Mar 10: BEST FROM THE BLOGOSPHERE

March 10, 2025

Fourteen per cent of Canadians over 65 have “poverty-level” living standard: NIA

A new study from the National Institute on Ageing (NIA) suggests a sizeable number of Canadian seniors have a “poverty-level” living standard.

The NIA’s findings were the subject of a Wealth Professional article recently, written by Steve Randall.

The article notes that our aging citizens are “facing challenging times, with many dogged by poor finances, weak social connections, and a lack of retirement savings.”

The NIA study, the article continues, found three “key areas of concern” for over 50s in Canada, including “well-being, financial security and health.”

Only 32 per cent of those surveyed reported having strong social connections, with 36 saying their connections are weak, the article reports.

“While 39 per cent of respondents said they engage in social and recreational activities at least weekly, those with poor finances are more likely to be among the 20 per cent who said they engage in these activities only once a month or the 23 per cent who do so rarely,” Wealth Professional reports.

The research indicated that “long-term financial security” among Canadians over 50 was also pretty weak, the article continues.

“Just one in three think they will be able to retire when they want to, with one in four having just $5,000 or less saved, despite working,” the article reports.

A startling finding, Wealth Professional reports, is that “a new measure called the Material Deprivation Index reveals that one in five older Canadians has a poverty-level standard of living including 14 per cent of over 65s.”

A quarter of those surveyed said “their income is not enough for their current or long-term needs, especially among 50-64s without a workplace pension and those with fair or poor health.”

While most of the respondents said they were able to access healthcare, only 48 per cent of those “who said they need home-based services were able to access them,” the article adds. A whopping 80 per cent want to “age in their own home,” with only three per cent showing a preference for moving into a long-term care facility, Wealth Professional notes.

“As Canada’s population ages, this research underscores the urgent need for bold, evidence-based action to combat ageism, strengthen financial security and ensure equitable access to health and social supports. Now is the time for policymakers and communities to come together to build a Canada where older adults feel valued, included, supported and better prepared to age with confidence,” NIA’s Alyssa Brierly tells Wealth Professional.

Last year, the plight of seniors facing a low-income retirement was covered off in an interview Save with SPP did with B.C.’s Carole Fawcett, one of the backers of the Tin Cup lobby group. You can see that article on their website here.

The research suggests that those without a workplace pension plan tend to have more income problems than those who do.

If you can join a retirement savings plan at work, be sure to sign up and contribute to the max. If there isn’t such a plan at your workplace, no problem – you can join the Saskatchewan Pension Plan, a voluntary defined contribution plan that’s open to any Canadian with registered retirement savings plan room. With SPP, you decide how much you want to contribute, and SPP can do the rest. You can automate your contributions, which will then be invested in the low-cost, professionally managed, pooled SPP fund. At retirement, you can opt for the security of a lifetime monthly annuity payment, or the more flexible Variable Benefit plan.

Check out SPP today!

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Wealth Professional

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