Canada's Seniors: In 2026, Finding the Good in the Bad!**

Gold’s Legal Minute*GLM*

By Allan Gold, lawyer Montreal and elder law attorney

Vol. 16, #11 – Dec. 31, 2025

By Allan Gold, lawyer Montreal and elder law attorney

OPENING

In the midst of a cold snap, Canada is turning the page on 2025. Many of us aged 65 + say, “Good riddance – 2025 wasn’t great. We were walloped hard by Trump’s tariff war. Such had an impact on manufacturing, supply chains, prices , etc. – in turn causing job insecurity (elevated fear of job loss), low confidence. Indeed, there was a contraction in Canada’s economy. Consumers struggled with affordability.

At the start of this new year, we’re concerned about what 2026 might hold for us. As a lawyer Montreal, elder law attorney, I believe that feeling apprehensive isn’t an adequate response. Each of us must do something in advance in order to lessen the pain. Step #1 is “Get the facts!” And That’s the purpose of this article.

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“Make New Year’s goals. Dig within, and discover what you would like to have happen in your life this year. This helps you do your part. It is an affirmation that you’re interested in fully living life in the year to come. ” – Melody Beattie 1
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BRIEFING PAPER

Here’s a summary of critical information about the coming year.

Canadian Economy in 2026

As per BDC, this will be a year of uncertainty, slow growth and transition. Key forecasts for 2026 are as follows:

1% – Canada’s projected GDP growth
2% -Projected inflation rate
3% – Average wage increase 2

End of Mandatory Retirement

The federal government amended the Canadian Human Rights Act and Canada Labour Code. By repealing certain, employers may no longer force employees to retire once they reach a certain age.

As a result, seniors may now choose between early retirement with reduced benefits or delaying their exit for increased benefits (up to age 75).

Canada’s average life expectancy/Centenarians

As per Statistics Canada (2023 data), the average life expectancy figures are are follows: Overall: 81.7 years; Females: 83.9 years; Males: 79.5 years.

People aged at least 100 more than tripled between 2000 and 2023, up from 3,393 to 11,705. Indeed, centenarians are the fastest age group. Their numbers are forecast to rise almost 10 times higher over the next 50 years.

Pension

OAS – Based upon changes in the Consumer Price Index (CPI), benefits increased by 0.3% for the first quarter, for an increase of 2.0% YoY from January 2025
CPP – Also due to CPI, there will be a 2 per cent increase to the CPP benefit in 2026.

In principle, such increase are supposed to help pensioners keep up with the cost of living, but it’s getting tougher for them to stretch their fixed income budget.

Housing – Canadian Seniors

Senior Housing Market. It’s a tough market out there. The oldest baby boomers will turn 80 in 2026, augmenting demand for senior housing. With limited new construction, occupancy rates are way up.
Continuing care. The number requiring continuing care shall rise significantly by 2026, placing pressure to meet the need.

Income Tax

The income covered by tax brackets are increasing. Canada’s lowest earners may pay slightly less income tax starting in 2026.

In 2025, that lowest bracket covered the first $57,375 of taxable income. Starting in 2026, that will adjust to reflect the indexed inflation rate. Here’s the situation in 2026.

1^st bracket. Instead of $57,375, it will be $58,523 – this as the lowest income tax bracket
2^nd Level – a tax rate of 20.5% shall be applied to the portion of income that falls between $58,523 and $117,045
3^rd Level – a tax rate of 26% shall be applied to income between $117,045 and $181,440.
4^th Level – a tax rate of 29% shall be applied to the portion of income that falls between $181,440 and $258,482.
Highest income. a tax rate of 33% to the portion of income exceeding $258,482.

Driving Laws (Starting Jan 2026)

Ontario

Things are changing for Ontario’s senior driver’s license renewals. Instead of seniors completing a written test, all those age 80 and older must undergo a mandatory in-class screening process to determine driving qualification.

Quebec

Starting January 2026 in Quebec, there’s a 75% rebate on driver’s license insurance contributions, – this making renewals cheaper for good drivers!
In 2026, stricter SAAQ rules for senior permit renewals and medical checks.

NEWS STORIES THAT JUST CAUGHT MY EYE

“Senior man dies in retirement home fire ” CTV News Toronto at Noon for Dec. 29 2025 reported “A man in his 80’s died after a blaze at Forestview Retirement Residence on Finch Avenue West, near Bathurst Street on Sunday night.”

“Senior talked into signing up for pricey skincare package” “CTV’s Spencer Turcotte took a look back at big stories of 2025 – one was about a senior who was on the hook for thousands of dollars after she signed up for a skincare package.”

Okay, so these don’t have headline status above the fold in a broadsheet newspaper. But these stories do prompt me to make the following year end suggestions.

Smoke detectors. Every senior should have smoke detectors in his/ her home. Install one in all recommended locations: bedrooms, hallways for overall home safety. Seniors and/or family members should check those already installed. Replace batteries (every 6-12 months).
Evacuation Diagram or Evacuation Map. This is the mandatory floor plan for multiunit buildings. Such is posted in hallways showing emergency exits, assembly points, and fire safety equipment, designed to guide occupants to safety during emergencies like a fire. Take a moment to find it and read it carefully.
Scams. Seniors are routinely victimized. These scams typically exploit trust and emotional manipulation, with common examples including grandparent scams, government impersonation fraud, romance scams, and tech support schemes.If somebody you don;èt know asks you for money on one pretext or another, say “NO” because you must check it out first.
Online Purchases. Be careful. Read the fine print. Buyer beware” (from Latin caveat emptor) is a principle meaning buyers are responsible for checking the quality and suitability of goods before purchasing,

NOTEWORTHY

Allan J Gold is now featured in FeedSpot Top 90 Canada Law Blogs. Check it out at https://bloggers.feedspot.com/canada_law_blogs/

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“You are never too old to set another goal or to dream a new dream.” – C.S. Lewis.

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CONCLUSION

In five or so minutes, you’ve been briefed. In my belief, this information is either must know or just something to think about. And just maybe, you might find a silver lining in these times of our lives.

Now it’s up to you. Here are the next steps: Step #2 “Find ways to mitigate negative circumstances.” Step #3 is “Look beyond the immediate struggle and identify hidden potential for positive change.” Step #4 is “Make a plan.”

Happy New Year. Best wishes to you and yours for a healthy and happy 2026.”

ALLAN J. GOLD, lawyer Montreal, elder law attorney.

www.allanjgold.com

NOTICE – CAUTION –DISCLAIMER

The material provided herein is of a general nature, strictly for informational purposes. The interpretation and analysis is not to be misapplied to a personal situation with a particular set of facts. Under no circumstances, are the herein suggestions and tips, intended to bring a reader to the point of acting or not acting, but instead, the hope is that they are to be a cause for pause and reflection. It is specifically declared that this content is not to be a replacement of, or a substitution for, legal or any other appropriate advice. To the contrary, for more information on these presents, related subjects or any other questions, it is the express recommendation of the author that everyone seek out and consult a qualified professional or competent adviser.

https://www.brainyquote.com/topics/new-years-quotes
https://www.bdc.ca/en/articles-tools/blog/canadian-economic-outlook-for-2026

Tags: #incometax, #pension, #retirement

Allan J Gold

Lawyer

Canada’s Seniors: In 2026, Finding the Good in the Bad!**