The ageing population is expected to give rise to a large hike in future levels of government spending. To get an idea of the potential fiscal imbalance, it is estimated that there will be a 7.1% GDP gap between government revenues and expenditure by 2045, a deficit.
Apart from increased healthcare spending, an ageing population will also require governments to allocate more resources to senior income transfer programs such as the Guaranteed Income Supplement (GIS) and Old Age Security (QAS). Gross spending on these programs total C$48.3 billion (US$37.6 billion), an estimated 2.4% of the country’s GDP.
In 2016, for the first time, the share of seniors (16.9%) exceeded the share of children (16.6%)