The Canadian Association of Insurance and Financial Advisors is commending Ottawa for maintaining a balanced budget, and expresses sympathy with the government’s decision to spend on security rather than offering salves for investors.

“We’re commending the finance minister for the prudent approach taken in previous years which has allowed this government to now spend on security while still maintaining a balanced budget,” said Dave Thibaudeau, president and CEO of CAIFA. “This budget really demonstrates for Canadians the value of sound financial planning. The government was able to use its reserves for unexpected spending initiatives without incurring a deficit. Planning for the unexpected is one of the basic tenets of planning for a secure financial future,” he added.

“While we recommended significant increases in retirement savings limits for Canadians, we understand the necessity of deferring such measures in light of the recent need for increased security measures,” Thibaudeau added. “But we strongly recommend that increases to RRSP and RPP contribution limits remain a top priority.”

In its joint pre-budget submission with the Conference for Advanced Life Underwriting, CAIFA recommended that RRSP contribution limits be immediately raised to $27,000 from the current $13,500 and that those limits be indexed to inflation thereafter. In a related recommendation, CAIFA asked that RPP defined benefit limits be raised to $3,000 per year of service from the current limit of $1,722 and indexed thereafter.

CAIFA believes the increases to contribution limits will ensure that Canadians are provided with a fair opportunity to provide for their retirement years.