Asset-Based Social Policies / Politiques sociales fondées sur les actifs

To alleviate persistent financial hardship in a segment of the population, traditional government social policies focus on universal or targeted income measures, either direct or through the tax system. A new way of thinking that's gained many converts in the United States and the United Kingdom is an asset-based approach to social policy, where the government encourages low-income individuals and families to save money for their future, or they receive some matching government contributions towards specific types of expenditures, like acquiring a post-secondary education or purchasing a home.

"The Government has received numerous representations from individuals, researchers and businesses that Canada’s tax system should be more conducive to saving. The Government intends to carefully review these representations and to conduct analysis in order to identify possible approaches for future improvements. In particular, the Government will examine whether tax pre-paid savings plans could be a useful and appropriate mechanism to improve the tax treatment of savings and to provide additional savings opportunities for Canadians."
Source:
Investing in a More Productive, Sustainable Economy
(Ch. 5 of The [Federal] Budget Plan 2003)
NOTE: In the fall of 2003, a number of individuals and organizations made presentations and submitted proposals to Finance Canada concerning asset-building social policy options.

Here are just some of the areas where asset-based policies are already in place in Canada:
- Tax-free Savings Accounts
- Registered Disability Savings Plans
- retirement (Registered Retirement Savings Plans)
- post-secondary education (Canada Education Savings Grant Program)
- home ownership (various federal and provincial home ownership assistance programs)
- microcredit enterprises (low-or-no interest loans for business startup for people on low income)
- banking services for low-income people
- special treatment of certain types of assets under provincial-territorial welfare programs.

How can asset-based policies help people and families on welfare when, as social advocacy groups continue to insist (and I agree), welfare incomes are abysmally low?
How low? see the Welfare Incomes series of reports by the National Council of Welfare

"Matched savings and lifetime savings accounts, Individual Development Accounts and tax advantaged approaches to savings (Registered Development Savings Plans) are all elements of asset development and retention that low income people can use. Income maintenance programs, e.g., welfare, can work hand in glove with asset initiatives to reduce inequality of resources and to improve the lives and security of low income Canadians."
John Stapleton, St. Christopher House (December 9, 2003)

What Works When Works Doesn’t?”
Income Security Strategies For Working-Age Adults (PDF file - 204K, 30 pages)
Project Report
June 24, 2004
"Income Security Strategies for Working-Age Adults (...) explores options for developing practical, responsive and modern strategies for income security for working-age people in Ontario and Canada."
- incl. analysis of the treatment of assets under provincial-territorial welfare programs and, among the the proposed strategies for working-age adults, suggests that assets should be protected and allowed to grow beyond current levels within welfare programs.
Source:
Income Security Strategies for Working Age Adults
[ St. Christopher House ]

Also from St. Christopher House:

From pleasure to terror:
Why unexpected money is a problem for the poor (PDF file - 107K, 5 pages)
January 2004
"The purpose of this commentary is to build support for assets based approaches to poverty reduction such as those proposed by Social Enterprise Development Innovations (SEDI) in the context of Learn$ave and St. Christopher House in its Registered Development Savings Plan (RDSP) proposals. It was prepared by John Stapleton, Community Undertaking Social Policy (CUSP) Fellow at St. Christopher House and Massey College.

Welfare Asset Tests

Asset-based policies aren't the magic bullet solution to reduce poverty and welfare dependency and to support efforts towards self-sufficiency in Canada, but they do offer governments a new set of tools to help people on welfare to improve their financial well-being. Welfare programs in a number of Canadian jurisdictions already include special (albeit modest) asset-based features, such as specific exemptions (in the determination of eligibility for welfare) for money set aside in a trust fund for a child's education or pre-paid funeral expenses, and special treatment of assets related to a business.

In order for asset-based social policies to work in Canada's welfare system, provincial-territorial welfare programs would have to modernize (i.e., enhance) their asset exemption policies. The National Council of Welfare's report Welfare Incomes 2003 shows (under "Eligibility") that in the determination of eligibility for welfare, asset exemption levels varied in 2002 from $0 (for young single employable applicants) to $5000 (for people with disabilities). In a number of provinces and territories, asset exemption levels are $1500 for a single person and $2500 for a family - levels that were set in 1975 (and some even before then) for cost-sharing of provincial-territorial welfare costs by the Canada Assistance Plan . If provinces and territories would simply adjust those amounts for inflation from 1975 to 2004, welfare asset exemption levels would be just under $5,500 for a single person and $9,100 for a family. (Converted using the Bank of Canada Inflation Calculator )
NOTE:
June 26, 2010
I wrote the above paragraph in 2004. If you're curious about the current provincial/territorial welfare asset exemption levels, check the "Welfare Incomes" section of the Publications page of the website of the National Council ofWelfare website. Asset exemption levels are provided in the bulletins

Down but Not Out: Reforming Social Assistance Rules
that Punish the Poor for Saving (PDF - 173K, 6 pages)
By John Stapleton
March 2, 2010
Reform is required for social program rules that prevent the poor from saving in Registered Retirement Savings Plans (RRSPs) and Tax Free Savings Accounts (TFSAs), according to a study released today by the C.D. Howe Institute. In “Down but Not Out: Reforming Social Assistance Rules that Punish the Poor for Saving,” author John Stapleton says that encouraging asset accumulation, even in small amounts, is crucial in helping to lift people out of poverty. Yet most Canadian welfare, disability and social service programs deny or cancel benefits if applicants or recipients place a modest level of savings in an RRSP or TFSA. Barring a province-led effort at reform, says Stapleton, the federal government should take the lead by calling on provinces and territories to exempt meaningful RRSP and TFSA amounts from their welfare asset rules, leaving individual jurisdictions to decide the appropriate levels

NOTE: this paper includes a table entitled
"Treatment of Registered Instruments in Provincial Social Assistance Programs in Canada, 2010"
Recommended reading!!
March 2010
For each Canadian province and territory, you'll find information about how the welfare system treats income from Registered Instruments (including Registered Retirement Savings Plans, Registered Education Savings Plans, Registered Disability Savings Plans and Tax Free Savings Accounts). The table also includes current liquid asset exemption levels for selected family types and sizes in each jurisdiction.
Source:
C.D. Howe Institute

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Report: Why don't we want the poor to own anything?
News Release
October 21, 2009
Overly strict welfare eligibility rules are forcing Ontario’s newly unemployed to divest themselves of all their assets, crippling their chances for an economic recovery. Why Don’t We Want the Poor to Own Anything?, by John Stapleton, Metcalf Foundation Fellow and a leading social policy expert, reveals weaknesses in Ontario’s asset limits for those seeking social assistance, disability support, subsidized housing and legal aid.
Source:
Metcalf Foundation

Complete report:
Why don't we want the poor to own anything?
Our relentless social policy journey toward destitution for the 900,000 poorest people in Ontario (PDF - 983K, 30 pages)
By John Stapleton
(...) 475,000 families receive social assistance in Ontario. They have stripped themselves of their liquid assets. They must wait until they no longer require legal aid, and leave public housing, before they can resume saving for anything, let alone save for retirement. In a society that promotes saving and cherishes self-reliance, there is no good rationale for public policy that almost guarantees people will grow old in poverty.

