Spring Economic Update 2026: Important Initiatives for Older Canadians
On April 28, 2026 the Minister of Finance tabled the Spring Economic Update (SEU) under the theme of “Building Canada Strong, For All.” There were several initiatives announced that will impact the lives of older adults in Canada.
Making it Easier to Access the Disability Tax Credit
The NIA is pleased to see a number of proposed improvements to the Disability Tax Credit (DTC) application process. The DTC is a gateway to access a number of supports, including the Canada Disability Benefit. The changes will streamline the application process for those with a severe and prolonged impairment in physical or mental functions, which disproportionately affect individuals who are older and who have low-income and could benefit most from additional financial supports. The application process will be further improved by expanding the list of medical practitioners who can certify DTC eligibility, including physiotherapists, speech-language pathologists, and occupational therapists, and recognise provincial and territorial public guardians and trustees as qualified certifiers for adults in their care. These changes align with recommendations made by the Canadian Centre for Caregiving Excellence in the National Caregiving Strategy, which the NIA has proudly endorsed.
Reducing Canada Pension Plan Contributions
By reducing the base Canada Pension Plan (CPP) contribution rate from 9.9 per cent to 9.5 per cent, Spring Economic Statement acknowledges the mounting cost-of-living pressures facing households today. This translates into $133 annual savings for a worker earning $70,000 a year.
The 32nd Actuarial Report on the CPP showed that the minimum contribution required to financially sustain the CPP over the next 75 years is at least 69 basis points below the current legislated rate, which means there is space to reduce contributions without harming long-term sustainability. In other words, the CPP is strong, well-financed, and ready to serve the needs of generations to come.
There is still more the federal government could do to modernize and optimize the CPP to enhance retirement financial security. The NIA will continue to advocate for the Pension Delay Guarantee (PDG), a cost-neutral reform that would address the well-documented behaviour known as “loss aversion” that leads most Canadians to claim CPP retirement benefits early and miss out on significantly higher lifelong inflation-protected monthly payments. With over 70 endorsements by pension experts, financial institutions, and associations representing the interests of older adults, the PDG has the potential to improve the financial security of millions of Canadians who rely on CPP.
Old Age Security
The NIA appreciates the SEU’s proposal for additional funding to support the day-to-day operation of the new Old Age Security (OAS) platform and to increase benefits processing capacity. Millions of older adults rely on OAS as a foundation of their retirement income, particularly those who lack workplace pensions. Ensuring older adults receive their OAS and GIS benefits accurately and on time is a critical component of financial security.
National Anti-Fraud Strategy
The NIA supports the government’s ongoing commitment to a National Anti‑Fraud Strategy, which was first announced in Budget 2025. Last week, legislation was introduced to establish a Financial Crimes Agency, an independent law enforcement body dedicated to investigating serious and complex financial crimes. Financial abuse is one of the most common forms of elder abuse, comprising 62% of cases. It can range from financial “scams” such as telemarketing fraud to more subtle exploitation of older adults by taking or ‘borrowing’ money, debit or credit cards, possessions or property without their knowledge or consent.
Financial abuse is more prevalent among older adults due to a variety of factors including social isolation, cultural or linguistic barriers, and sensory, mobility or cognitive impairments, which may increase reliance on family members, guardians, and caregivers. In addition, older adults are often perceived as wealthier or having significant assets making them attractive targets for financial crime. This combination of dependency and perceived wealth heightens the risk of financial exploitation and makes it more difficult for victims and staff at financial institutions to recognize any warning signs during banking interactions.
The NIA looks forward to collaborating with the federal government as it advances the National Anti-Fraud Strategy and encourages the government to ensure that financial abuse of older adults is addressed in both the legislative framework and enforcement priorities of the Financial Crimes Agency.
New Horizons for Seniors Program
While not mentioned explicitly in the SEU, on April 23, 2026 the federal government announced the maximum allocation for New Horizons Seniors Program community-based grants will be doubled, from $25,000 to $50,000 per project, in alignment with recommendations made by the NIA and partners in the community-based seniors services (CBSS) sector. The CBSS sector, which is a vast network of public, private, and non-profit organizations supporting older adults to stay active and engaged in their communities, relies on NHSP grants to administer critical programming. We applaud the increase to the project funding allocation limit, which will enable NHSP applicants to have greater flexibility to design larger scale, more impactful programs.
Artificial Intelligence
The SEU provides a first glimpse into the six pillars of the federal government’s forthcoming National AI strategy. We were pleased to see considerable alignment with the NIA’s report, Developing an Artificial Intelligence Framework for the Health and Wellbeing of Older Canadians, which calls for a principled, risk-based AI regulatory regime that prioritises safety, transparency, accountability, and accessibility for AI-enabled technologies.
AI-enabled technologies are already widely used in settings that disproportionately affect older Canadians, yet older adults are systematically under-represented in datasets used to develop these technologies. Without proper representation, these technologies risk entrenching and amplifying existing age-related biases unless age-based inclusivity is not built into the National AI strategy.
As the government moves from an AI strategy to a legislated regulatory framework, the NIA urges the government to ensure that the framework explicitly incorporates an oversight body, a tiered-risk classification system with protections against applications that exploit age-related vulnerabilities, mandatory age-representative training data and bias testing, design standards for accessibility, and meaningful engagement with older Canadians.
Conclusion
The Spring Economic Update 2026 contains meaningful progress on several areas that will benefit older adults. The NIA remains committed to the work still ahead. As Canada becomes a super-aged nation this year, it is more critical than ever to ensure we are meeting the needs of our ageing population. We look forward to working with the federal government to advance income adequacy, healthy ageing, social inclusion and ensuring older adults can age in the right place.