How to support retirement in a super-aged Canada

How do Canadians really feel about getting older? Explore surprising results from the annual Ageing in Canada Survey, released by the National Institute on Ageing, with support from Manulife, and discover three ways to help members embrace longevity. 

Like many developed nations around the world, Canada’s population is aging rapidly and will soon become a super-aged society. Although there are different measures, nations with significant older populations are considered super-aged. Right now, 19% of Canadians are over 65. In about 10 years, that number is expected to jump to almost one-quarter of the population, and in just over two decades, there’s predicted to be nearly 2.5 million Canadians over 85–that’s higher than the number of 15 to 19-year-olds right now.

This longevity creates a fundamental challenge for the retirement industry. This critical topic is explored in the annual “Ageing in Canada Survey” released by The National Institute on Ageing (NIA), with support from Manulife. This partnership builds on Manulife’s commitment to longevity preparedness and the launch of the Longevity Institute,  a global platform driving action to help people live longer, healthier, and more financially secure lives.

Understandably, providers place a large focus on the financial aspects of future planning. After all, many are unprepared for life after a career. According to the NIA survey, more than one in five workers have less than $5,000 saved for retirement. But the reality of life after work extends beyond just financial considerations. In a recent Manulife study, one retiree shared, “I have seen people unable to cope with retirement. The issue isn’t financial. It's about maintaining a purpose in one’s life.”

Build financial resilience

A longer life also means a longer retirement. Coupled with a high cost of living, saving for the future can seem nearly impossible for members. In the “Ageing in Canada Survey”, it was found that most Canadians say they can’t afford to retire when they want. Likewise, many are forced to stop working early due to illness and caregiving.

Because of this, helping members maximize their savings during working years is crucial. Sharing educational resources such as webinars and articles can assist with building member understanding on finances and investing. At the same time, promoting plan programs like employer matching and access to a licensed financial advisor can help address savings gaps.

Focus on preventative health

The NIA report revealed that the vast majority of Canadians over 50 needed health care services at least once in the past year. According to the government of Canada, many ailments, including chronic diseases, are preventable or can be delayed with lifestyle choices and other actions.

Healthy living resources may already be available as part of your retirement plan, including wellness programs and benefits. Additionally, you can share resources from your health benefits provider, if available or any wellbeing benefits from the employer organization including gym discounts or lifestyle spending accounts, for example.

Cultivate social connections

It’s easy to forget that along with a paycheque, work gives people the social connections and relationships they could otherwise miss out on. The NIA survey showed that nearly half of older Canadians are at risk of social isolation and most report feeling lonely. This sentiment was echoed in our annual survey with one retiree reporting, “I was surprised how much I missed my job.” Another lamented “the lack of connection through working with people every day.”

Employers are in a good position to enable social engagement through any existing partnerships or community affiliations. Some support volunteer activities, mentorship programs, or sports teams within the organization. This doesn't have to be a significant undertaking by the employer, but simply an acknowledgment that maintaining social connectivity in retirement is as important as other factors.

Canadians are living longer and this demographic switch affects the retirement industry and what support workers need from employers. Because the length of retirement could be multiple decades in length, members need to consider their social and physical health, along with their financial resilience. This shift towards a more holistic plan considers the quality of retirement and not simply the quantity. By embracing this three-pronged approach, sponsors and advisors can truly respond to the needs of the next generation of retirees.