Canadians are voting in a federal election on April 28, and questions about how to deal with the United States and make Canada’s economy more resilient are dominating public discourse.
The housing crisis, immigration policy and health-care system deficiencies are other top-of-mind concerns. But one issue we likely won’t hear much about from politicians is a trend that’s quietly shaping all of these issues: an aging population.
Canada’s overall population is older than ever. Between 2016 and 2021, the portion of the population aged 65 and older grew to seven million people. By 2040, it’s projected that close to one-quarter of Canadians will be over the age of 65.
That means policymakers need to think more proactively about how they can transform Canada’s existing policies to address the needs of an aging population.
A new report we’ve published at the CSA Public Policy Centre outlines policy pathways for federal and provincial governments to consider as 2040 approaches.
It’s time for Canadians to reimagine where we live as we grow older, transform our understanding of health and health-care services and take a whole-of-society approach to advance cultural change around the experience of aging.
Precarious retirement
As more baby boomers retire in the years ahead, labour productivity is expected to decline and the income tax base that supports core public services will shrink.
At the same time, significant investments will be needed for our already strained health-care system to meet the needs of older adults living with more chronic conditions. The average cost of delivering health care is about $12,000 per person per year for those over 65, compared to only $2,700 for those under 65.
Similarly, in the face of a years-long decline in the quality of Canada’s long-term care system and the preference of Canadians to age at home, a policy shift towards aging-in-place has become a priority.
However, this raises important questions about social isolation, accessibility of Canada’s built environment, suitability of housing options on the market as well as the availability and affordability of necessary services.
Recent polling shows that 95 per cent of Canadians over 45 believe that aging-in-place would maintain their independence, comfort and dignity. Yet only 12 per cent report having the funds available to receive adequate home care.
In the absence of thoughtful policy reform, there is potential for significant disparities in health outcomes, financial security and social inclusion among older adults in the years to come.
Ensuring intergenerational equity
There is a perception that baby boomers are heading into a comfortable retirement with robust pensions and opportunities for leisure. While this may be the case for those who have accumulated or inherited wealth, others are facing the risk of poverty and homelessness.
Data indicates that around 30 per cent of people using shelters across Canada are aged 50 or older, with many others unsheltered, living outdoors or experiencing hidden homelessness.
With limited resources, governments will be challenged to meet the needs of older Canadians while ensuring younger Canadians can also thrive. Young Canadians are facing a housing market that feels out of reach and many are delaying the decision to start a family due to high costs of living.
Fifty-five per cent of Canadians aged 25-44 report that rising prices are greatly affecting their ability to meet day-to-day expenses. Balancing the needs of different generations will require new ways of thinking, strategic investments and systemic cultural change.
A path forward
This means that, in the face of difficult decisions, resources should be allocated to those who need them most. For example, there have been calls to improve the equity of Old Age Security (OAS) — which is expected to cost $96 billion annually by 2027 — and lower income thresholds for eligibility.
Unlike the Guaranteed Income Supplement, which is targeted to low-income Canadians over the age of 65, households with an annual income more than $300,000 may still be eligible for OAS payments.
Similarly, vouchers could be made available to help Canadians pay for costs such as long-term care or home care services. Eligibility for programs like this should be tested against both income and wealth — access to home equity can be a significant factor in one’s ability to maintain their standard of living in retirement.
To ensure equitable outcomes, these decisions should also be guided by meaningful engagement with diverse voices around the table, including those from older and younger generations and different lived experiences. Intergenerational dialogue can help different age groups understand each other’s challenges, collaborate on solutions and ultimately work towards solidarity and a much-needed reimagination of what it means to grow older.
As Canadians prepare to head to the polls, we should all consider the future we want to see for ourselves and our communities as we age. Making strategic investments to improve the quality of life for older Canadians today will also lay the foundation for future generations.
Sunil Johal is the Vice-President, Public Policy with the CSA Group and leads the CSA Public Policy Centre.
