The Capital Accumulation Plan Income Tracker (CAPit), published monthly by actuarial consulting firm Eckler Ltd., found that vulnerability and the cost of living have increased for those over 50 during April 2024.

“In the first quarter of 2024, outcomes for capital accumulation plan members saw a slight uptick as annuity rates rebounded to levels comparable to those from two quarter prior,” they state. “Gross income replacement ratios remained at multi-year highs. A typical male member retiring at the end of March 2024 achieved a gross income replacement ratio of 64.3 per cent and a female member achieved 62.7 per cent.” 

Rising inflation 

The report looks at inflation, pointing out that the 2022 surge in inflation was the most significant recorded since 1982. “The compounding effect of inflation is felt by many Canadians and continues to be the number one concern for pre-retirees (age 50+) and retirees,” they write.

“The rising cost of living has had a significant impact on savings for many Canadians, including those who have already retired. In a recent survey by the Ontario Securities Commission (OSC), in partnership with Ipsos, 33 per cent of retirees say their monthly expenses in retirement are higher than expected,” they state. “Notably individuals with lower incomes are disproportionately affected as higher expenses jeopardize their ability to maintain their pre-retirement standard of living as they age.”