OTTAWA – July 15, 2009 – As Canadians are living longer, more are expected to receive pension benefits from the Canada Pension Plan (CPP) for a longer period of time, according to a study released by the Chief Actuary of Canada.
The CPP Mortality Study produced by the Office of the Chief Actuary finds that by 2050, male beneficiaries are expected to receive their retirement benefit for an additional 3.3 years and female beneficiaries for an additional 2.3 years, compared to the same study in 2005. The increase in life expectancy is anticipated to grow to a total of four additional years for both genders by 2075.
The study�s results also underscore a correlation between the level of CPP income and the beneficiary�s life expectancy; the higher the CPP retirement pension, the higher the beneficiary�s life expectancy. At age 60, male CPP beneficiaries with a maximum pension tend to live three years longer than male beneficiaries with a lower pension. A two year gain was observed for female beneficiaries.
Over the past 15 years, male beneficiaries have experienced a 26 per cent reduction in their mortality while a 15 per cent reduction was observed for females. Males between the ages of 65 and 69 have experienced the largest reduction, while females aged 85 to 94 have barely seen a reduction in their mortality.
�This information is very valuable as it helps us plan and anticipate both real and potential shifts in the strength of the CPP,� says Jean-Claude M�nard, Chief Actuary. �The study�s findings, coupled with our other actuarial research, leaves us satisfied that the CPP will remain viable for the next 75 years as projected in our 23rd Actuarial Report.�
Future mortality improvements are expected to come more slowly and at older ages, as mortality rates at younger ages are already very low. Most of the increase in life expectancy at birth over the last thirty years has come from improvements in mortality at ages 65 and over. As a result, life expectancy at age 65 has increased from 14 to 18 years for males and from 18 to 21 years for females.
The Office of the Chief Actuary operates independently within the Office of the Superintendent of Financial Institutions (OSFI) and provides actuarial services for key government plans and programs such as the CPP, Old Age Security, Canada Student Loans Program, and pension and benefit plans that cover public servants, members of Parliament, and the Canadian Forces among other groups.
OSFI is an independent agency of the Government of Canada. It reports to the Minister of Finance. For more information visit www.osfi-bsif.gc.ca.