Related links:

Open Policy - John Stapleton's website

The welfare asset trap
October 21 2009
It is well known that when the Conservatives came to power in 1995 Mike Harris gutted welfare rates – leaving needy Ontarians living far below the poverty line. Less well known is that changes were also made to force Ontarians to divest themselves of almost every cent of savings, including cashable RRSPs, before they could qualify for a welfare cheque. In a report to be released Oct. 21, Metcalf Foundation fellow John Stapleton presents a compelling case for allowing welfare recipients to keep some savings. (...) Asset-stripping is just one of the failings of our outdated and mean-spirited social assistance system. The government's promised social assistance review – still waiting to be launched – will find many other hurdles in the path of those in need of a helping hand.
Source:
The Toronto Star

- Go to the Ontario Municipal and Non-Governmental Sites (D-W) page:
http://www.canadiansocialresearch.net/onbkmrk3.htm

Examples of progressive welfare policy from Ontario, BC and Alberta:

Education plans safe under welfare change
Savings funds won't have to be liquidated
'It's a dumb rule,' minister says
October 7, 2004
"The Ontario government is scrapping a welfare rule requiring applicants to liquidate their education savings plans, Social Services Minister Sandra Pupatello says. 'It's a dumb rule that works at cross-purposes to what welfare is suppose to be doing for people and their families ... that rule is going to be eliminated,' Pupatello told the Toronto Star yesterday, adding the change should happen before the end of the year."
Source:
The Toronto Star

Related Link:

Change in policy allows disadvantaged to save social assistance benefits
October 11, 2004
"We would like to take this opportunity to commend Sandra Pupatello and the government of Ontario for taking an important step to end the rule that disallows social assistance recipients from saving for their children's future while retaining their eligibility for benefits.

The whole point of social assistance is to help people to maintain themselves with dignity when they find themselves without resources, usually for a temporary period, and to move themselves out of a cycle of poverty. We fully understand that there have to be rules that limit eligibility to those who do not have alternative means to support themselves. However, we strongly agree with the government that denying eligibility to a parent who saves for a child's future simply perpetuates the very situation that such programs should be designed to prevent.

By making this policy change, Pupatello is also permitting parents in economically insecure situations to save with confidence and take advantage of the new Canada Learning Bond and the proposed enhancements to Canada Education Savings Grants through RESPs. They can now purchase tax advantaged savings vehicles like other Ontario parents and secure a brighter future for their children.

We acknowledge that in taking this step, the government is sending the important signal that federal and provincial policies must work together to respond to real need and the public good. We are hopeful that in taking a clear leadership role in this area, other jurisdictions that have yet to make this change will undertake parallel amendments to their regulations underscoring again the crucial role that Ontario can play in shaping positive social policy in Canada. Once again, we commend Ontario for making this change."

Susan Pigott, CEO, St. Christopher House
David Pecaut, Chair, Toronto City Summit Alliance

Asset-based social policies can help reduce welfare dependency in Canada in the following concrete ways (among others):

- asset-based social initiatives can often provide enough support to low-income households to prevent them from falling into the safety net of last resort (welfare) in the first place;
- self-employment supports and business startup funding can help some people already on welfare in their efforts toward self-sufficiency;
- people on welfare who receive modest inheritances or other windfalls could use the money, up to specified limits, to build a nest egg for themselves or their children;
- welfare clients who work are often discouraged by the prohibitive affects of their jurisdiction's earnings exemption policies (see "Earnings Exemptions" in Welfare Incomes 2003, mentioned above); enhancing asset exemption policies would create some "wiggle room" to allow clients to transfer excess resources into a protected area, whether for discretionary or specific purposes;
- American studies have shown that many families receiving benefits under the Temporary Assistance for Needy Families prograam (American welfare, whose benefits are generally lower than in Canada) were able to find resourceful ways to make modest but regular contributions to an Individual Development Account.

The content below this point is in reverse chronological order

April 2011: TAX TIME!

Whether you're in Canada or the U.S., if you're fortunate enough to have a few discretionary bucks left at income tax time, good luck with your deliberation concerning which investment account to choose. I stumbled across the MoneySmarts blog while searching for something else, but found it helpful enough to include a link to some of its content here.

MoneySmarts Blog : Investing and Personal Finance
This is the personal blog of Mike Holman of Toronto, who has worked in the Canadian financial industry for almost two decades. The site offers information about and links to related resources for : the the Canadian RRSP and the American 401(k), the Canadian TFSA and the American Roth IRA, the Canadian RESP vs American 529 plan.

Selected site content:

* 2011 RRSP Contribution Limits and Contribution Deadline

* Registered Education Saving Plan Rules and Strategy

* Tax Free Savings Account (TFSA) rules

* Canadian TFSA Vs American Roth IRA

Social and Enterprise Development Innovations (SEDI)
" ... a national charitable organization dedicated to enabling poor, unemployed and under-employed people to become self-sufficient"
NOTE: SEDI is the Canadian pioneer in asset-building approaches --- they introduced the concept of asset-building for the poor to Canada in 1997.

Selected site content:

Independent Living Accounts:
Leaving Homelessness in the Past (PDF - 5.8MB, 91 pages)
June 2009
This report was made possible through a Vital Ideas grant from the Toronto Community Foundation that recognized SEDI’s Independent Living Account (ILA) for its innovative approach in assisting residents of Toronto’s shelter system to save, build life skills and subsequently move onto independent living. This report quantifies the benefit of the ILA model through a return on investment calculation and highlights how an investment of $1 into this program can result in a $2.19 return to society at large within the first year following program graduation. Feedback from current ILA partners was also gathered in an attempt to reflect the strengths and weaknesses of the model and to evaluate the potential of bringing these benefits to scale. This study also explores the potential of expanding the ILA program to a wider audience of people vulnerable to homelessness including newcomers to Canada, urban Aboriginal Peoples, youth, children/youth living in care, people with mental health and/or addiction issues and people who have come into conflict with the law. This report provides evidence to suggest that there is a significant group of homeless individuals that can achieve a positive housing outcome in an effective and efficient manner and through a somewhat limited intervention.

Related links:
* More information about SEDI's Independent Living Accounts
* Independent Living Accounts Final Report - July 2006 (PDF - 667K, 84 pages)
The ILA demonstration was to measure the impacts of providing persons living within transitional housing facilities with a mix of financial and training incentives as a means of facilitating their entry into the mainstream housing and rental markets.
* Research highlights - February 2003 (PDF - 168K, 8 pages)
* SEDI Asset-Building Publications and Reports
[ Complete SEDI Publications list ]

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Financial Inclusion for
Homeless Persons and Those At Risk (PDF - 646K, 58 pages)
Spring 2008
This report emphasizes the need for suitable policy responses and intervention models to improve the financial literacy and financial inclusion for Canadians who are homeless and insecurely housed. It also identifies the necessity for investment in staff training and organizational capacity building among transitional shelters and rent banks to offer intensive and ongoing financial learning opportunities for their clients. Outcomes of the study identify that residents of transitional housing and users of rent banks do not enjoy a full degree of financial inclusion in mainstream banking services. However, they express a strong demand for financial education and for opportunities to practice new financial skills with real money, real financial goals and real financial rewards when they succeed. In addition, housing service providers recognized the importance of financial literacy and financial inclusion among the essential life skills their clients express a need for.
Related link:
* SEDI Financial Capability Publications and Reports

Source:
Social and Enterprise Development Innovations (SEDI)
SEDI is a national nonprofit organization that uses innovative approaches to help low-income Canadians reach self-sufficiency. For over 20 years, SEDI has worked with more than 800 nonprofit and government agencies across Canada to deliver its programs. SEDI's expertise allows it to influence public policy, opening the way for Canadians to enter the social and economic mainstream. The organization's initiatives focus on three areas: financial literacy, asset-building and entrepreneurship.

