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Percentage of Canadian population comprised of persons aged 65 or older, 1921 to 2005 and projections to 2056 (Sources: Statistics Canada, Censuses of Canada; Population projections for Canada, provinces and territories.)

In Depth

Seniors

A greying population: What does it mean for Canada?

February 28, 2007

The population of Canadian seniors is growing, and not just in size. In A Portrait of Seniors in Canada, Statistics Canada outlines a new breed of Canadian seniors: They're living longer; they're also more active, more tech-savvy and financially better off. As well, there are many more of them than ever before.

The notable statistic emerging from the report is that the number of Canadian seniors nearly doubled between 1981 and 2005, jumping to 4.2 million from 2.4 million, meaning seniors now make up 13 per cent of the total population. As the baby boomers begin to move into that demographic, Canada's greying population will keep on growing.

The report goes into great detail on how seniors fare in Canada these days. But what does it mean for the future?

"The aging of the population is inevitable, so whether it's good or bad or whatever you think the effects are, it's going to happen and happen in a very significant way in the next couple of decades," says Byron Spencer, an economist at McMaster University in Hamilton. "There's nothing that can done about it. It's important to recognize that."

Financial security

An encouraging statistic to emerge from the report is that the number of low-income seniors has dropped significantly in every province. P.E.I. and Saskatchewan fared especially well. In 1980, 34 per cent of seniors in P.E.I. were classified as low income, but that number had dropped to 4.5 per cent by 2003. The number of low-income seniors in Saskatchewan plummeted in that period, dropping to 1.7 per cent from 22 per cent. The average total income rose 18 per cent in that time.

The two provinces with the highest proportion of low-income seniors are B.C. and Quebec, with just over 10 per cent falling into that category on an after-tax basis.

Richard Shillington, a freelance statistician and consultant in Ottawa, says seniors can thank the government for that improvement to their fortunes, particularly because of the maturation of the Canada Pension Plan.

"More and more people are retiring having contributed to CPP for a significant number of years," he says. "That is having a substantial impact and that's a great success. Give the government full credit for the CPP bringing down the poverty rate of seniors."

These changes should help when it comes to an elderly population maintaining good nutrition and an active lifestyle in the years ahead.

Statistics Canada also found increases in the number of seniors in the paid labour force, a number that will go up as the baby boomers move into their 60s. According to the report, just fewer than 320,000 Canadians aged 65 and older participated in the labour force in 2005. This suggests the possibility of many seniors continuing to work past 65, using that possibly extra income for travel or other amenities.

As for seniors crowding out those entering the work force, Spencer says that shouldn't be an issue.

"The unemployment rate is not determined at all by the number of people who are trying to find jobs," he points out. "The unemployment rate was very low, for example, when the baby boomers started flooding into the labour market and there was very rapid growth in the labour force during that period and low unemployment."

Overburdened health care?

Another question raised by Canada's aging population is how well the national health care system can handle a bigger senior population. Typically, seniors require more medical attention that other demographics. Will more seniors lead to a strain on the system?

Paul Grootendorst, a professor of health economics at the University of Toronto, says such concerns are unfounded.

"A lot of the hysteria about the aging population has been hijacked by people with a hidden interest in dismantling medicare," he says. These people are raising fears about increased usage to argue for more privatized health care, he argues.

But from a financial standpoint, he says, the aging population should have little impact on the health care system, a point with which McMaster's Spencer agrees.

"It's really important to recognize that historically, in the last few decades, when health care costs have been rising very quickly, that the increase in costs has been in only very small measure attributable to the aging population," Spencer says. "It's been almost entirely attributable to governments choosing to spend more on health care and I think that's really important to understand."

Time to redefine 'senior'

Overall, Statistics Canada paints a more dynamic picture of seniors than many Canadians might expect.

The report shows that significant numbers of seniors are physically active and involved in groups or activities outside the home. The number of internet users has jumped sevenfold in the last decade. As the demographic continues to change, Spencer believes that it's time to redefine what "senior" means.

"It makes a great deal of sense to change the age at which someone is viewed as being 'old' or 'a senior' or whatever term you want to use," he says. "Life expectancy is going up so rapidly and people are, on average, much healthier at their age than they used to be, so the concept of being old ought to change.

"People tend to think of 65 as the mark of turning old and it really doesn't make sense anymore."

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