One of the biggest expenses for anyone is transportation. Some people pay up to $1,000/month for transportation, car, insurance, maintenance, gas, parking, etc.
I rely a lot on public transportation and for me, I pay about $70 per month between car sharing service and public transportation. But for seniors, transportation is now FREE in the island of Montreal.
I spoke before about why I gave up my car and my distaste for people who drive big gas guzzler, polluter SUVs in the following articles: 1. Dump your car and SUVs are a nuisance to society.
If you give up your car you will be moving that much faster towards financial independence and you will be reducing the harm towards the environment. But I am digressing.
Free transportation for seniors
Our major, Valerie Plante, announced in Twitter that as of July 1, 2023, public transit will be free for seniors across the island of Montreal.
Dès juillet 2023, le transport collectif sera gratuit pour les 65+ ans à Montréal!
— Valérie Plante (@Val_Plante) November 23, 2022
Une mesure qui permet aux personnes aînées de participer pleinement à la vie en société et à la transition écologique. Et c’est un bon moyen de lutter contre l’inflation!#polmtl @stm_nouvelles pic.twitter.com/2RxaaPRDeI
The measure will be announced in next week’s municipal budget.
If you’re a senior travelling within the agglomeration of Montreal, you can ride free as of this summer.
Off-island areas like Laval, Longueuil, and the North and South Shores have some conditions.
Seniors already ride the bus for free throughout the day in Laval and during off-peak hours in Longueuil.
The free fares are not expected to result in an overcrowded system, since most seniors take transit during off-peak hours. Seniors make up roughly 13 per cent of those who take transit in Montreal.
Free transportation for kids
This is the second time that Valerie Plante has negotiated a break on fares for those with lower means in recent years. In the 2021 budget, the city reduced fares for seniors by 70 per cent and made it free for children under 12 to ride, as long as they are accompanied by a person 14 or older.
How does free transportation for seniors impact the rest of us
I will start with the negative:
Free is never FREE. Someone has to be paying for this. The city doesn’t make money. The city collects taxes from citizens and redistributes those taxes as it sees fit. Some one’s taxes is going to be higher. I assume that Valerie Plante will explain in next week’s municipal budget who is going to get stuck with the bill.
On the positive side,
From the citizen’s of Montreal point of view
- there will be less congestion on our roads,
- our air will be better,
- there will be less need for ugly parking spaces
- there will more space for pedestrian streets
- there will be more space for cycling path
From the individual’s point of view and their personal finances
- When we calculate our retirement budget, transportation is a big line item. Now, some people will be able to delete that line completely.
- If take public transportation you will need to accumulate less money, and thus maybe you can retire earlier.
- If you were considering having a garage for car, now you can reduce that expense as well.
Overall, I don’t know who will be stuck with the final bill, but for the rest of the population, it seems like a big win.
Update Nov. 29 2022
As predicted, here is an increase in municipal taxes. There is no free lunch. The government extorts from Peter to give to Paul.
Taxes foncières résidentielles | Les Montréalais devront payer 4,1 % de plus https://t.co/Izx95uabXj
— La Presse (@LP_LaPresse) November 29, 2022
Other personal finance blog posts
- I gave up my car because of parking tickets
- How to become Financially Independent
- The end of the year is coming. Are you updating your will?