More selected content from the SEDI website - this link takes you further down on the page you're now reading

Wealth, Low-Wage Work and Welfare:
The Unintended Costs of Provincial Needs-tests (PDF - 604K, 8 pages)
April 2008
"(...)Assets do matter as an important, but so far largely undervalued, factor in well-being. Assets are more than stored-up income, they are stored-up hope, agency and aspiration. To the degree that welfare policy is ultimately concerned with well-being - and we believe it is - far greater attention should be paid to assets." (Excerpt, p.7)
- includes detailed info on what constitutes assets in the Canadian welfare system as well as asset exemption levels in all Canadian jurisdictions and a number of options for provincial/territorial governments wishing to promote greater asset development within their welfare program.

Source:
Asset-building Program
[ Social and Enterprise Development Innovations (SEDI)
SEDI is are a national charitable organization dedicated to enabling poor and unemployed Canadians become self-sufficient. We take a variety of leading-edge social and economic approaches to this goal in areas such as policy development, program management, capacity building, public education, and research.]

SEDI Publications List

Asset-Building (Powerpoint presentation - 498K, 18 pages)
How SEDI plans to offer low-income Canadians new ways of finding economic independence by helping them save and build assets.

Learn$ave
"SEDI has partnered with the Social Research and Demonstration Corporation (SRDC), a leading expert in the field of social research and evaluation, to design and implement learn$ave. This multi-year (planned to 2009) demonstration of Individual Development Accounts for learning is funded by Human Resources Development Canada. The largest demonstration of its kind in the world, learn$ave will reach 4,875 low-income Canadians who volunteer to take part in one of 10 designated locations (cities/counties)across Canada."

Learn$ave FAQs

Home$ave
"(...) Existing government home buyer and tax credit programs are out of reach for low-income earners, and in major cities like Toronto where home prices are so high, there isn’t nearly enough affordable housing to meet the demand. SEDI is piloting a project called that will give low-income Canadians a place to turn. By putting money aside in an Individual Development Account (IDA), participants can build their personal savings and earn a credit for a matching amount. The savings don’t have to be big, as long as they are consistent. Bit by bit, enough money is collected to put a downpayment on a home. SEDI is currently working in partnership with community groups, financial partners and government agencies to get this project started."
More info on Home$ave - April 2002 (small PDF file)

Social Research and Demonstration Corporation (SRDC)
SRDC is a non-profit research organization, created specifically to develop, field test, and rigorously evaluate new programs. SRDC’s two-part mission is to help policymakers and practitioners identify policies and programs that improve the wellbeing of all Canadians, with a special concern for the effects on the disadvantaged, and to raise the standards of evidence that are used in assessing these policies.

Selected site content:

Testing an innovative approach to
promote adult learning for low-income Canadians
News Release
Ottawa, November 2, 2010
The Social Research and Demonstration Corporation (SRDC) released today the final results of learn$ave, a demonstration project to test the effectiveness of individual development accounts (IDAs) as a tool to promote adult learning and small-business start-up for low-income Canadians. Recognizing that people who lack sufficient education and basic skills are exposing themselves to lower earnings and higher risk of unemployment, governments in Canada have been looking for innovative approaches to promote adult education and training among vulnerable populations.

The learn$ave project was conceived by SEDI – Social and Enterprise Development Innovations (www.sedi.org) – based on the asset-building concept of Individual Development Accounts, pioneered in the United States.

The final report:

learn$ave
Individual Development Accounts Project
Final Report (PDF - 2.1MB, 180 pages)
By Norm Leckie, Taylor Shek-Wai Hui, Doug Tattrie,
Jennifer Robson and Jean-Pierre Voyer
October 2010

Report Highlights (PDF - 484K, 8 pages)

-------------------------------------

Encouraging savings to help promote adult learning among low-income Canadians
News Release
March 26, 2009
A new report released today by the Social Research and Demonstration Corporation (SRDC) offers some new results on the effects of the learn$ave project. SRDC is conducting this national demonstration project to test the effectiveness of individual development accounts (IDAs) as a tool to promote adult learning and small-business start-up for low-income Canadians.

Learning to Save, Saving to Learn:
Intermediate Impacts of the Individual Development Accounts Project (PDF - 1.3MB, 88 pages)

learn$ave
- A national demonstration of matched savings accounts for poor families to encourage learning activities and micro-enterprise development

[ All SRDC Publications ]

Early results show low-income Canadians can save for their education
News Release
January 25, 2008
A new report released by SRDC presents the 18-month results of the Individual Development Accounts project learn$ave. The program has so far yielded positive effects on saving and budgeting, as well as participants’ attitudes towards education.

Learning to Save, Saving to Learn: Early Impacts of the learn$ave Individual Development Accounts Project, a new report released by SRDC, presents the 18-month results of learn$ave, a project designed to demonstrate how Individual Development Accounts can encourage low-income adults to save in order to increase their human capital by participating in education or training, or starting a small business.

Download the full report (PDF file - 525K, 115 pages)
January 2008
Download the executive summary (PDF file - 1.9MB, 12 pages)

Find out more about learn$ave
The learn$ave project was conceived and implemented in 2000 by Social and Enterprise Development Innovations (SEDI), and is being funded by Human Resources and Social Development Canada. The evaluation of learn$ave is being conducted by SRDC.

RRSP/RESPs - to buy or not to buy?

By Ellen Roseman of The Toronto Star :

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Low-income parents face RESP barriers
March 27, 2004
Ellen Roseman
"Registered education savings plans will become more popular as a result of new budget measures announced this week. Ottawa plans to help low-income families save for children's college or university by giving grants of up to $2,000. And the existing RESP top-ups will be enhanced. But some low-income parents face barriers that prevent them from saving..."

