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The Diversification and the Privatization of the Sources of Retirement Income in Canada

Author

Listed:
  • Long Mo
  • Jacques Légaré
  • Leroy Stone

Abstract

Recent labour market developments in the context of population ageing have generated many changes concerning sources of retirement income. More precisely, this paper, which is based on two Statistics Canada surveys (Survey of Consumer Finances and Survey of Labour and Income Dynamics,) will look at the processes of diversification and privatisation of income sources of Canada’s retirees during the period 1980-2002. This study has used the concept of individualized income based on the economic family in order to consider economies of scale and revenue sharing. An appropriate assessment of the composition of retirement income sources has been realized, while discerning five distinct categories: net government transfer payments, CPP/QPP benefits, private pensions, investment income and employment income. The situation of older women living alone and of older immigrants has been more carefully analyzed in order to detect some particularities among those two vulnerable groups. The results of this study demonstrate that retirees’ income composition has undergone many changes. In addition, sources of retirement income have become substantially more diversified and privatized during the period under study. These adjustments are becoming essential in western societies in order to overcome the obstacles caused by population ageing that could disrupt pension systems.

Suggested Citation

  • Long Mo & Jacques Légaré & Leroy Stone, 2006. "The Diversification and the Privatization of the Sources of Retirement Income in Canada," Social and Economic Dimensions of an Aging Population Research Papers 159, McMaster University.
    • Handle: RePEc:mcm:sedapp:159
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    File URL: http://socserv.mcmaster.ca/sedap/p/sedap159.pdf
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    References listed on IDEAS

    as
    1. Monika Queisser, 2000. "Pension Reform and International Organizations: From Conflict to Convergence," International Social Security Review, John Wiley & Sons, vol. 53(2), pages 31-45, April.
    2. Abdurrahman Aydemir & Mikal Skuterud, 2005. "Explaining the deteriorating entry earnings of Canada's immigrant cohorts, 1966 – 2000," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 38(2), pages 641-672, May.
    3. Myles, John, 2000. "The Maturation of Canada's Retirement Income System: Income Levels, Income Inequality and Low Income Among the Elderly," Analytical Studies Branch Research Paper Series 2000147e, Statistics Canada, Analytical Studies Branch.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Retirement; pensions; financial security; Canada;
    All these keywords.

    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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