Gap Between Rich and Poor: Elderly (65 years of age and older) Poverty Rate

The poverty rate is one way to assess how many people are at the lower end of the distribution of income. The elderly poverty rate is especially relevant because the baby boom generation is aging quickly, which implies that this indicator will affect an increasing share of the population in years to come (approximately ¼ of the population).

There are three common measures of poverty: LIM is a relative measure of poverty, whereas the MBM and the LICO are absolute measures of poverty. In general, absolute poverty (MBM and LICO) appears to be decreasing or steady over the long-term but according to LIM, the relative measure, we have seen a significant increase in Canada from a 7.6% elderly poverty rate in 2000 to 12.3% in 2010, indicating a growing gap between rich and poor. Canada’s three largest cities – Toronto, Vancouver and Montréal are all above the national average according to all three measures of elderly poverty in 2010.