The Canada Emergency Response Benefit (CERB) is officially in the memory banks of Canadians. CERB recipients who still need temporary income support shouldn’t feel fearful. The government is ushering the CERB replacement through the simplified Employment Insurance (EI) program.
Effective September 27, 2020, access to EI is easier. To qualify, you only need 120 insured hours. The one-time credit of 300 insured hours guarantees you meet the minimum requirement of 420 hours.
First way
The minimum amount you will receive per week is $500 before taxes, up to at least 26 weeks. Hence, it’s a 100% replacement of the $2,000 monthly CRA CERB. It’s also possible to receive the EI regular benefits for up to 45 weeks. The unemployment rate in your region at the filing date and amount of accumulated insurable hours in the last 52 weeks will dictate the duration.
If you don’t qualify for EI or are unable to fully return to work due to COVID-19 related reasons, you won’t be left out. Three new temporary recovery benefits introduced by Bill C-4 will be available and will be effective from September 27, 2020, to September 25, 2021.
The Canada Recovery Benefit (CRB) provides a benefit of $500 weekly benefit to workers directly affected by COVID-19. It extends to qualifying individuals whose income has dropped by at least 50% due to COVID-19.
The Canada Recovery Sickness Benefit (CRSB-Sickness) may be available to qualifying individuals who can’t work due to certain conditions that make them more susceptible or vulnerable to COVID-19. If you need to care for a child or family member due to COVID-19, one household member can apply for the Canada Recovery Caregiving Benefit (CRCB-Caregiving).
The CRSB-Sickness and CRCB-Caregiving benefits are available to qualifying individuals who are can’t work for at least 50% of their regular hours in a given week. The amount is the same as the CRB.
Second way
The second way Canadians can replace CERB is through dividend stocks. If you can save money and have no immediate need for it, consider investing in Enbridge (TSX: ENB)(NYSE: ENB). The largest energy infrastructure company in North America is a reliable income provider.
Similarly, the dividend yield is an ultra-high 8.44%. You need to invest $284,500 to produce an income equivalent to the $2,000 monthly CERB. However, you can start small and gradually increase your holdings. Regardless of the amount, your capital will double in eight-and-a-half years.
Enbridge is also Canada’s largest natural gas distributor. This $78.55 billion energy infrastructure giant collect, transport, process and store oil and gas. The company serves 3.7 million customers in Ontario, Quebec, New Brunswick, and New York.
Its vast natural gas and NGL pipeline network stretches for 192,000 miles and traversing across North America and the Gulf of Mexico.
Investors expected dividends from energy stocks to collapse in 2020. On the contrary, income seekers ran to the safety of Enbridge. The dividends are safe because this top-tier energy stock has diversified cash flow sources, regulated gas distribution operations, and financial strength.
Lasting income is better
The retooled EI system is the new lifeline and temporary support for Canadians. However, if your finances allow, dividend stocks can provide a more lasting income.
