Aging in poverty in Canada

The National Advisory Council on Aging (NACA) publication series, Seniors on the margins, looks at the situation of those Canadian seniors who, because they are not part of the majority, may not have access to the resources needed to age in comfort and health. [...] For the purposes of this document, NACA has adopted the low income cut-off (LICO) as an indicator of economic vulnerability.2 The use of the before-tax cut-off versus the after-tax cut-off has been the subject of much controversy over the years. [...] Aging in poverty in Canada 9 In 1998, 9% of seniors lived under the LICO:10 • 18% of women over 80 years of age; • 38% of women who were separated; 25% of divorced women; 17% of widows; and 16% of single women;11 • 22% of tenants; • approximately 10% of handicapped seniors; • 13% of immigrants and 22% of seniors from visible minorities. [...] Seniors’ sources of income • OAS and CPP/QPP are the main source of income for over two-thirds of seniors; • on average, 29% of the total income of seniors is derived from private employers’ pensions and RRSPs, 27% from OAS (including GIS), and 20% from CPP/QPP; • CPP/QPP benefits replace approximately 25% of income earned for which a worker contributed to CPP/QPP; • 35% of seniors receive GIS; • [...] In 2003, an unattached person who only received OAS and the GIS had an annual income of $12,031 – an amount inferior to the LICO in urban areas, where the cost of living is higher.20 In its 2005 Budget, the federal government announced an increase in the GIS, but this modest increase is not enough.21 In order to account for the varying costs of living in Canada, NACA reiterates the recommendation