Money-Saving Tips For Canadians With Disability
The majority of government programs define “disability” as a disease or injury that prevents a person from working, either entirely or as much as they formerly could. Government research published in 2018 estimates that there are at least 6.2 million disabled persons living in Canada. 22% of Canadians, to be exact.
And when you consider all the people who are unable to work completely due to circumstances beyond their control, you can imagine how difficult it must be for them to maintain their financial stability.
However, saving money during this struggle can be a tough job. So, here are a few tips by Calgary insurance quotes®, the Best Insurance Company Calgary to help you with better financial management and saving some money for rainy days.
#1 Apply for Disability Tax Credit (DTC)
You can reduce your annual income tax payments with the assistance of the Disability Tax Credit (DTC). You must have a “severe and sustained” disability, which must be verified by a physician, in order to be eligible.
For 2018, the maximum was $8,235, or $4,804 for those under the age of 18. Do not forget that these figures will fluctuate annually.
#2 Choose a registered disability savings plan (RDSP)
The government provides a savings scheme to assist parents or caregivers of handicapped people in setting aside funds for their future financial needs
There is no yearly contribution cap, however, there is a $ 200,000-lifetime cap. The recipient does not consider contributions to be income when they are withdrawn since they are not tax deductible.
#3 Get the Canada Disability Savings Grant
the grant you may apply for on top of the RDSP is its finest feature.
The government will match up to 300% of it, for a lifetime maximum of $70,000 and an annual maximum of $3,500, depending on your salary and the amount you give.
Yes, it is free money given to you simply for taking the initiative to save money aside for a person in need’s future.
#4 Apply for your Canada Pension Plan (CPP) disability benefits
Your retirement is intended to be supported and supplemented by the Canada Pension Plan (CPP).
However, if you’ve made enough legally required CPP contributions—which are often deducted from your paycheck—you may be eligible to receive monthly disability payments from it throughout your working years.
#5 Get Employment Insurance (EI) Sickness Benefits
Employment Insurance, or EI for short, is another government benefit that you may apply for.
In the event that your weekly wage has been decreased by more than 40%, you may get benefits for up to 15 weeks. You must have put in at least 600 hours within the “qualifying period” to be eligible (which is the shorter of 52 weeks or since your last EI benefit claim).
For more information, feel free to reach Calgary insurance quotes®, the Best Insurance Company Calgary.
