We all know Canada’s population is aging. However, based on a recent Statistics Canada report, our population is still relatively young compared to other major developed countries.

With the median age of Canada’s population currently at 38.9 years, Canada sits in 16th place among the 30 member countries of the Organization for Economic Co-operation and Development (OECD). At the top of the OECD age list is Japan with a median age of 42.9 years. Mexico is at the bottom with a median age of 25.3 years.

Another perspective on the age of Canada’s population is the proportion of “seniors” aged 65 and over. Between 2002-2007, slightly more than 400,000 Canadians turned 65.

Although the percentage of the population aged 65 and over increased from 12.7% to 13.4% in this period, Canada ranked 22nd among the 30 OECD countries in terms of the number of seniors as a proportion of the total population.

The Number of Canada’s Seniors will Escalate Rapidly
Looking ahead, although we have a younger population, the number of Canadian “seniors” will escalate rapidly over the next 20 years as baby boomers turn 65.

Between mid 2007 and mid 2008, an estimated 300,000 people are projected to turn 65, three times higher than in the previous 12 months. According to Statistics Canada, 500,000 Canadians a year will be putting 65 candles on their birthday cakes by 2027.

More Seniors will choose to Remain Employed
Given longer life expectancies for both men (77.8 years) and women (82.9 years), an increasing number of seniors are likely to choose to remain employed rather than be “put out to pasture.” Faced with growing shortages of skilled workers, firms will be forced to adopt more flexible employment policies to take advantage of a growing pool of skilled “seniors” who want, or need, to remain in the workforce on a full or part-time basis.

By remaining employed and continuing to pay taxes, these seniors will help to offset some but not all of the increasing pension and health benefit costs associated with the country’s steadily aging population.