In many Indigenous communities, caring for elders isn't a question — it's who you are. Grandparents raised you. Aunties held things together. Now it's your turn to support them. That's a profound responsibility, and it comes with financial dimensions that are rarely discussed openly.
This guide is about making sure your elders get everything they're entitled to, and making sure you don't burn yourself out in the process. Both things matter.
CPP, OAS, and GIS: the basics
Canada's retirement income system has three main pillars. Many elders don't receive everything they're entitled to, simply because they haven't applied or don't know what's available.
Canada Pension Plan (CPP)
- Based on contributions made during working years. If your elder worked and had CPP deducted from their pay, they've earned a pension
- Can start as early as 60 (reduced) or as late as 70 (increased). Standard age is 65
- The average CPP payment is around $815/month, but it varies widely based on contributions. Maximum is about $1,365/month
- Must be applied for — it doesn't start automatically
Old Age Security (OAS)
- Available to most Canadians aged 65+ who have lived in Canada for at least 10 years after turning 18
- Not based on employment — it's based on residency. Even elders who didn't work in the formal economy qualify
- Maximum is about $727/month (age 65-74) or $800/month (75+)
- Service Canada may automatically enrol some people, but don't count on it. Apply
Guaranteed Income Supplement (GIS)
- An additional monthly payment for low-income OAS recipients
- Can add up to $1,065/month for a single elder
- Income-tested — but here's the key: tax-exempt income under Section 87 is not counted as income for GIS purposes. This means many Indigenous elders on reserve qualify for the full GIS even if they have some income
- Must be renewed annually — typically by filing a tax return. If your elder doesn't file, they lose GIS
The single most important thing you can do for an elder's finances is make sure they file a tax return every year. GIS, GST/HST credits, and provincial benefits all depend on it. Even if they owe nothing. Even if their income is entirely exempt. Many free tax clinics will come to communities or reserves — ask your band office or local friendship centre.
For a single elder aged 65+ with low income, living on reserve:
- OAS: ~$727/month
- GIS: up to ~$1,065/month
- CPP: varies (could be $0 if they never contributed, or $200-800+ if they did)
- GST/HST credit: ~$500/year
- Provincial supplements: varies — BC, ON, AB, and others offer additional seniors' benefits
Total potential income: $1,800-2,800+/month, depending on CPP history and province. Some elders are receiving only a fraction of this because they haven't applied for everything or haven't been filing taxes.
Section 87 and pension income
How Section 87 applies to retirement income depends on the source:
- CPP and OAS — these are generally taxable regardless of where you live. The tax exemption under Section 87 applies to personal property situated on reserve, and government pensions are typically considered situated where the payer is (Ottawa), not where the recipient lives
- Employer pensions — if the pension is from a band or on-reserve employer, it may be tax-exempt. The connecting factors test applies
- RRSP/RRIF withdrawals — generally taxable. The CRA's position is that these are situated where the financial institution is located
- TFSA withdrawals — always tax-free for everyone, regardless of Section 87 status. This is one reason TFSAs are so valuable for Indigenous people
Even though CPP and OAS are technically taxable, many elders on reserve with low income end up paying little or no tax because of the basic personal amount and age credit. And the GIS calculation excludes Section 87 exempt income, which often means a higher GIS payment. The net result can be more favourable than people expect.
Power of attorney and estate basics
These are conversations nobody wants to have. But having them now, while your elder is healthy and clear-minded, is an act of love — not disrespect.
Power of attorney
A power of attorney (POA) is a legal document that lets someone make decisions on behalf of another person. There are two types:
- Power of attorney for property/finances — allows someone to manage bank accounts, pay bills, handle investments, and make financial decisions if the elder can't
- Power of attorney for personal care/health — allows someone to make medical and care decisions. This is sometimes called a health care directive or representation agreement, depending on the province
Without a POA, if your elder becomes unable to manage their affairs, you may need to go through a court process to become their guardian — which is expensive, slow, and stressful during an already difficult time.