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Answers to some taxing questions
March 3, 2004

"(...) In a column on Feb. 18 [see below], I talked about how some people — specifically, low-income retirees with RRSP savings of $100,000 or less and no employer pension plan — might be better off taking money out of the plan before age 65. This would be a way to protect income-tested benefits, such as the guaranteed income supplement, from being taxed back because of RRSP withdrawals after they retire. In response to the many questions I received, I'm devoting today's column to a more detailed explanation of how the tax and benefits system works."
.....
"Households whose retirement savings are less than $100,000 (excluding CPP and QPP entitlements) are likely to be GIS recipients. And much, if not all, of the proceeds of their savings will be lost to taxes and the clawback of income-tested benefits."
.....
- includes info about:
--- the effect of RRSPs on entitlement to the Guaranteed income supplement (GIS) under the federal Old Age Security program
--- how retirement income is treated under the personal income tax system
--- why "the GIS nullifies the advantages of RRSPs" for people with lower incomes
--- solution: tax-prepaid savings plans
--- where to obtain more info
Source:

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Cashing out RRSP might make sense
February 18, 2004
Ellen Roseman
"If you believe the ads, every Canadian who is eligible to contribute to an RRSP should do so ASAP. It's your patriotic duty to put the maximum allowed into your registered retirement savings plan each year. Don't fall for the propaganda.
Not everyone should contribute every year. Paying off high-interest debt might be a higher priority. Moreover, many lower-income Canadians who do make RRSP contributions should consider cashing out before they turn 65. By leaving their money in the plan, they could be subject to government clawbacks of social benefits such as the guaranteed income supplement or GIS, prescription drug subsidies, meals on wheels and home care."

Registered Disability Savings Plans (RDSPs)

Registered Disability Savings Plan
The Registered Disability Savings Plan is a savings plan designed specifically for people with disabilities in Canada. The first of its kind in the world, this new tax-deferred savings vehicle will assist families in planning for the long - term financial security of their relatives with disabilities.
- incl. links to * What is it? * How do I qualify * Where do I get it?
[ Registered Disability Savings Plan Blog- "...everything you wanted to know about the RDSP" ]
Source:
Planned Lifetime Advocacy Network
Planned Lifetime Advocacy Network (PLAN) is a non-profit organization, established in 1989 by and for families committed to future planning and securing a good life for their relative with a disability.

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Government launches review of the Registered Disability Savings Plan
News Release
October 21, 2011
The Honourable Jim Flaherty, Minister of Finance, today announced the launch of the Government of Canada’s review of the Registered Disability Savings Plan (RDSP). (...) The Government is inviting stakeholders to comment on RDSPs to ensure that the plans are meeting the needs of Canadians with severe disabilities and their families. “It is important for those who benefit from these plans to give their input, so that RDSPs continue to accurately reflect and address their true needs,” said Minister Flaherty. The RDSP is widely regarded as a major policy innovation and positive development in helping to ensure the long-term financial security of children with severe disabilities. The RDSP was introduced in Budget 2007 and became available in 2008. Budget 2008 announced that the program would be reviewed three years after plans became operational.

These consultations are open to anyone.
The closing date for submissions is December 16, 2011.
Submissions can be emailed to RDSP-REEI@fin.gc.ca

Related Document:

Ensuring the Effectiveness of Registered Disability Savings Plans

Source:
Finance Canada

Provincial/Territorial Updates
Registered Disability Savings Plan (PDF - 360K, 6 pages)
November 2009
In the determination of financial eligibility for needs-tested welfare or disability benefits, each province and territory decides how it will treat assets and income from various sources, both at the point of application and on an ongoing basis. This page provides a current overview of the treatment of the RDSP in all Canadian provinces and territories, and it includes links to the relevant source material in each jurisdiction.

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National Disability Savings advertising campaign launched July 6
July 6, 2009
Human Resources and Skills Development Canada has launched a new advertising campaign about the Registered Disability Savings Plan (RDSP), Canada Disability Savings Grant and Canada Disability Savings Bond, which help Canadians with disabilities and their families save for the future. The campaign consists of two short radio spots (click the above link to access the transcripts and the MP3 audio files) and a one-page poster (see below) referring people to the Disability Savings website.

The Poster:
Helping people with disabilities save for the future
HTML version
PDF version (651K, 1 page)
Complete text:
"The Government of Canada has now made available the Registered Disability Savings Plan (RDSP) to help people with disabilities, under 60 years of age, who are eligible for the Disability Tax Credit. A matching Canada Disability Savings Grant of up to $3,500 per year will be paid on eligible contributions made to an RDSP. The Government of Canada will also contribute a Canada Disability Savings Bond of up to $1,000 per year to the RDSPs of eligible low-and modest-income Canadians, even if no contribution is made.
For more information on eligibility:
Go to Disability Savings:
www.disabilitysavings.gc.ca
Or call 1 800 O-Canada (1-800-622-6232)
TTY users may call 1-800-926-9105."

Source:
Human Resources and Skills Development Canada(HRSDC)

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Government Welcomes National Availability of Registered Disability Savings Plans
and Extends Deadline for Establishing a Plan and Applying for the 2008 Grant and Bond
December 23, 2008
At an event celebrating the national availability of Registered Disability Savings Plans (RDSPs), the Honourable Jim Flaherty, Minister of Finance, and the Honourable Diane Finley, Minister of Human Resources and Skills Development, today announced that the deadline for opening an RDSP, making contributions and applying for the matching Grant and the income-tested Bond for the 2008 contribution year has been extended to March 2, 2009 from December 31, 2008. The 2009 RDSP contribution year will begin March 3, 2009.
Source:
Department of Finance Canada

Related link:

The Working Income Tax Benefit (WITB) and Registered Disability Savings Plan (RDSP):
With the Legislation unveiled, it is time to be heard
By John Stapleton
October 6, 2007
"(...) The Budget bills are important and they deserve discussion and comment. A very small window has been created to allow Canadians to respond. Download the Budget documents and the explanations. Read them carefully and make a submission by October 23, 2007. It is a unique opportunity for your voice to be heard by Members of Parliament, their staff and by the Public Service. "

Presentation to the Standing Committee on Finance (PDF file - 150K, 1 page)
by Susan Pigott and John Stapleton
St. Christopher House
November 6, 2003

.......................................................................
Click on the link above to read the text of the oral presentation to the Committee; click on the link below to read the detailed paper that was submitted by St. Chris House for consideration by the Committee.
.......................................................................

Registered Development Savings Plan (RDSP) : A Proposal for a Tax Prepaid Savings Plan
Exempt from Welfare Restrictions on Assets and Income (PDF file - 319K, 26 pages)
- Pre-Budget Submission to the House of Commons Committee on Finance

RDSP Questions and Answers (PDF file - 75K, 3 pages)

Registered Development Savings Plan (RDSP) as a Vehicle for Asset Accumulation for Low Income Canadians
- abstract of a presentation by John Stapleton, Rick Eagan and Maureen Fair of St. Christopher House at the 11th Canadian Social Welfare Policy Conference in June 2003.

Creating assets for poorest among us (small PDF file)
Toronto Star op-ed
June 20, 2003
"The U.S. and Britain have launched innovative social policies to help those in need.
Canada can learn from them."
Source:
Social and Enterprise Development Innovations

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Punished for their providence (PDF file - 131K, 2 pages)
Ontario non-governmental organization proposing a new tax-sheltered savings plan for low income households
Dec. 3, 2003
Carol Goar
Toronto Star
The proposal, called Registered Development Savings Plan, "...would give poor people a chance to put money into a tax-sheltered account, without losing their eligibility for welfare or incurring financial penalties if they withdrew funds for education, training, medical expenses, starting a business or moving into a new home. It would give families trying to move from welfare to self-sufficiency an economic cushion. Research in the United States has shown that households with savings stand a much better chance of breaking the dependency cycle than those without. Most fundamentally, it would give low-income Canadians the same incentive to invest in their own future as other Canadians."

