1 in 5 Canadians Are Over 65—What This Means for CPP and the Future of Canada

Canada has reached a demographic milestone that carries serious implications for our economy, public services, and—most notably—our national retirement system. As of 2024, one in five Canadians is now over the age of 65. This shift is more than just a statistic; it’s a signal that both policymakers and investors need to plan for a very different future.

So what does this aging population mean for the Canada Pension Plan (CPP) and for Canadian society as a whole? And how might these changes impact real estate investment strategies?

Canada’s population is aging faster than ever before. Advances in healthcare and a decline in birth rates have led us here. In 1971, the average age in Canada was 26. Now, it’s closer to 42. By 2030, seniors will make up nearly 25% of the population.

This dramatic shift affects everything from healthcare demand to consumer behavior—but perhaps nowhere more acutely than in the retirement system.

The Strain on CPP

The Canada Pension Plan is designed as a pay-as-you-go system, meaning today’s workers fund the benefits of today’s retirees. With more people drawing from the system and fewer people paying into it, pressure is building.

Some key concerns include:

• Sustainability: CPP is currently stable, but continued demographic changes could necessitate higher contribution rates or adjustments in benefits.
• Earlier Retirement, Longer Lives: Canadians are living longer and retiring earlier, extending the payout period.
• Increased Draw on Public Services: An older population means more healthcare and senior housing costs, stretching government budgets.

What This Means for the Future

Here’s where the opportunity lies: while challenges loom for public pensions, private investment—especially in real estate—can play a powerful role in retirement security and economic resilience.

Here’s why real estate continues to be a smart play in this evolving landscape:

• Stable Cash Flow: Rental properties generate consistent income—an attractive trait for retirees seeking alternatives to volatile markets or underperforming pensions.
• Senior Housing Demand: The aging population is driving demand for age-appropriate housing, from retirement communities to long-term care facilities.
• Urban Downsizing Trends: As older Canadians sell larger homes to downsize, this opens up opportunities in the condo, townhouse, and rental markets.

Strategic Investment in an Aging Nation

At Dez Capital, we see this demographic shift not as a crisis, but as a call to action—and a chance to build resilient investment portfolios. Whether it’s diversifying into multifamily housing, developing senior living facilities, or repositioning assets in retirement-friendly communities, real estate stands as a bulwark against the uncertainties of public pension systems.