Canadian Retirement Research Articles

Jardin Royal Garden Retirement Home: Success Amid Burnout in Canadian Retirement Homes During the COVID-19 Pandemic

The COVID-19 pandemic has had many long-term effects on various sectors, but its impact was particularly devastating in retirement homes. Jardin Royal Garden is a retirement home in Ottawa, Canada, and was among the few homes not to have experienced a single case of COVID-19 during the peak of the pandemic while other retirement homes in the region battled multiple outbreaks. The success of their strategy is largely a result of a proactive approach and the trust and relationships between management, employees, residents, and residents’ families.

Older Adult Stair and Walking Speeds from Controlled Trials as Inputs into Simulations of Retirement Home Evacuation

This work aims to add to the current database of human movement data, specifically, 3-stair descent speeds from controlled trials of typically aging older adults (n=212, aged 60-99) with and without mobility impairments. Additionally, to explore the impacts of model input parameters, stair and walking speeds obtained from controlled trials are used to simulate first-iteration Canadian retirement home egress scenarios with Pathfinder. Analysis of descending stair speeds reveal interesting trends and key inter-population variations. Moreover, when the stair and horizontal walking speeds determined from these controlled trials are used as inputs into the illustrative egress simulations, a difference in predicted egress outcomes are seen compared to when model defaults are used. Together, the findings indicate important egress considerations for a vulnerable population.

Canadian Retirement Planning Behavior: How Reliance on a Government Pension Relates to Pre-Retirement Savings and Planning Behaviours

ABSTRACT Canadians benefit from a robust government pension system that is designed to alleviate poverty. Concerns remain that Canadians are not saving enough for retirement. This study examines whether expected reliance on Canada’s government pension system is associated with non-retired Canadians’ engagement with retirement saving behaviour. Controlling for a variety of demographic and socioeconomic factors, this study supports the hypotheses that Canadians who expect to rely on government pensions are less likely to save and/or calculate retirement needs. This may contribute to retirement shortfalls. Implications for policymakers, practitioners, and researchers are discussed.

Opportunities and challenges in providing health care for International Retirement Migrants: a qualitative case study of Canadians travelling to Yuma, Arizona

BackgroundIncreasing numbers of older individuals opt to spend extended time abroad each year for lifestyle, health, and financial reasons. This practice is known as international retirement migration, and it is particularly popular among retirees in Global North countries such as Canada. Despite the popularity of international retirement migration, very little is known about how and why health care is accessed while abroad, nor the opportunities and challenges posed for destination hospitals. In this article we focus on addressing the latter knowledge gap.MethodsThis qualitative case study is focused on the only hospital in Yuma, Arizona – a popular destination for Canadian retirement migrants in the United States. We conducted focus groups with workers at this hospital to explore their experiences of treating this transnational patient group. Twenty-seven people participated in three, 90-min focus groups: twelve nurses, six physicians, and nine administrators. Thematic analysis of the focus group transcripts was conducted using a triangulated approach.ResultsParticipants identified three care environments: practice, transnational, and community. Each environment presents specific opportunities and challenges pertaining to treating Canadian retirement migrants. Important opportunities include the creation of a strong and diverse seasonal workforce in the hospital, new transnational paths of communication and information sharing for physicians and health administrators, and informal care networks that support formal health care services within and beyond the hospital. These opportunities are balanced out by billing, practical, administrative, and lifestyle-related challenges which add complexity to treating this group of transnational patients.ConclusionCanadians represent a significant group of patients treated in Yuma, Arizona. This is contrary to long-standing, existing research that depicts older Canadians as being reluctant to access care while in the United States. Significant overlaps exist between the opportunities and challenges in the practice, transnational and community environments. More research is needed to better understand if these findings are similar to other destinations popular with Canadian international retirement migrants or if they are unique to Yuma, Arizona.

Annuities and Their Derivatives: The Recent Canadian Experience

This chapter surveys recent developments within the Canadian “income annuity” marketplace. We start by computing the Money’s Worth Ratio (MWR) using a unique dataset which includes a decade of Canadian annuity payouts. We then move-on to discuss the Guaranteed Lifetime Withdrawal Benefit (GLWB) product which has recently become available in Canada. This important innovation is extremely popular and shares many characteristics with a conventional income annuity. Finally, we conclude with thoughts on the optimal product allocation within the context of the Canadian retirement portfolio.

