As the Baby Boomer generation continues to slowly shift into retirement, the demographic change underscores significant implications – both for this population as well as the country’s economy. And while, according to Statistics Canada, by 2030 the last of this generation will turn 65, in the past few years, it has surpassed the number of people aged 0 to 14. Seniors are the fastest-growing group in Canada.

This irregularity in age distribution, like any major population changes of its kind, brings about not only economic challenges but also opportunities. Viewed under the right light, that is.

A recent report from the National Institute on Ageing (NIA), in collaboration with the Environics Institute for Survey Research, entitled the 2023 NIA Ageing in Canada Survey offers a comprehensive look at the impact of Canada’s ageing population. The survey, which included 5,875 participants, is the largest of its kind in the country and represents the first follow-up analysis since its initial iteration last year.

The report does a deep dive into the views and experiences of Canadians aged 50 and older across three crucial dimensions that are integral to ageing well: social well-being, financial security, and health and independence. The data collected provides valuable insights into the experiences and future outlook of older Canadians as they navigate the process of becoming seniors. And while overall, it shows that they are faring well and are positive about growing older, there are key findings to keep in mind.

On the one hand, the demand for healthcare and pension benefits is expected to rise, placing strain on public resources. Increased healthcare costs, coupled with a potentially reduced workforce due to retirements, may impact the country’s financial landscape. Additionally, the pension system will face pressures as a larger number of retirees draw on its funds.

On the other hand, an ageing population also presents economic opportunities. Older people often possess valuable skills and experience that they can continue to share, contributing to the knowledge economy. With the right policies and initiatives, Canada can harness the potential of its seniors and promote their productivity and inclusion.

The NIA report, after examining the financial health of the respondents by measuring the perceived adequacy of household income, reveals that three-quarters of them consider their income to be sufficient. Only a third believe it’s adequate for purposes of retaining savings. Retirement readiness remains a challenge, with only 35% of working Canadians in that age bracket feeling financially prepared to retire when they want to. Future financial concerns, including the impact of the recession and worries about running out of money, are prevalent, indicating ongoing financial apprehensions within this specific demographic.

Addressing the economic impact of an aging population requires a comprehensive approach, however, involving adjustments to social policies – how we view the elderly, how we understand their needs, how we market to them – and workforce strategies. Proactive measures, such as promoting age-friendly workplaces and other professional settings and encouraging the additional education of seniors, can help mitigate potential challenges. After all, according to a recent release of ADP Canada’s Happiness@Work Index, Baby Boomers are the happiest generation in the workplace, reporting an average happiness level of 7.1 on a scale of one to 10.

When it comes to Canada’s economy, over the past year, many, regardless of generational realities, have faced heightened financial strains. Increased borrowing rates, heightened market instability and elevated inflation have contributed to an escalating cost of living, compounding the economic difficulties brought about by the ongoing repercussions of the pandemic. And so, given the current climate, ensuring the financial security of Canada’s aging population has become more crucial than ever. The population, it bares reminding, is projected to make up a quarter of Canada by 2068.