Caledon Institute of Social Policy

Asset-Based Social Programs: A Critical Analysis of Current Initiatives (PDF - 211K, 34 pages)
By Michael Mendelson
May 2007
This paper was prepared for an Organization of Economic Cooperation and Development (OECD) conference on asset-based strategies and has also been published by the OECD. The paper reviews the current status of asset-based programs, defined as programs intended to assist low-income households to increase their financial assets. Among OECD countries, only Canada, the UK and the US are identified as having such programs. Two programs in Canada, one of which is a randomized control experiment (RCT) with Individual Development Accounts (IDAs), and the other an education savings plan, are reviewed. (...) The paper concludes that an asset-based perspective is an important way to view social programs, but no panacea. Asset-based programs need to be carefully designed and evaluated, as any other type of social program. [ Excerpt from the report's abstract

Social Profits (PDF - 49K, 7 pages)
Sherri Torjman
September 2008
This essay discusses the various dimensions of the social economy - a unique and burgeoning sector of the economy in which business enterprises and economic activity seek not only to generate revenue but also to advance social goals. There are hundreds of thousands of hybrid businesses, also known as social enterprises, which are taking their place on the world stage - and increasingly in stock market portfolios. They try both to generate profit and create social value. They are sometimes referred to as ‘blended value’ organizations because that is precisely what they do. This paper explores their many different forms and puts forward policy proposals to bolster social enterprises within the Canadian economy.

The Key to Tackling Child Poverty:
Income Supports to Meet Their Needs and Assets to Support Their Future
Caledon Commentary
By Jennifer Robson-Haddow
March 2004
"This paper discusses child poverty in Canada in terms of access to savings and assets, as well as income and public services. Middle- and upper-income families have incentives to set aside funds for their child’s future while low-income families are penalized for doing so through welfare needs tests. What’s needed now is a targeted, well-conceived plan for delivering meaningful asset-building opportunities to low-income parents. This paper outlines some of the key features of such a plan, noting progress made in the 2004 federal Budget."
Complete paper (PDF file - 43K, 5 pages)
Related Link:
Social and Enterprise Development Innovations

Asset-Based Social Policies – A "New Idea" Whose Time Has Come?
Andrew Jackson
March 2004
"Asset-building programs invite low-income citizens to participate in forced savings plans by matching their contributions with funds from financial institutions. These programs have enjoyed wide popularity in Canada, the US and the UK over the past few years. Senior economist with the Canadian Labour Congress, Andrew Jackson, questions the significance and long-term benefit of these programs and their possible influence on the development of social policy in Canada."
Complete report (PDF file - 42K, 5 pages)

New Ingredients for the Fiscal Pie
December 2003
Sherri Torjman
"...argues the need for exploring possible methods of expanding the ‘fiscal pie.’ It explores one possible model put forward by PLAN (Planned Lifetime Advocacy Network), a group of parents of children with severe disabilities. The group proposes a combination of private savings and public spending to help develop caring communities. (...) The proposal represents one idea in a range of possible savings and investment mechanisms to expand the fiscal pie – a direction which we should be debating seriously as a nation."
Complete report (PDF file - 19K, 3 pages)

Save more in 2012 with the Tax-Free Savings Account
http://www.fin.gc.ca/n11/11-148-eng.asp
December 30, 2011
The Honourable Jim Flaherty, Minister of Finance, and the Honourable Gail Shea, Minister of National Revenue, today highlighted that, as of January 1, 2012, Canadians will have a new $5,000 of room to invest in their Tax-Free Savings Account (TFSA). (...) The TFSA is a flexible, registered, general-purpose savings vehicle that allows Canadians to earn tax-free investment income. A TFSA can contain a range of investments, similar to those in a Registered Retirement Savings Plan, such as mutual funds, listed securities and guaranteed investment certificates. (...) If you are a Canadian resident aged 18 and older, you can save up to $5,000 every year in a TFSA.
Your contributions to a TFSA are not deductible for income tax purposes but the investment income, including capital gains, earned in your TFSA is not taxed, even when withdrawn. Your unused TFSA contribution room is carried forward and accumulates for future years. For more information on TFSAs, please visit the Canada Revenue Agency website or contact your financial institution.
Source:
Finance Canada
http://www.fin.gc.ca/fin-eng.asp

Registered Retirement Savings Plan (RRSP) vs. Tax-Free Savings Account (TFSA)
Which tax-friendly savings tool will walk away the champion?
http://www.winnipegfreepress.com/business/finance/rrsp---emvs-em--tfsa-135368028.html
December 10 2011
(...)TFSAs and RRSPs both have uses and in many cases, they can be used in tandem. While you're working, for instance, you can contribute to your RRSP and then contribute the refund to a TFSA, creating a tax-free income source for retirement. If you're retired, you can strategically withdraw from your RRSP/RIF at a lower tax rate and invest those withdrawals in a TFSA so the money can grow tax-free and be used without affecting your OAS, GIS or your tax situation.
Source:
Winnipeg Free Press
http://www.winnipegfreepress.com/

TFSA trumps RRSP, report says
By Roma Luciw
http://www.theglobeandmail.com/globe-investor/personal-finance/rrsp/tfsa-trumps-rrsp-report-says/article1446307/
January 27, 2010 (updated to June 14, 2010)
Many Canadians would get more bang for their buck by taking a pass on the registered retirement savings plan and plowing any future savings into a tax-free savings account, says a new report. A C.D. Howe Institute e-brief released Wednesday [see the second next link below], in the thick of RRSP season, is challenging the notion that saving for retirement is best done through a tax-deferred plan like the RRSP.

Saver’s Choice: Comparing the Marginal Effective
Tax Burdens on RRSPs and TFSAs (PDF - 332K, 9 pages)
http://www.cdhowe.org/pdf/ebrief_91.pdf
January 27, 2010
By Alexandre Laurin and Finn Poschman
(...)governments wanting to strengthen incentives for private retirement saving – the so-called third pillar of retirement income – should be thinking of expanding opportunities to save on a tax-prepaid basis. One option would be to allow taxpayers more freedom in allocating saving room between RRSP/RSP accounts and TFSAs, and more room for saving in TFSAs.

Amidst confusion, TFSAs gaining traction
http://business.financialpost.com/2011/11/08/amidst-confusion-tfsas-gaining-traction/
By Jonathan Chevreau
November 8, 2011
In January, Canadians are eligible to make their fourth annual $5,000 contribution to Tax Free Savings Accounts (TFSAs) but an astonishing 37% of us still don’t know what investments are eligible, according to a BMO survey. (...) Just for the record, TFSAs can hold the same investments as RRSPs, including cash, bonds, GICs, mutual funds, stocks and exchange-traded funds (ETFs). (...) Unlike RRSPs, TFSA contributions do not create tax deductions. However, unlike the forced taxable withdrawals of RRIFs, withdrawals of TFSAs are free of tax. And of course, investment income earned inside a TFSA (interest, dividends or capital gains) are never taxed.

