OECD warns poverty among seniors rising in Canada, points to public pensions gap

OTTAWA – A new report from a major international think-tank says the poverty among Canadian seniors is growing and that current pension safety nets may be inadequate to deal with the problem.

The comprehensive study on global pensions by the Organization for Economic Co-operation and Development found that Canadians over 65 years of age are relatively well off when compared with most others in the 34-country group of advanced economies.

For example, the average poverty rate for the group in Canada was 7.2 per cent during the study period, among the 10 lowest rates in the OECD and better than the 12.8 per cent average.

But the report also points to gaps in the Canadian situation.

For instance, as poverty rates were falling in many OECD countries between 2007 and 2010, in Canada they rose about two percentage points.

As well, the report notes that so called public (government) transfers to seniors in Canada account for less than 39 per cent of the gross income of Canadian seniors, compared with the OECD average of 59 per cent, meaning more Canadians depend on workplace pensions to bridge the gap.