Headed for the Poorhouse: How to Ensure Seniors Don't Run Out of Cash Before They Run Out of Time

Income security in later life (age 85) is more important now than ever. More attention needs to be paid to how Canadians can best draw down their savings after retirement and secure adequate income for advanced ages. Retiring Canadians need innovative solutions – ones that add definitive value but place no new pressures on the Canadian public purse. I propose a government-led solution: Canada’s Living Income For the Elderly (LIFE). As an integrated component of the Canadian retirement income system, LIFE would effectively enable retiring Canadians to pool their financial savings to better protect those who live to age 85 and beyond. LIFE would give Canadian seniors the affordable, secure retirement income they want, when they need it, without shifting the cost and risk burden to the rest of Canadians. Retirees don’t want to think about later life planning. It’s daunting, confusing, complex and expensive. LIFE would offer a simple, understandable and effective solution that is equitable across generations of annuitants and taxpayers. Administered as a national program, LIFE would be widely accessible. It would give Canadian retirees full freedom of choice, help overcome behavioural biases against annuities, encourage retiring Canadians to proactively prepare for advanced ages and allow them to maintain control of the vast majority of their financial savings while also improving retirement security – benefitting not just Canada’s elderly population, but also the Canadian economy on the whole.

Reforming Canada's Retirement Savings System – Solutions for a Non-Existent Problem?

During the past five years in Canada, issues concerning the adequacy of the Canadian retirement system has been debated with increasing intensity amongst politicians, economists, academics, policy analysts, think tanks and unions. This paper contributes to this important theoretical and public policy debate by reviewing and analysing existing research and presenting and reviewing additional empirical evidence. The central issue in this debate is whether or not Canadians are saving and investing enough through government, employer and private savings to provide an adequate income in retirement. And if a retirement income adequacy problem does exist, is it a universal problem for most Canadians or does it only affect some income groups or age cohorts? The third major question concerns the appropriate policy response. The paper also reviews and questions whether the current and proposed policies properly address the challenge and provides some recommendations. The paper shows that the larger part of this debate actually hinges on assumptions surrounding savings and the definition of savings. Those who claim that Canada faces a national pension and savings crisis only consider government and private savings pension plans whose assets are approximately only one third of total household wealth in Canada. However, this narrow definition of savings exclude all savings and investments held outside of recognized pension plans and thus exclude investments in stocks, bonds etc. as well as private homes and secondary residences which can provide for an important source of retirement income. However, there are a small number of Canadians that are or will be below the poverty line and this calls for a targeted policy response rather than an across the board reform of the Canada Pension Plan or provincial programs such as the newly proposed Ontario Retirement Pension Plan (ORPP) which may actually be viewed as a payroll tax. Based on the evidence and analysis, the paper concludes that most Canadians do not face an inadequate income during retirement and no new government policy response is needed.

Demographic Changes Affecting Our Pensions

Our Canadian retirement system contains three pillars, focusing on providing all members of Canadian society with a minimum and guaranteed standard of living for retirement, throughdirect transfers to help the working poor (first pillar) to Canada Pension Plan payments through mandatory monthly deductions (second pillar) funding current retirees and through taxdeductions offered via Canadians’ private savings (third pillar). Yet, with the baby boom generation presently retiring, and the current workforce positively shrinking, how will our monthly paycheck deductions towards Canada Public Pension payments be affected? Did you know that when you are born in 1985, you receive approximately $0.70 in retirement back from the government for every $1 contribution made from your current paycheck, and $0.60 back for every $1 contribution if born in 1995? These demographic changes are negatively affecting the future returns of our Canada Public Pension payments, despite a +$150 billion Canada Pension Plan Investment fund and the other two pillars of the Canadianretirement system. Either one improves the second pillar as it is, affecting the other two pillars, or one completely replaces that system with alternative options. This presentation will focus on the alternative options available and what can be done to mitigate the negative effects of the present demographic changes affecting the status of our Canada Public Pensions.

Canadian Retirement Incomes: How Much Do Financial Market Returns Matter?

How much might poor financial market returns affect the financial well-being of Canadian seniors? We compare three scenarios: if Canadian financial markets (a) never experienced the financial crisis of 2008 (i.e., continued on their pre-2008 path); (b) experienced the crisis and return to historical trends; or (c) enter a new low normal of depressed stock market returns and continued low interest rates. Using a population microsimulation model, we model the first order impacts—that is, before behavioural responses such as delayed retirement or increased savings—on the retirement income flows of Baby Boom retirees. While annual income from private savings of the median Canadian baby-boom senior drops by over half in the event of continuing low financial market returns, median financial welfare drops by only just over a fifth. Rising social transfers and stable income sources (such as Canada/Quebec Pension Plan and implicit income from home ownership) partially shield Canadian seniors from financial market risk. Canadian research has long recognized that the Canadian social pension system protects poorer Canadian seniors from destitution. Our results indicate that it also helps shield the Canadian elderly population as a whole from financial market risk.

