Economic and fiscal implications of Canada's aging population : Répercussions économiques et budgétaires du vieillissement de la population canadienne

The fundamental strength of the Canadian economy was reflected in the fact that Canada fared better than other Group of Seven (G-7) countries in the face of the global recession and during the recovery. [...] This document is structured as follows: The demographic challenge: Population aging will be a key challenge over the coming decades as the share of the population aged 65 and older increases and the share of the population of working age falls. [...] With the Government’s plan to return to balanced budgets over the medium term and to ensure the sustainability of public finances over the longer term, Canada is better prepared than most countries to adjust to the demographic changes now underway. [...] As the baby boom generation enters retirement age, the ratio of the elderly (65+) to the working- age (15 to 64) population is expected to almost double from its current level of about 21 per cent to 37 per cent in 2030.3 3 Throughout this document, the working-age population is defined as the population aged 15 to 64, following Statistics Canada’s definition. [...] Combined with measures taken to close tax loopholes and improve the fairness and integrity of the tax system, spending reductions will contribute to a projected return to balanced budgets over the medium term.8 The gradual return to budgetary surpluses is expected to bring Canada’s federal debt in relation to the economy to its pre-recession level (28.5 per cent of GDP) by 2016–17.