Rate of Elderly Living in Poverty
Percent share of low-income persons age 65+ in all persons age 65+
Poverty is the condition of a person who is deprived of the resources, means, choices and power necessary to acquire and maintain a basic level of living standards and to facilitate integration and participation in society.
Why This Matters
Poverty affects the strength and resilience of our community. When some of us are left behind, all of us are affected.
“After 20 years of reductions, Canada’s elderly poverty rate rose between the mid-1990s and late 2000s.
“Elderly poverty is both a social and a fiscal problem that will be exacerbated as higher percentages of populations in developed countries move into the over-65 demographic. Poverty rates among the elderly tend to be highest among women, particularly widows over the age of 75. This is largely due to pension allowances that have traditionally been linked to employment history.
“As Canada and its peers work to encourage the growth of private pensions as a means of decreasing reliance on public pension systems, the most vulnerable among the elderly are being put at greater risk of poverty. According to The European Centre for Social Welfare Policy and Research, “Systematic reforms have changed the nature of pension provision from defined benefit type provisions to defined contribution type provisions.” Defined contribution plans—in which people receive only what they put into the plan plus whatever that investment earns—can result in a greater risk of poverty in retirement for people who have earned less while working.” Conference Board of Canada text accessed November 7, 2019
Measurement and Limitations
In 2016 in Peterborough CMA, 6.1 percent of the elderly age (65 plus) were living in poverty based on the Low-income Measure (after tax). The rate was up 2.5 percentage points from 2004 (3.6 percent) and down 0.4 percentage points from 2015 (6.5 percent). The 2016 figure was lower than the national average (13 percent) and lower than the Ontario average (11.7 percent).
Low income situation of individuals is determined using the Census Family Low Income After-Tax Measure (CFLIM-AT). Individuals are defined as having low income if their adjusted after tax income falls below 50% of the total population median adjusted after-tax income. Adjusted after-tax income is derived by dividing census family income by the square root of the census family size and assigning this value to all persons in the census family. This adjustment distributes income among the members of the census family, and takes into account the economies of scale present in larger families, the increasing number of people living on their own and the decline in family size over time.
The information in this table is based on the updated methodology for Census Family Low Income After-Tax Measure (CFLIM-AT) statistics derived from the T1 Family File. The updated methodology was introduced in April 2018. Statistics based on the former methodology can be found in CANSIM table 111-0015. For more information on methodological changes, please consult the research paper ‘Methodology Changes: Census Family Low Income Measure Based on the T1 Family File’ (catalogue no. 75F0002M).
Last update: June 2019. Source is updated annually
For more information on local initiatives, visit Peterborough Poverty Reduction Network (PPRN).
Conference Board of Canada, Elderly Poverty accessed November 7, 2019
Towards a Poverty Reduction Strategy – A backgrounder on poverty in Canada – accessed November 7, 2019
Rate of Elderly Living in Poverty in the Sustainable Development Goals
Click on the SDG to reveal more information
1. End poverty in all its forms everywhere
Extreme poverty rates have been cut by more than half since 1990. While this is a remarkable achievement, one in five people in developing regions still live on less than $1.90 a day, and there are millions more who make little more than this daily amount, plus many people risk slipping back into poverty.
Poverty is more than the lack of income and resources to ensure a sustainable livelihood. Its manifestations include hunger and malnutrition, limited access to education and other basic services, social discrimination and exclusion as well as the lack of participation in decision-making. Economic growth must be inclusive to provide sustainable jobs and promote equality.
Related Rate of Elderly Living in Poverty Targets
By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions