Canadians with Disabilities: New Online Financial Planning Initiative

Author: Employment and Social Development Canada - Contact: www.esdc.gc.ca/eng/home.shtml
Published: 2014/11/06
Topic: Canada - Publications List

Page Content: Synopsis - Introduction - Main

Synopsis: Future Planning Tool for Persons with Disabilities will provide financial information to Canadians with disabilities, their families and caregivers.

Introduction

The Honorable Candice Bergen, Minister of State (Social Development) announced an investment through the Social Development Partnerships Program - Disability Component (SDPP-D) of $427,626 to the Plan Institute for Citizenship and Disability and Prosper Canada for their project, "Future Planning Tool for Persons with Disabilities."

Main Item

Minister Bergen made the announcement with the Plan Institute for Citizenship and Disability and Prosper Canada at a Bank of Montreal branch in Vancouver, British Columbia as part of Financial Literacy Month.

The online project will provide financial information to Canadians with disabilities, their families and caregivers. It will also encourage expanded relationships with financial institutions and financial planners.

The RDSP was launched in 2008 as a long-term savings plan designed to help people with disabilities and their families save for the future. Since then, over 90,000 plans have been opened across Canada.

So far, the Government has contributed over $1 billion in bonds and grants into the RDSPs of people with disabilities, helping to ensure long-term financial security for all Canadians.

The Disability Component of the Social Development Partnerships Program (SDPP-D) supports projects intended to improve the participation and integration of people with disabilities in all aspects of Canadian society. More specifically, the Program supports not-for-profit organizations across Canada in tackling barriers faced by people with disabilities with respect to social inclusion.

The objectives of the SDPP-D are to:

Support the development and utilization of effective approaches to address social issues and challenges;
Develop, exchange and apply knowledge, tools and resources that address the social needs of individuals, families and communities;
Foster partnerships and networks to address existing and emerging social issues;
Recognize and support the ability of not-for-profit organizations to identify and address social development priorities; and
Recognize and promote community engagement initiatives (e.g. volunteerism, corporate social responsibility, innovation by not-for-profit organizations, partnerships, coalitions).

The Registered Disability Savings Plan (RDSP) is a long-term savings plan to help Canadians with disabilities and their families save for the future. With written permission from the RDSP holder, anyone may contribute any amount to the RDSP each year, up to the lifetime contribution limit of $200,000.

RDSP beneficiaries may also be eligible for grants and bonds to help with long-term savings.

The Canada Disability Savings Bond is money the Government deposits into the RDSPs of modest-income Canadians.

Beneficiaries who qualify for the Bond can receive up to $1,000 a year, depending on their family income. There is a limit of $20,000 over the beneficiary's lifetime. Bonds are paid into the RDSP until the end of the calendar year in which the beneficiary turns 49 years of age. Beneficiaries are eligible for the Bond even if no contributions are made to the RDSP.

The Canada Disability Savings Grant is a matching grant the Government will deposit into RDSPs to help people with disabilities save.

The Government provides grants of up to 300 percent of contributions, depending on the amount contributed and the beneficiary's family income. The maximum grant is $3,500 each year, with a limit of $70,000 over the beneficiary's lifetime. Grants are paid on contributions made to the RDSP until the end of the calendar year in which the beneficiary turns 49 years of age.

November is Financial Literacy Month in Canada.

Financial literacy means having the knowledge, skills and confidence to make responsible financial decisions. The theme of Financial Literacy Month 2014, Strengthening Financial Literacy Through Collaboration, underlines the importance of coordinating efforts of organizations that offer programs, resources, information and services to help Canadians understand and manage their personal finances. This is also the theme of the National Conference on Financial Literacy, taking place on November 6 and 7 in Vancouver.

"Our Government introduced the Registered Disability Savings Plan, the first plan of its kind in the world, because we recognized how important saving for the future is, particularly to Canadians with disabilities and their families. We're proud to partner with organizations such as the Plan Institute and Prosper Canada to give Canadians with disabilities a useful resource when it comes to their financial planning decisions. In addition, this project will play a key role in expanding the relationship between financial institutions and the disability community." - The Honorable Candice Bergen, Minister of State (Social Development)

"At PLAN and Plan Institute, we understand first-hand the complexity of disability-related future planning. We are excited to share 25 years of planning knowledge and to partner with Prosper Canada and the federal government to develop a future planning tool that will create safe and secure futures for people with disabilities and give parents peace of mind." - Ted Kuntz, Board Chair, PLAN and Board member, Plan Institute for Citizenship and Disability

"We're very excited to be partnering with Plan Institute and Employment and Social Development Canada to develop further financial planning tools for people with disabilities and their families. With the online tools we develop, we can harness technology to make financial planning and decision-making easier for families, and help them provide a better financial future for their children." - Elizabeth Mulholland, Chief Executive Officer, Prosper Canada

"When Finance Minister Jim Flaherty introduced the RDSP in the 2007 budget, Canada showed the world how a smart, innovative policy can help provide financial security and independence for people with disabilities. We are proud to work closely alongside PLAN to help families secure their future. " - Robert Armstrong, Vice President, Head of Managed Solutions, BMO Asset Management Inc.