed incomes and diminished the savings for those with less predictable incomes.

A January 2025 survey by TD Bank Group found that nearly half of Canadians (49%) still see inflation and the cost of living as their biggest financial challenge this year. While that’s down slightly from the previous year, it remains the top concern and highlights just how persistent the affordability crisis has become.

Recent market volatility has also taken a toll, which might leave many with RRSPs and investment portfolios struggling to recover from losses.

Meanwhile, self-employed workers and those in the gig economy lack workplace pensions entirely, leaving them to rely heavily on personal savings or public programs.

Liberal promises and ideas

Mark Carney recently announced measures to protect Canadian seniors amid rising market volatility driven by global trade tensions and tariffs. He proposed a 25% reduction in the minimum RRIF withdrawal for one year, giving retirees flexibility to avoid selling investments at a loss during unstable markets.

Carney also pledged a temporary 5% boost to the Guaranteed Income Supplement (GIS) to support low-income seniors, acknowledging their heightened vulnerability during economic uncertainty.

While Carney has not made explicit promises regarding CPP or OAS, the lack of proposed changes suggests he would keep these core retirement programs intact. Liberal officials have indicated they are studying ways to modernize retirement savings rules as Canadians live longer, but no explicit Liberal promise has been made to raise the RRSP withdrawal age limit.

Carney has also mentioned a middle-class tax cut by reducing the federal income tax rate on the lowest bracket from 15 per cent to 14 per cent. While the single-digit tax decrease may not sound like much, it could save many lower to middle-class seniors several hundred dollars per year in taxes - enough to cover a month’s worth of grocery or utility bills.

Conservative promises and ideas

Similarly, the Conservatives have committed to keeping CPP and OAS benefits fully intact, with no changes to eligibility age or inflation protection. Rather than expanding public benefits, however, the Conservatives’ strategy focuses on reducing the tax burden for seniors.

To support this, one of Poilievre’s promises is to allow seniors to earn up to $34,000 a year completely tax-free ($10,000 more than the current level), aiming to save seniors around $1,300 per year in federal taxes.

Additionally, Poilievre has pledged to drop the federal income tax on Canada’s lowest income bracket from 15 per cent to 12.75 per cent - about 1.25 percentage points lower than Carney’s proposed federal income tax cut.

The Conservatives propose to extend the age limit for RRSP contributions and deferrals from 71 to 73​. Currently, Canadians must convert their RRSP to a RRIF or annuity and start withdrawals by the end of the year they turn 71. Poilievre’s plan would give seniors an extra two years of tax-deferred growth,

Final thoughts

What might actually change after the election is uncertain. Parties aren’t obligated to follow through on all campaign promises. Personally, I’d like to see whichever government gets elected offer more predictability and flexibility for retirees navigating market swings and longer lifespans.

Both parties plan to keep CPP and OAS intact, but their approaches differ. The Liberals focus on modest public supports for low-income seniors, while the Conservatives offer more tax breaks and flexibility to help individuals manage retirement savings on their own.

Either way, it seems like both parties plan to take a more incremental approach rather than attempt to revamp the whole system overnight.