Canada is getting older

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In 2017, the number of senior citizens (people 65 and older) in Canada was larger than the number of children (people 14 and younger).

Part of that is explained by the fact that the Baby Boom, one of the largest generations in history, is growing older.

But there’s more in play.

Fewer Canadians are having children, which narrows the gap between the old and the young. Immigration tends to bring in people between those two age groups, but they then need to settle and get jobs or restart their careers before having their own kids.

Experts who study population trends base a lot of their research on what’s called the Median Age – a number representing an age at which half the population is older, and half is younger.

In 1984, Canada’s median age was 30.6 years, but by 2017 it was 40.6 years. That’s rapid change.

What’s more, the number of Canadians over age 100 is rising quickly; from 11 out of every 100,000 people in 2001 to 18 out of every 100,000 people in 2017.

These population trends help bring the value of the Canada Pension Plan (CPP) and Old Age Security (OAS) into focus.

Unlike some annuities or other private-pension options that time out after a certain number of years, CPP and OAS pay for life.

Since statistics show more Canadians will be living longer, the CPP and OAS will become increasingly important to people’s future quality of life.

 

CPP Investment Board, Investing Today for Your Tomorrow.

The content on this site is provided for information purposes only. CPPIB is not a financial advisor, and the content on this site does not provide financial advice. Every person’s financial planning needs are different. For advice on how you should prepare financially for retirement, please consult a credentialed professional financial advisor.

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