The Calculation of Age

This article explores the role of calculative technologies, such as taxation, accounting and actuarial practices, in constructing ‘age’ in contemporary society. It argues that retirement income programs built on these technologies attempt to construct specific relations not just between the individual and other generations, but between the individual and herself at other stages of life. Retracing the series of Canadian attempts to secure income for the elderly over the course of the 20th century, the paper shows how calculative technologies have been used to connect responsibility for the elderly to the political rationalities of the day. This genealogy allows us to recognize how the present Canadian retirement income system, with its public and private programs addressing different subsets of the population, is contingent on neoliberal rationalities of governance. These demand the alignment of the individual with the goals of the capital markets, and seek to achieve this through a distributed agency that encourages the investment of individual savings in retirement income products. The paper argues that this distributed agency is perpetually incomplete, and that uncertainty is necessary in order that the individual be constantly remade as an investor.

The Subject of Retirement

This paper examines the ”subject of retirement,” one of the most intimate governmental technologies of our present. It extends Read’s argument regarding Foucault’s views on neoliberalism, by providing explicit examples of the technologies of neoliberal government. Read drew attention to the intensification of governmentality by which neoliberalism has operated, and its pervasion into every aspect of society as the individual-as-citizen is transformed into the individual-as-entrepreneur. By examining the Canadian retirement income system, this paper provides a specific example of accounting as a tool of governmentality, a technology integral to neoliberalism’s regime of truth and its production of subjectivity.

Consumption Patterns Among Aging Canadians: A Synthetic Cohort Approach

Studies of pre- and post-retirement annual income have focused on the extent to which income falls at this crucial stage in life. Although these studies vary in scope and intent, the overall consensus is that the Canadian retirement income system provides income replacement rates that are in the excess of 60% to 70% for a plurality of Canadians, especially for those who had low incomes during their prime working years. However, little has been published on the extent to which retirees maintain their same levels of consumption. Using data from the Survey of Family Expenditures (FAMEX) and from the Survey of Household Spending (SHS), this study develops a synthetic cohort approach to determine how the consumption patterns of households headed by individuals in their late 40s (in the early 1980s) differ from those of a group of households headed by individuals in their early 70s (in the late 2000s). It finds that, even though the nature of consumption changes over time, the overall levels of consumption “per adult” do not decline by substantial amounts among Canadians as they age.

The Canadian National Retirement Risk Index: Employing Statistics Canada’s LifePaths to Measure the Financial Security of Future Canadian Seniors

This article measures a Canadian National Retirement Risk Index (NRRI). Originally developed by the Center for Retirement Research at Boston College, the NRRI is a forward-looking measure that evaluates the proportion of working-aged individuals who are at risk of not maintaining their standard of living in retirement. The Canadian retirement income system has been very effective in reducing elderly poverty, but our results suggest that it has been much less successful in maintaining the living standards of Canadians after retirement. Since the earlier years of the new millennium, we find that approximately one-third of retiring Canadians have been unable to maintain their working-age consumption after retirement—a trend that is projected to worsen significantly for future Canadian retirees. The release of the Canadian NRRI is timely given the widespread concern that the current Canadian retirement income system is inadequate. Many proposals have recently emerged to extend and/or enhance Canadian public pensions, and the NRRI is a tool to test their merit. The methodology underlying the Canadian NRRI is uniquely sophisticated and comprehensive on account of our employment of Statistics Canada’s LifePaths, a state-of-the-art stochastic microsimulation model of the Canadian population. For instance, the Canadian NRRI is novel in that it models all of the relevant sources of consumption before and after retirement, while accounting for important features that are typically neglected in retirement adequacy studies such as family size, the variation of consumption over a person’s lifetime, and the heterogeneity among the life courses of individuals.

