Income for Older Adults Living in Montreal: Wealth Solutions for Health Problems

Creating a more inclusive retirement experience for all Canadians

By Giovanna Busa

Not all Canadians can afford to retire. That is, their financial savings do not cover the costs required to maintain a healthy lifestyle. In turn, this leads to poor health outcomes. These individuals have accumulated a lifetime supply of inequality and adversity that persistently disrupts the quality of their lives well into their old age. Those affected are more often Black, Indigenous, and other persons of colour (BIPOC).

In Montreal, there are more than 350,000 older adults (65 years old or older) out of 2 million habitants. As the population continues to age, more people will need financial assistance to live a healthy lifestyle. Older adults can receive income via savings and pensions (Retirement Pension Plans (RPP) and Registered Retirement Savings Plan (RRSP)) or government benefits (Old Age Security (OAS) and Guaranteed Income Supplement (GIS)) for individuals with low or no RRP and RRSP income.

“The significant increase in the cost of living is impacting the lives of Quebecers, particularly seniors and low-income individuals.” – Québec Finance Minister, Eric Girard.

Income and wealth are crucial factors that impact the health of older adults. Many older adults face financial struggles, which can have negative impacts on their overall health and well-being. Older adults who struggle to meet their basic needs, such as food, housing, and healthcare, are more likely to experience chronic health conditions, mental health issues, and social isolation.

On the other hand, older adults who have sufficient financial resources, such as retirement savings and pension plans, have a greater sense of security and stability in their later years. They are more likely to access healthcare services, maintain a healthy lifestyle, and engage in social activities that promote physical and mental well-being.

Unfortunately, as of now, retirement income is “colour coded” in Canada. The Canadian Centre for Policy Alternatives used 2016 Canadian census data to analyse older adults’ income and retirement savings. Specifically, they compared the finances of racialized older adults to white older adults. Overall, they found that white older adults have greater income security and larger pensions compared to racialized older adults. For Black, South Asian, and Indigenous older adults, this means an average of 30% or approximately $30,000 lower RRSP annual income compared to white older adults.

Sustained actions to dismantle barriers to equitable retirement are urgently required. For one, we must increase access to investment and financial support systems to provide crucial support to marginalized older adults. Increasing the amount older adults receive from government benefits is a way of closing the income gap between privileged and marginalized individuals.

There are many organizations in Montreal that advocate for better health and wealth for older adults. For one, le Réseau de Fédération de l'Âge d'Or du Québec advocates for:

The Canadian government to increase the Old Age Security (OAS) and the Guaranteed Income Supplement (GIS)

Calls for a review of the method of indexing the Old Age Security program

In addition to increasing government benefits for older adults, we can add equitable adjustments. We can expand equity, diversity, and inclusion practices in hiring processes to old-age benefits. For example, older adults who self-refer as a member of a marginalized group could receive additional income from government benefits. Lastly, reducing the cost of living for older adults is crucial. More affordable care and housing is urgently required.

It is pertinent to address and remove marginalization resulting from systemic racism and colonialism. In following Canada’s Anti-Racism Strategy, we as Canadians must be committed to “removing barriers and promoting a country where every person is able to fully participate and have an equal opportunity to succeed.” One day, there will be equal opportunity to not only work, but also retire.