Finding shows more older adults are living in poverty than Canada’s official numbers suggest

The official rate of Canadians 65 and older living in poverty is six per cent.

 

But the number could be more than double that, new research warns.

 

Fourteen per cent of Canadians in that age demographic are living in “poverty-level conditions,” according to the “Ageing in Canada” survey released today by the National Institute on Ageing and Environics Institute for Survey Research.

 

The National Institute on Ageing (NIA) surveyed 5,875 Canadians over the age of 50 on their social well-being, health and financial security.

 

Concerned that the official poverty rate calculation does not sufficiently consider older adults, the NIA’s research used the “material deprivation index,” a methodology recently developed by Food Bank Canada as an updated way of measuring poverty among Canadians of all ages. A similar index has been used in Europe for years.

“With affordability challenges persisting in 2024, understanding the financial security of aging Canadians is more important than ever,” the NIA report said.

 

Many of the respondents reported stable finances and said their income is “good enough” to allow for savings, the report said.

 

But the survey also found that the cohort aged 50 to 64 is most impacted by financial stress.

 

The NIA’s report said 29 per cent in this age group likely had a poverty-level standard of living, which means they could not afford two or more essential items on the index. Those items include dental care, adequate heating or an unexpected expense, all leading to financial challenges when the rise in the cost of living is already sapping limited funds.

 

“This is a pretty vulnerable population,” said Dr. Samir Sinha, the NIA’s director of health policy research.

 

Sinha said many in this younger demographic are not old enough to collect the federal benefits such as the Canada Pension Plan, Old Age Security or the Guaranteed Income Supplement for those on a very low income.

 

There are other challenges, such as job losses, Sinha said.

 

“And then it’s very hard to find new employment as an older worker, certainly at the payment levels that they were receiving before.”

 

Canada’s official poverty numbers are calculated by the “Market Basket Measure,” which looks at income based on items needed for a modest lifestyle, based on region.

 

A government review of the MBM heard from critics who say it does not consider the needs specific to older Canadians, many of whom have health concerns or disabilities that require significant costs not covered by provincial medicare.

 

Maytree, a charitable organization that focuses on poverty research, has called on the federal government to create a “seniors specific” measurement.

 

Maytree has said the official measure — designed for a family of four — does not consider the growing challenges of aging, with rising health-care costs, fewer workplace pensions that pay benefits for life and a decline in home ownership that leaves many older adults struggling with rising rent.

 

Maytree, alongside Environics and the Maple Leaf Centre for Food Security, helped Food Bank Canada develop the “material deprivation index” (MDI).

 

The MDI is based on the ability to pay for 11 goods and services that “most people consider necessary for maintaining an acceptable standard of living in Canada,” the NIA report said.

 

Food Bank Canada’s first survey on the index, released in 2024, found Canadians aged 65 and older had lower levels of poverty when compared to younger families. However, the overall MDI rates for older adults, at 11 per cent, were higher than those calculated by the federal government. Older Canadians living alone, according to the report, had a poverty rate of 17.4 per cent.

 

In the NIA survey, all respondents were asked the same questions related to financial well-being. They included, “If you had an unexpected expense today of $500, could you cover this from your own resources?” Or, “Are you currently able to pay your bills on time?”

 

It also asked all respondents whether they could buy properly fitted shoes or had the money to spend a “small amount” each week on oneself.

 

The material deprivation index, the report said, should be used as an additional perspective for policymakers.

Overall, the survey found that most respondents aged 50 and older are doing well but many are still struggling with social isolation and loneliness.

 

Accessing health care is a problem for many, the survey found. One in ten “could rarely or never access the services and treatments they needed” with difficulty getting appointments or cancelled and delayed treatments as the main concern.

 

Ultimately, Sinha said, the survey results highlight the connection between poverty and health.

 

“It really reminds us of the things that are going to constrain aging well,” he said.

 

“If you’re financially limited, it’s hard to stay healthy and manage your chronic diseases. If you cannot manage your diseases and stay healthy, it’s hard to stay gainfully employed, to enjoy good health and well-being.”

 

 

 

 

This article was first reported by The Star