The Canadian National Retirement Risk Index: Employing Statistics Canada's LifePaths to Measure the Financial Security of Future Canadian Seniors

This article measures a Canadian National Retirement Risk Index (NRRI). Originally developed by the Center for Retirement Research at Boston College, the NRRI is a forward-looking measure that evaluates the proportion of working-aged individuals who are at risk of not maintaining their standard of living in retirement. The Canadian retirement income system has been very effective in reducing elderly poverty, but our results suggest that it has been much less successful in maintaining the living standards of Canadians after retirement. Since the earlier years of the new millennium, we find that approximately one-third of retiring Canadians have been unable to maintain their working-age consumption after retirement—a trend that is projected to worsen significantly for future Canadian retirees. The release of the Canadian NRRI is timely given the widespread concern that the current Canadian retirement income system is inadequate. Many proposals have recently emerged to extend and/or enhance Canadian public pensions, and the NRRI is a tool to test their merit. The methodology underlying the Canadian NRRI is uniquely sophisticated and comprehensive on account of our employment of Statistics Canada's LifePaths, a state-of-the-art stochastic microsimulation model of the Canadian population. For instance, the Canadian NRRI is novel in that it models all of the relevant sources of consumption before and after retirement, while accounting for important features that are typically neglected in retirement adequacy studies such as family size, the variation of consumption over a person's lifetime, and the heterogeneity among the life courses of individuals.

Accounting and the construction of the retired person

This paper seeks to describe the constitutive role played by accounting in the social safety net for the elderly, and its effects on the individual preparing for retirement. The paper documents the effects of accounting on life-long behaviours, through the objectivization of the individual as a worker, saver, and pensioner. It shows how accounting has, by capturing measures of individual earnings, by enlisting the individual in the preparation of tax returns, and by reflecting back to the individual various accumulations of lifetime savings, attempted to transform that individual not just into a saver who can continue to consume long after ceasing to produce, but into an investor whose interests are aligned with the financial markets. The focus of the paper is the Canadian retirement income system. Starting with an early attempt at retirement income protection, the 1908 government annuities program, the paper develops a genealogy of Canada’s present comprehensive retirement income system. By examining the succession and accumulation of retirement income programs introduced since 1908, the study shows how accounting has functioned as a dividing practice, separating citizens into categories wherein they can be subjected to particular programs. The paper suggests that the accounting technologies used in constructing the Canadian system have fallen short as tools for governing retirement and retirement savings, largely due to their inadequacy as technologies of the self. The paper is of particular relevance to accounting scholars because the aging population in many countries is putting tremendous pressure on retirement income programs. The paper helps us to understanding the role of accounting in shaping political policy on the aged and in preparing citizens for old age.

Retirement Saving in Australia

Australia's retirement income system has two distinctive features: a means-tested public pension, and a policy mandating private retirement saving. These programs have gained increasing international attention as countries address the challenges posed by population aging. In this paper the institutional features of the retirement income system in Australia are outlined and contrasted to the Canadian retirement income system, with an emphasis on private incentives to save. The savings behaviour of current Australian retirees is examined, and the expectations of future retirees considered. Lessons from the Australian experience are drawn, which may inform Canada and other countries as they reform their retirement income system.

The Impact of Gender and Immigration on Pension Outcomes in Canada

This paper analyzes Canadian retirement incomes by focusing on the dynamics of gender and immigration. We demonstrate that elderly women living alone and post-1970 immigrants are more likely to rely on the means-tested component of Canada's pension system, the Guaranteed Income Supplement (GIS), which is an indication of their restricted capacity to maintain an autonomous household. The strong reliance of the Canadian pension system on both public and private earnings-related pensions accentuates the disparities within the labour market, causing both women and immigrants to have lower earnings in retirement. In addition, immigrants suffer from the residency requirements attached to basic pension programs.

The Impact of Gender and Immigration on Pension Outcomes in Canada

This paper analyzes Canadian retirement incomes by focusing on the dynamics of gender and immigration. We demonstrate that elderly women living alone and post-1970 immigrants are more likely to rely on the means-tested component of Canada's pension system, the Guaranteed Income Supplement (GIS), which is an indication of their restricted capacity to maintain an autonomous household. The strong reliance of the Canadian pension system on both public and private earnings-related pensions accentuates the disparities within the labour market, causing both women and immigrants to have lower earnings in retirement. In addition, immigrants suffer from the residency requirements attached to basic pension programs.

Retirement Saving in Australia

Australia's retirement income system has two distinctive features: a means-tested public pension, and a policy mandating private retirement saving. These programs have gained increasing international attention as countries address the challenges posed by population aging. In this paper the institutional features of the retirement income system in Australia are outlined and contrasted to the Canadian retirement income system, with an emphasis on private incentives to save. The savings behaviour of current Australian retirees is examined, and the expectations of future retirees considered. Lessons from the Australian experience are drawn, which may inform Canada and other countries as they reform their retirement income system.

The Poverty of Unattached Senior Women and the Canadian Retirement Income System: A Matter of Blame or Contradiction?

The Poverty of Unattached Senior Women and the Canadian Retirement Income System: A Matter of Blame or Contradiction?