This doesn't need to be a formal sit-down. Some approaches:
"I want to make sure I can help you if you ever need it." Frame it as preparation, not prediction. You're not saying they're declining — you're saying you want to be ready.
Start with your own. "I'm setting up my own power of attorney. It made me think about whether you have one too." Leading by example removes the feeling that you're singling them out.
Involve a trusted third party. An elder, a band social worker, or a lawyer experienced with Indigenous families can facilitate the conversation in a way that feels respectful.
Respect the pace. If they're not ready today, don't push. Plant the seed and come back to it. The goal is their comfort, not your convenience.
Wills and estates
Estate planning on reserve has unique complexities:
- On-reserve property — land and housing on reserve don't pass through the provincial estate system. They're governed by the Indian Act (sections 42-50) or, if your band has opted in, the First Nations Land Management Act. ISC (Indigenous Services Canada) has jurisdiction over the estates of Status Indians who ordinarily lived on reserve
- Off-reserve property — follows provincial estate law like anyone else's
- Having a will matters — dying without a will (intestate) on reserve means ISC decides how property is distributed, following Indian Act rules that may not reflect your elder's wishes
The intersection of the Indian Act, provincial law, and band-specific land codes makes estate planning on reserve genuinely complex. A will that works off reserve may not work on reserve. Find a lawyer who understands this space. Some legal aid organizations and Indigenous legal clinics offer will-drafting services.
NIHB benefits for elders
The Non-Insured Health Benefits (NIHB) program becomes increasingly important as people age. For elders, it can cover:
- Prescription drugs — including many medications not covered by provincial pharmacare
- Vision care — eye exams and glasses
- Dental — including dentures, which can be life-changing for elders
- Medical transportation — travel to medical appointments, including escorts when needed. This is critical for elders in remote communities
- Medical supplies and equipment — mobility aids, oxygen, hospital beds for home use
- Mental health counselling — including traditional healing services in some cases
Many elders don't claim everything they're entitled to because the process feels complicated or they don't want to be a burden. Helping them navigate NIHB claims is one of the most practical things you can do.
Keep their Status card current. An expired card can delay claims. The renewal process takes time, so start early.
Use pharmacies and providers who bill NIHB directly. Many pharmacies can bill NIHB at the point of sale so your elder pays nothing out of pocket. Ask the pharmacy if they're set up for this.
Know the pre-approval process. Some services require pre-approval from NIHB before the appointment. Dental work and medical transportation often fall into this category. The provider usually handles this, but it helps to ask.
Appeal denials. If a claim is denied, you can appeal. The first level is an informal review, and it often resolves the issue. Don't accept the first "no" if you believe the service is needed.
Coordinate with provincial programs. If your elder also qualifies for provincial pharmacare or seniors' benefits, submit to the provincial program first and NIHB second. This maximizes coverage.
The balance of caregiving
Caring for elders is one of the most meaningful things you'll do. It's also one of the most demanding. The financial dimension is real: time spent caregiving is time not spent earning income, advancing your career, or building your own savings.
This isn't a complaint. It's a reality that deserves acknowledgment. In many Indigenous communities, the assumption is that family takes care of family — and that's a beautiful value. But it works best when it's shared, sustainable, and supported.
- Share the load — caregiving shouldn't fall on one person. Coordinate with siblings, cousins, and community members. Even small contributions (driving to appointments, handling paperwork, covering groceries) make a difference
- Explore formal supports — home care services, adult day programs, and respite care exist to support families. These aren't a replacement for family care; they're a complement to it
- Protect your own finances — if you're spending money on your elder's needs, track it. If you're reducing your work hours, understand the long-term impact on your own CPP, savings, and career. You can't care for others if your own foundation crumbles
- Ask for help — band social services, friendship centres, and provincial caregiver support programs offer resources. Using them isn't weakness; it's wisdom
Caregiver burnout is real, and it doesn't make you a bad person to feel overwhelmed. Taking care of your own health — physical, mental, financial — isn't selfish. It's what allows you to keep showing up for the people who need you. The best caregivers are the ones who also care for themselves.
Last updated: March 2026