Health Care, Financial Security, and Retirement in the Canadian Context

• In Event: 480 - Section on Medical Sociology Refereed Roundtable Session and Business Meeting
  In Refereed Roundtable 60min: Table 07. Health Policy

Abstract

The Canadian health care system covers all medically necessary expenses. However, as the population ages it is becoming increasingly evident that definitions of what is medically necessary are not always straightforward. This has implications for individual’s retirement planning, for pension systems, and for the health care system. While a substantial body of research has focused on financial needs in retirement, to date there has been no attempt to systematically assess the extent to which recent research has incorporated out-of-pocket health-related expenditures when examining retirement income adequacy in Canada. To address this gap, we undertook a scoping review of studies published between 2000-2015 examining retirement income adequacy in Canada. Out of a total of 51 studies that were identified as analyses of retirement income adequacy, only 5 incorporated health-related expenditures. Despite notable heterogeneity in how income adequacy is assessed in these 5 studies, findings suggest health expenses comprise approximately 6-12 percent of household expenses in retirement. Notably, these studies did not assess some of the more common measures of retirement adequacy, such as the replacement rate. This study highlights a significant gap in the existing literature and has implications for pension policy, the Canadian health care system, and individual retirement preparedness.

Authors

• Michelle Pannor Silver, University of Toronto

• Natalie Warrick, University of Toronto, Institute of Health Policy, Management & Evaluation

• Ryan O'Reilly, University of Toronto