Nov. 3: BEST FROM THE BLOGOSPHERE

November 3, 2025

Tidal wave of boomer retirements about to hit?

Writing in the Financial Post, Pamela Heaven warns us all to brace ourselves for the oncoming, peak wave of boomer retirements – and its impact on the economy.

“For the past 15 years since the first boomers turned 65, an estimated 5.2 million people have left the workforce. Within the next few years, 2.7 million more Canadians, now between the ages of 60 and 64, are likely to join them,” she writes.

That’s going to have a big impact on the labour market, the article continues. In the article, RBC assistant chief economist Cynthia Leach observes that the outflow of experienced workers will have a significant effect. “Canada needs to accept that, viewed from the supply side, it’s headed toward an even structurally tighter labour market within a few years,” she states in the article.

One reason why boomer retirements will have a labour force impact is that the country’s population is no longer growing at a fast clip, the article continues.

There’s been a “clampdown” on immigration, and as well, the article notes, “Statistics Canada reported that the country’s population growth hasn’t been this slow since the pandemic lockdown and RBC expects near-zero growth in 2026 and 2027 under the government’s `drastically lower targets.’”

What, the article asks, “does this mean for the economy?”

“Some industries and regions will be hit harder by labour supply pressures than others. Nine of 21 sectors have more than a quarter of employees now over 55, a share that tops the overall average of 21 per cent. In fishing and agriculture, the percentage of workers over 55 rises to 40 per cent,” Heaven writes.

“Regionally, British Columbia, Quebec and the Atlantic provinces have a higher share of older people,” she adds.

So, less workers available to fill jobs vacated by retiring boomers, and less immigration – are there other impacts from boomer retirements? Let’s read on.

“As people age annual health care costs to the state rise, from about $3,400 at age 40 to $10,000 at 70 and more than $36,000 at 90,” writes Heaven, quoting data from RBC. “So far, (RBC) estimates Canada has only seen about 11 per cent of the additional health care costs of the aging baby boomers — with the lion’s share to come.”

Heaven then explains that there will soon be fewer workers “to shoulder this burden” of rising healthcare costs. She refers to this as a “rising seniors’ dependency ratio.”

Thankfully, the article ends with talk of solutions to the problem of boomers departing the workforce.

“There are ways to bolster the workforce domestically such as training, better labour mobility and recruiting from demographic groups with lower participation rates,” Heaven writes, quoting from Leach. “But the biggest gains could be achieved by increasing productivity and capital intensity in the overall economy,” she concludes.

A route to having more independence in retirement is to have your own savings – and income from those savings. Be sure to sign up for any retirement program offered at your workplace.

If there isn’t such a program, then the Saskatchewan Pension Plan may be just the ticket for you. It’s a do-it-yourself, voluntary defined contribution program – you decide how much you want to save, or transfer in from your registered retirement savings plan. SPP does the rest, investing your precious savings loonies in a low-cost, professionally managed pooled fund.

Uniquely, SPP offers an in-plan annuity option – you can convert some or all of your savings to an annuity without having to move your money out. Another option that’s available is the more flexible Variable Benefit option.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Financial Post

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