Aug 22, 2017
By Jane Brown
A review of Canada’s largest seniors benefit program predicts that spending will reach all-time highs over the coming years with waves of baby boomer retirements along with longer life expectancy for Canadians.
The report by Canada’s chief actuary is the first glimpse into how the Canada Pension Plan expansion, phased in over 40 years, will affect old age security.
With more beneficiaries drawing payments for longer periods of time, program spending is projected to hit about $247-billion by 2060.
That’s almost a five-fold increase from planned spending this year.
The projected increase is expected to be cushioned by ongoing economic growth even as Canada Pension Plan benefits increase.
Statistics Canada projects there could be 12-million people 65-plus living in Canada by 2061.