What is the Life Expectancy in Canada, & Why Does It Matter for Retirement Planning?

Lloyd Litke |
Categories
retirement planning
life insurance
retirement budget

Canadians are living longer than ever before. In fact, compared to a century ago, the average Canadian born today can expect to live roughly 20 years longer. While no one can predict exactly how long they will live, understanding life expectancy can help you make informed decisions about your health, finances, and retirement plans.

Recent data shows that life expectancy in Canada is rising again after a temporary decline during the COVID-19 pandemic. In 2023, average life expectancy reached about 81.7 years, up from 81.3 years in 2022. Better treatment for chronic illnesses, cardiovascular disease, and cancer has played a vital role in this improvement.

Factors That Influence Life Expectancy

Life expectancy is not the same across all regions of Canada. People living in rural or remote communities often face unique challenges, including reduced access to healthcare services and specialists. Higher rates of smoking, obesity, excessive alcohol consumption, and chronic stress can also contribute to shorter life expectancy.

Average Life Expectancy at Birth for Women in Canada by Province

Average Life Expectancy at Birth for Men in Canada by Province

What Does Life Expectancy Mean for Retirement Planning?

As Canadians continue to live longer, retirement planning becomes increasingly important. A retirement that once lasted 10 to 15 years may now extend 25 years or more.

This longevity creates both opportunities and challenges. While a longer retirement provides more time to enjoy family, travel, and personal interests, it also means your savings may need to support you for decades after you stop working.

Questions worth considering include:

  • Will my retirement savings last long enough?
  • When should I start taking CPP and OAS?
  • How should I structure withdrawals from my RRSPs or RRIFs?
  • What strategies can help protect my income from inflation?

We can also look for life insurance plans that make getting coverage easier for people who might struggle to get insurance. Simplified issue no medical life insurance can help applicants get the protection they need.

A comprehensive retirement plan can help address these concerns and provide confidence that your financial resources will support your desired lifestyle throughout retirement.

 

Source: https://www.cpp.ca/blog/what-is-the-life-expectancy-in-canada/