Should I Contribute to an RRSP or a TFSA?
http://www.pennysaverblog.com/should-i-contribute-to-an-rrsp-or-a-tfsa/
February 9, 2010
(...) An extremely important advantage to using a TFSA to supplement retirement income is that money in a TFSA will not impact the amount of Canada Pension (CPP) and Old Age Security (OAS) you will receive. However, when you withdraw from an RRSP, you need to add that amount to your income for the year and that can decrease the amount of CPP and OAS that you receive, so it’s not wise to have all your retirement savings with an RRSP.
Source:
Penny Saver Blog
http://www.pennysaverblog.com/

The accompanying explanatory notes provide additional details regarding the proposed legislative amendments.
This consultation ended May 31, 2010.

January 2, 2009
Government helps Canadians maximize their savings with the new Tax-Free Savings Account
January 2, 2009
The Honourable Jim Flaherty, Minister of Finance, the Honourable Jean-Pierre Blackburn, Minister of National Revenue and Minister of State (Agriculture), and Mr. Peter Aceto, President and CEO of ING DIRECT Canada, today welcomed the availability of the new Tax-Free Savings Account (TFSA) introduced by the Government of Canada in the 2008 Budget.

New Tax-Free Savings Accounts Can Help Break Down
Barriers to Saving for Lower-Income Canadians: C.D. Howe Institute
Toronto, Sept. 30, 2008
Lower-income Canadians are entangled in government programs that discourage personal saving, says a study released by the C.D. Howe Institute, and the federal government’s new Tax-Free Savings Accounts (TFSAs) could help correct the problem. In “No Strings Attached: How The Tax-Free Savings Account Can Help Lower-Income Canadians Get Ahead,” authors John Stapleton and Richard Shillington explain how.

No Strings Attached:
How The Tax-Free Savings Account Can Help
Lower-Income Canadians Get Ahead (PDF - 176K, 5 pages)
September 30, 2008
By John Stapleton and Richard Shillington
Lower-income Canadians are entangled in government programs with clawback provisions that discourage or effectively prohibit personal saving. The federal government’s new Tax-Free Savings Accounts (TFSAs) can help correct the problem, provided that provinces and territories refrain from imposing new asset tests and clawbacks that undo savers’ potential gains. Governments should also consider supplementing the savings of poor Canadians, whereby TFSA savings are matched by special funds from government.

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Education investment of $500 for each child born in 2005 or later - Alberta
News Release
February 17, 2004
"Babies born in Alberta in 2005 or later will benefit from a $500 investment by the Alberta government into individual education savings plans. The Alberta Centennial Education Savings Plan Act, which is the first bill introduced in the spring sitting, sets the stage for a new program that will encourage parents to open a Registered Education Savings Plan (RESP) for their child with a $500 grant from the government."

Social Capital Partners (Toronto)
"Social Capital Partners will invest in revenue generating social enterprises that employ populations outside the economic mainstream in Canada. The goal of these social enterprises will be to acquire scale, to eventually exist without external funding, and to create improved social outcomes and financial self-sufficiency for the populations they employ. SCP will be a catalyst for encouraging other creative approaches in the sector aimed at improving social outcomes through the use of innovative funding mechanisms."
- incl. links to : Who We Are - Financing Available - Our Portfolio Organizations - How We Work With Social Entrepreneurs - Measuring Success - Media Box - What We've Learned - Relevant Resources - Acknowledgements - Contact Us

Canadian Co-operative Association (CCA)
"The Canadian Co-operative Association (CCA) is a national umbrella organization representing co-operatives and credit unions. We are a not-for-profit co-operative owned by our members. (...) Our mission is to promote the growth and development of the co-operative sector for the economic and social betterment of communities and people in Canada and internationally."

Many working families in America are facing a savings crisis. Over half of the families with incomes under $24,800 could not remain above the poverty line for a mere three months if they lost their source of income. For these families, both sides of the aisle agree the answer is not just to boost incomes, it’s to help them save for the future and become more financially secure through asset building.

Source:
Spotlight on Poverty and Opportunity
Spotlight on Poverty and Opportunity was launched in October 2007 by major U.S. foundations to foster non-partisan debate during the 2008 campaign season about policy approaches for addressing poverty and opportunity. Today, Spotlight provides a platform for ongoing discussion about how best to address the needs of those who have fallen into poverty during the Great Recession and those who have struggled for generations to move up the economic ladder.

The crisis of microfinance
Once hailed as a solution to poverty, microfinance lenders are criticised for profiting from exploitative usury.
Opinion
By Shashi Tharoor
11 March 2011
The recent ouster of the Nobel Prize-winning Bangladeshi economist Mohammed Yunus as Managing Director of the Grameen Bank, which blazed a trail for microfinance in developing countries, has thrown a spotlight on the crisis engulfing a business that was once seen as a harbinger of hope for millions.
[ See "Banking pioneer challenges sacking", March 3.]
Yunus's tussle with the government of Bangladesh, which had tried to retire him on grounds of age (he is 70) before firing him from his own board, is entangled in his country’s complicated politics. But Bangladeshi President Hasina Wajed’s remark that Yunus had "spent years sucking the blood of the poor" echoes similar charges being made in neighboring India against companies and banks that sought to emulate Grameen.
(...)
Indian regulators are sorting out the tangle of issues that have plunged India’s microfinance industry into crisis. Ironically, none of these problems seems to have befallen Bangladesh’s Grameen Bank, which survives largely on donor grants and sustainable repayments. Yunus’s ouster, it is suggested, has much more to do with his having once expressed political ambitions. But association with a suddenly tarnished industry cannot have helped

[ Writer Shashi Tharoor, a former Indian Minister of State for External Affairs and UN Under- Secretary General, is a member of India’s parliament. ]
Source:
Al Jazeera English

Microfinance struggles to restore its reputation
By Erika Kinetz
March 7, 2011
Long heralded as a way to lift the downtrodden out of poverty, microfinance is under a cloud. The stories of lives being changed by a $27 microloan and picture perfect scenes of smiling women with colorful handlooms, empowered by affordable credit, have been replaced by headlines about borrowers driven to suicide. At best, microfinance seems to be failing to achieve its most noble goal: poverty alleviation. At worst, some lenders are contributing to a cycle of indebtedness and abuse, just like the loan sharks they sought to replace.
Source:
The Boston Globe

India’s poor need help to help themselves
By Sarika Bansal
March 7, 2011
Until recently, microfinance has been the golden child of international development. Microfinance companies would lend small amounts of money to poor women who would, in the ideal scenario, use them to start small businesses. Their interest rates were typically lower than loan sharks’ but still high enough to make a profit. Around the world, development experts believed microfinance was an ideal way to alleviate poverty, a smart way to ‘do good’ while also ‘doing well’. How times have changed
Source:
The Guardian (U.K.)

