Colour-coded’ retirement security: Study finds economic marginalization and inequity follow people into old age
June 18, 2021
Indigenous and racialized seniors have much lower retirement incomes and higher poverty rates than their white counterparts, which a new study says reflects how economic marginalization and inequity follows people into their old age.
Overall, white Canadian seniors enjoy the most retirement security with an average yearly income at $42,800, way above the $32,200 for their peers in the Indigenous communities and $29,200 for visible minorities over the age of 65.
Based on 2016 census data, the report by the Canadian Centre for Policy Alternatives found 13.7 per cent of white seniors lived in poverty compared to 21.5 per cent among Indigenous seniors and 19.8 per cent among racialized seniors, according to the Low Income Measure After Tax or LIM-AT.
Hence, it’s not surprising that seniors from marginalized groups have to count on public pensions and benefits to make up for lagging retirement incomes, says the study, titled “Colour-coded Retirement,” released Wednesday.
“The data reveal that there are real consequences of economic marginalization and systemic racism. Elders and seniors are financially insecure in retirement, if they can retire at all, because the opportunities for saving are so limited,” says Hayden King, a report co-author and executive editor of the Yellowhead Institute, a First Nation-led research centre.
Senior white Canadians, who made up 85 per cent of the senior population in the country, have the most diverse sources of income of all groups.
About a third of their income comes from public pension sources such as the Canada and Quebec Pension Plans, Old Age Security (OAS), and the Guaranteed Income Supplement (GIS); a third from retirement contributions to work and individual pension plans; and the rest from investment and employment earnings as well as other sources.