Canada has Lowest Proportion of Seniors In OECD

Although our population is aging we have one of the lowest proportions of seniors in OECD (Organization for Economic Development and Co-operation) countries. In 2005 seniors comprised 13.5% of our population compared to 16% in the United Kingdom, 16.6% in France and 20.2% in Germany. Interestingly, the U.S. had only 12.8% of its population represented by seniors. The baby boom will increase these percentages in the years to come and life expectancy will continue to increase.

Preparation for this senior population explosion is important, particularly because the value of pension savings declined during the financial crisis in 2008 ñ no surprise there. Employer-sponsored pension plans have the lion's share of these assets.

This is particularly true for advisors and their senior clients in the Maritimes, which has the largest proportion of seniors, while Alberta has the smallest, due in no small part to the out-migration of young workers.

More seniors are working beyond the traditional age of retirement and median after-tax incomes have increased significantly since 1982.

In the general population, educated Canadians tend to have higher incomes. This is also true among seniors but not to the same degree because our income security programs (Old Age Security and Guaranteed Income Supplement) tend to level the playing field.

Source: Statistics Canada, Canada Yearbook 2010.

ADDITIONAL EDUCATIONAL RESOURCES: Tax Efficient Retirement Income Planning Course