Gates Foundation pledges $500 million to help the poor save money
Co-chair Melinda Gates and others at a Seattle forum look into cellphone
banking in the developing world and other ways to help some of the world's
poorest families begin much-needed savings accounts.
November 17, 2010
The Bill & Melinda Gates Foundation pledged $500 million Tuesday to help create new banking systems that will reach into the world's most impoverished corners and allow families earning $2 a day or less to begin saving money. After years of promoting microcredit borrowing to help impoverished farmers and bottom-of-the-rung entrepreneurs expand their business opportunities, foundation leaders said it was increasingly apparent that saving, not just credit, is crucial to helping poor families weather crises, pay for schooling and make small investments to expand their incomes.
Source:
Los Angeles Times

Saving: a simple solution to the fight against poverty [Australia]
If we want to end poverty, we’ve got to start championing policies to build families’ assets, writes Gerard Brody
Commentary
09 August 2010
Source:
Australian Policy Online (APO)
APO is a news service and library specialising in Australian public policy reports and articles from academic research centres, think tanks, government and non-government organisations. The site features opinion and commentary pieces, video, audio and web resources focussed on the policy issues facing Australia.
[ About APO ]

Do Assets Help Families Cope with Adverse Events?
By Signe-Mary McKernan et al
December 01, 2009
Abstract (HTML)
Complete brief (PDF - 197K, 12 pages)
Family events, such as a job loss, the onset of health limitations, and a change in family structure, can adversely affect family well-being. The impact of these events may be mitigated if the family holds assets that can be used to maintain consumption. Using the SIPP, this study examines the role of assets in families' economic stability. We find that families in all parts of the income distribution experience material hardship after a negative event. Further, in the aftermath of a negative event, asset-poor families experience more hardship than non-asset-poor families, with assets helping most for low- and middle-income families.
Source:

The Urban Institute
In the mid-1960s, President Johnson saw the need for independent nonpartisan analysis of the problems facing America's cities and their residents. The President created a blue-ribbon commission of civic leaders who recommended chartering a center to do that work. In 1968, the Urban Institute became that center. Today, we analyze policies, evaluate programs, and inform community development to improve social, civic, and economic well-being.

Assets for all? A review of the
Australian Government’s $77 billion support for asset building (PDF - 161K, 14 pages)
By Gerard Brody and Elizabeth McNess
03 January 2010
The authors of this report argue that Australia’s current asset-building policies largely support those who are already well off. Tax concessions on housing and superannuation in particular enable wealthier households to further accumulate assets while doing little for poorer families. Significant reform of the tax and transfer system is required so that policies to encourage asset building will benefit those who need support the most.

Source:
Brotherhood of St Laurence - "Working for an Australia Without Poverty"
Established during the Great Depression, the Brotherhood of St Laurence was the vision and creation of Fr Gerard Tucker, a man who combined his Christian faith with a fierce determination to end social injustice. The Brotherhood has developed into an independent organisation with strong Anglican and community links. Today, we continue to fight for an Australia free of poverty.

Policy Proposals to Reduce Poverty
February 2009
- this five-page document covers a range of asset-building initiatives, along with Community Factors (Reducing Poverty & Recidivism), Education, Family Policy, Health Care, Making Work “Work” and
Strengthening Civil Society.
- includes brief summaries of each proposal, complete white paper policy proposals (PDF links after each section of the white paper), and a press kit.
- recommended reading for all poverty reduction researchers!
Source:
Poverty Forum
The Poverty Forum is made up of 8 teams who, in February 2009, came up with 25 policy proposals addressing domestic poverty.
The Poverty Forum is composed of a select group of leaders and policy experts representing divergent political perspectives but sharing biblical values surrounding God's concern for the poor and a commitment to address poverty.

Source:
Spotlight on Poverty and Opportunity
Spotlight on Poverty and Opportunity is a foundation-led, non-partisan initiative aimed at ensuring that our political leaders take significant actions to reduce poverty and increase opportunity in the United States.

Enabling Families to Weather Emergencies and Develop:
The Role of Assets
By Signe-Mary McKernan, Caroline Ratcliffe
Posted to Web: July 16, 2008
Abstract
Low-wage jobs can be unstable, leaving families struggling to cope with employment gaps and financial emergencies that can strike without warning. About four in five low-income families are "asset poor," lacking enough liquid savings to live for three months at the federal poverty level without earnings. In this essay, McKernan and Ratcliffe suggest a cluster of policies that would improve financial markets and savings opportunities for low-income families across the life cycle.

Enabling Families to Weather Emergencies and Develop:
The Role of Assets (PDF - 285K, 30 pages)
"(...) This essay proposes five complementary types of asset policies that enable families to weather emergencies and promote their long-term development:
1. Increase regulation of small loans, preferably with a savings component, to help families with few assets weather an emergency.
2. Match children’s accounts and EITC savings (when deposited into longer-term savings accounts, such as IDAs, or when used to buy U.S. savings bonds) to incentivize savings, help low-income working families get a toehold in the financial world, and increase financial literacy.
3. Allow incentivized savings accounts to be used for vehicle ownership and set up a national grants program to expand ownership of reliable vehicles.
4. Modify the mortgage interest tax deduction and increase oversight of “nonbanks” so low-income working families receive some of the same incentives and protections that higher-income families receive when buying a home.
5. Promote retirement savings through automatic IRAs to provide low-income working families with easy access to a retirement savings mechanism and thus a more secure retirement."

Two days, two reports, two very different worlds
June 29, 2007
The World Wealth Report 2007 released on Wednesday by Merrill Lynch and Capgemini reports that the very rich (so-called high net worth individuals – HNWI) are getting even richer. And the forecast is the extremely wealthy are going to get even richer due to their dominance of global capital markets, especially commercial real estate and real estate investment trusts. Meanwhile, the Canadian Centre for Policy Alternatives released a detailed research report on Thursday called Rising Profit Shares, Falling Wage Shares which shows that real hourly wages for workers (the people that do things, rather than own things) “have been stagnant for 30 years running”.The two studies make fascinating reading, when set side-by-side...
Source:
The Wellesley Institute Blog
[ The Wellesley Institute ]

Canadian workers’ paycheques in 30-year holding pattern : Study
Press Release
June 28, 2007
OTTAWA – Canadians are working harder and smarter, contributing to a growing economy, but their paycheques have been stagnant for the past 30 years, says a new study by the Canadian Centre for Policy Alternatives.

www.GrowingGap.ca
GrowingGap.ca is a project of the Canadian Centre for Policy Alternatives
"(...)What does the growing gap look like? In 2004, the richest 10% of families raising children earned 82 times more than the poorest 10% -- almost triple the ratio of 1976, when they earned 31 times more. In after-tax terms the gap is at a 30-year high"

Merrill Lynch and Capgemini Release
11th Annual World Wealth Report (PDF file - 55K, 4 pages)
Press Release
27 June 2007
New York, June 27 – Driven by a strong global economy, the wealth of the world’s high net worth individuals (HNWIs1) increased 11.4 percent to US$37.2 trillion in 2006, according to the 11th annual World Wealth Report, released today by Merrill Lynch (NYSE: MER) and Capgemini.

World Wealth Report page
- incl. links to : * Fast Breaking Headlines * World Wealth Report Overview * State of the World's Wealth * HNWI Asset Allocation * Spotlight - New Service Model for HNW Clients * Regional Facts * About the World Wealth Report * Capgemini Wealth Management Offerings * Merrill Lynch Global Private Client * WWR Press Releases * WWR Archive * more...

