the new retirement risk is not markets, it’s affording the basics
One in five Canadians aged 50 and older cannot afford at least two basic necessities of life – and many of them are already in or near retirement.
According to the National Institute on Ageing’s 2025 Ageing in Canada Survey, 20 percent of community‑dwelling Canadians 50+ are experiencing what the report calls a “poverty-level standard of living” based on a Material Deprivation Index, not on income cut‑offs.
The survey, measures whether people can afford essentials such as regular dental care, adequate heating or cooling, appropriate clothing, transportation and a modest emergency expense.
The index flags deprivation when someone cannot afford at least two of 11 specified items.
In 2025, 18 percent of older Canadians said they could not cover an unexpected $500 expense from their own resources and 14 percent could not spend even a small amount on themselves each week.
Eleven percent could not afford regular dental care, and smaller but notable shares reported difficulty keeping their homes at a comfortable temperature, paying bills on time, buying gifts or participating in important social or cultural occasions.
Unlike income‑based measures that classify poverty using thresholds such as $20,000 to $25,000 in annual income, the NIA’s approach looks at “real, practical measures” of day‑to‑day hardship.
Samir Sinha of Sinai Health System told CTV Your Morning that when people struggle with two or more of these items, “we know that this is a much more accurate measure” of economic strain.
The survey’s authors note that two households with similar incomes can experience very different living standards once health costs, debt, and unexpected expenses are factored in.
The report shows that material deprivation and income adequacy track closely with health, housing and work histories.
People aged 50–64, women, renters, those in fair or poor health, and those without a high school diploma are far more likely to report poverty‑level living conditions.
Among respondents who said their income was “not enough and having a hard time,” 86 percent could not afford at least two essentials; among those who described their income as “not enough and stretched,” 56 percent fell into this category.
CTV News, summarizing the findings, reports that the same survey identified 20 percent of respondents as experiencing “material deprivation,” meaning they struggle to afford essential goods and services.
It also notes that 18 percent of older Canadians could not afford a $500 expense and 11 percent could not afford dental care, highlighting how thin many households’ financial buffers have become.
These pressures reach beyond finances.
The NIA links material deprivation to health, independence and social participation.
In its broader analysis, 43 percent of Canadians aged 50 and older are at risk of social isolation and 57 percent report loneliness, levels that have not budged since 2022.
Those experiencing material deprivation are much more likely to be very lonely and at high risk of isolation than their peers who are not deprived.
Sinha framed this compounding risk in practical terms on CTV Your Morning: “If you can’t even afford some of the basic necessities of life ... how are you going to be able to stay social and engaged, if you can’t afford transportation to get around your communities?”
He added that these constraints “can affect not only your ability to stay socially engaged in your community, but also your health and wellness.”
The survey also finds that confidence in retirement timing is eroding.
Among Canadians 50+ who have not yet retired, the share who say they can afford to retire at their desired time has fallen from 35 percent in 2022 to 29 percent in 2025, while those who say they cannot afford to retire when they want has risen from 37 percent to 43 percent.
At the same time, about 22 percent of working respondents report they have $5,000 or less saved for retirement, excluding property and workplace pensions.
The NIA situates these findings in a broader demographic shift.
Canadians 50 and older already account for 38 percent of the population, or about 15.7 million people.
Statistics Canada data cited in the report show more than 8.1 million people in Canada are 65 or older as of July 2025.
Sinha told CTV News that if current trends continue, Canada will become a “super-aged” nation, with more than one in five residents over 65, reshaping health care, housing and social services.
The survey underlines that a significant segment of older workers and retirees are not simply adjusting to higher prices – they are struggling to meet basic needs.
The combination of thin savings, fixed or modest retirement incomes, rising everyday costs and higher health‑related spending leaves many without the financial capacity to absorb shocks or pay for supports that help them remain healthy, independent and socially connected.
Sinha noted that many older adults want to remain in their homes as they age, but doing so depends on access to the right supports and services.
Without those options, he said, quality of life suffers and opportunities to develop products and services tailored to an ageing population are constrained.