The Luxembourg Income Study
NEWSLETTER
Volume 17 Number 1 Winter 2007 (PDF file - 225K, 12 pages)
February 2007
Table of contents:
Director’s Column * New Staff * 2006/2007 LIS Summer Workshops * Belgian Workshop Summary * 2006 Visiting Scholars * Update on the Luxembourg Wealth Study * 2006 Staff Presentations & Meetings * Upcoming Local Workshops * Local Advisory Board Meeting Update * Grants for Visiting Scholars * Call for Papers * New Working Papers * In the Press/ Where They’ve Turned Up * Staff Directory
[ Earlier issues of the newsletter - links to 13 issues back to December 1998]

The World Distribution of Household Wealth:
Pioneering Study Shows Richest Two Percent Own Half World Wealth (PDF file - 252K, 14 pages)
Press Release (incl. tables)
5 December 2006
A new study on The World Distribution of Household Wealth by the World Institute for Development Economics Research of the United Nations University (UNU-WIDER) was launched on Tuesday 5 December 2006. According to the study, the richest 2% of adults in the world own more than half of global household wealth. "The most comprehensive study of personal wealth ever undertaken also reports that the richest 1% of adults alone owned 40% of global assets in the year 2000, and that the richest 10% of adults accounted for 85% of the world total. In contrast, the bottom half of the world adult population owned barely 1% of global wealth."

The World Distribution of Household Wealth (PDF file - 1.14MB, 70 pages)
James B. Davies, Susanna Sandstrom, Anthony Shorrocks, and Edward N. Wolff
5 December 2006
Department of Economics
University of Western Ontario

WIDER is part of:
United Nations University (UNU)
- incl. links to : About UNU * UNU System * Environment & Sustainable Development * Peace & Governance * Capacity Development * Online Learning
- UNU Publications

Office of Community Services Assets for Independence - U.S.
The AFI Page features federal programs that give assistance to low-income families so they can accumulate assets and rise out of poverty.
- incl. links to : Home | About Asset Building | Assets for Independence | Apply for Funding | For Grantees | Resources | Contact AFI | Frequently Asked Questions
Assets for Independence
"Assets for Independence (AFI) is a Federal grant program that enables community-based nonprofits and State, local and Tribal government agencies to implement and demonstrate an asset-based approach for giving low-income families help out of poverty."
Source:
Administration for Children and Families
[ U.S. Health and Human Services ]

The Saver's Credit:
Expanding Retirement Savings for Middle- and Lower-Income Americans - U.S.
March 2005
"(Enacted in 2001, the Saver's Credit ... provides a government matching contribution, in the form of a nonrefundable tax credit, for voluntary individual contributions to 401(k)-type plans, IRAs, and similar retirement savings arrangements. Like traditional retirement savings plan subsidies, the Saver's Credit currently provides no benefit for households that owe no federal income tax. However, for households that owe income tax, the effective match rate in the Saver's Credit is higher for those with lower income, the opposite of the incentive structure created by traditional pension tax preferences."

Asset Building for Sustainable Development (Workshop)
Washington, DC
January 14-16, 2004
Workshop Materials - incl. links to the workshop agenda, speaker bios, presentations (Powerpoint and videos) and links to related online content
Sample:
Michael Sherraden: Asset-Based Development Approaches in the U.S.
PowerPoint Presentation (requires Microsoft Powerpoint or compatible software to read) - 202K, 46 slides

Federal Assets Policy Report and Outlook 2004 (PDF file - 71K, 10 pages)
February 19, 2004
By Reid Cramer, Papia Debroy, Leslie Parrish, and Ray Boshara
"The purpose of this annual report is to summarize and assess federal assets policy efforts from last year, in the President’s new Budget, and for the coming session of Congress. To date, there has been no comprehensive analysis of federal policy from an assets perspective. While not intended to be exhaustive, this report identifies almost $320 billion in resources related to asset building included in the Bush Administration’s 2005 Budget. The overwhelming majority of these resources, $302 billion, are catalogued as tax expenditures, while almost $17 billion of discretionary spending is proposed."

AssetBuilding.org - "Ideas, Policies and Programs to Broaden Asset Ownership"

National Center for Children in Poverty
The National Center for Children in Poverty (NCCP) is the nation’s leading public policy center dedicated to promoting the economic security, health, and well-being of America’s low-income families and children.

Asset Poverty and Debt Among Families with Children
By Yumiko Aratani and Michelle Chau
February 2010
HTML version
PDF version (783K, 12 pages)
Increasingly the significance of asset ownership among low-income families is being recognized. Assets such as savings and homeownership are vital components of a family’s economic security, along with income and human and social capital. In this report, we use the term “assets” to refer to financial and economic resources, not including human capital. Unlike labor market earnings, income generated from assets provides a cushion for families in case of job loss, illness, death of a parent, or even natural disaster. This cushion may be especially important for the working poor, whose economic lives can be severely impacted by even short periods of unemployment. Asset ownership can also have long-term consequences for children...

* More than half of American families with children are asset poor based on their financial assets, and in particular, more than two-thirds of African-American families and female-headed families are asset poor.
* The percent of families with debt is increasing.
* Approximately a half or more poor families with children (under 100 percent of FPL) are experiencing debt hardship.
* Less than half of poor families with children (income under 100 percent of FPL) own a bank account.

State Policy Choices: Assets and Access to Public Assistance
October 2003
Fact sheet
Overview of the treatment of family assets in benefit eligibility criteria for major public assistance programs in the U.S.
- incl. asset exemption levels under the following programs : Cash Assistance under Temporary Assistance for Needy Families (TANF) - Food Stamps - Public Health Insurance - Other Government Assistance Programs (child and dependent care tax credits, earned income tax credits, Section 8 housing vouchers, unemployment insurance, and (in most states) Child and Dependent Care Fund (CCDF) subsidies.

Child Trust Fund
"The Chancellor announced his intention to introduce the Child Trust Fund (CTF) in the April 2003 Budget. The CTF is part of the Government's strategy for saving and asset ownership."
- incl. links to further CTF resources

The Child Trust Fund and Saving Gateway
"The two most high profile asset-based welfare policies are the Saving Gateway and Child Trust Fund."
- incl. links to five documents pertaining to these two initiatives

Asset Building and the Escape from Poverty: A New Welfare Policy Debate
November 2003
"Governments in developed countries have long used, directly or indirectly through their tax systems, policies that subsidise or otherwise encourage the population at large to acquire assets such as financial savings, home ownership, retirement funds, education (human capital) or business capital. (...) This book establishes the context for a fruitful debate on the merits and demerits of asset building for the poor by setting out the basic ideas involved in asset-building programmes and proposals. It also outlines the social policy advantages that their proponents claim, and documents what the existing programmes and demonstration projects look like."
- incl. info about existing asset-building developments in the U.S., the U.K, Canada, Mexico, Ireland, and more
Source:
Organisation for Economic Co-operation and Development

Asset-Based Social Policies

Politiques sociales fondées sur l'acquisition d'actifs