Ottawa’s spending on seniors is climbing sharply, with federal budget watchdogs warning the program now consumes roughly one of every six dollars spent by the government as Canada’s population continues to age.A report from the Parliamentary Budget Office says Old Age Security and related supports have become the single largest federal spending category, reflecting a rapid expansion in eligibility as more Canadians move into retirement.“As the Canadian population ages there will be an increase in eligibility for elderly benefits,” the report noted. “Old Age Security is currently the largest federal program, responsible for approximately one in every six dollars of federal spending.”Blacklock's Reporter says federal spending on seniors’ benefits is projected to hit $88.8 billion in 2026, up $5.7 billion, or 6.9%, according to the government’s Expenditure Plan and Main Estimates for 2026-27. A later Spring Economic Update pushed the forecast even higher, now placing the total at $89.3 billion — an increase of $6.2 billion, or 7.5%.The upward trend is expected to continue. Analysts project the cost of seniors’ programs will surpass $100 billion annually within the decade, reaching an estimated $108.5 billion by 2030. The growth is being driven both by demographic pressure and inflation indexing of benefits.“The retirement of baby boomers reaching age 65 over the next few decades is projected to increase the expenditure of the program,” Canada’s chief actuary said in an earlier actuarial report on Old Age Security. .Beneficiaries are expected to peak at 10.1 million by 2035.The rising costs come after a demographic milestone already reached in 2023, when seniors outnumbered children in Canada for the first time. That year, there were 7,663,000 seniors compared to 7,471,000 children.The shift is being felt unevenly across the country. Statistics Canada data shows several communities where retirees make up more than a quarter of the population. Parksville, B.C., leads the country, with 44% of residents eligible for Old Age Security. Other high-senior communities include Elliot Lake, Ontario at 39.5%, Cobourg and Wasaga Beach at 34%, and Hawkesbury at 32%.In major cities, Victoria has the highest share of seniors at 23%, followed by Québec City at 22%. Fredericton and Charlottetown sit at 18%, while Ottawa, Halifax and St. John’s are at 17%. Winnipeg records 16.5%, Toronto 16%, Regina 15%, and Edmonton 14.5%.While seniors are often portrayed as financially dependent, federal tax data suggests a significant portion are not. Department of Social Development figures show about 80% of pensioners report annual incomes above $60,000.The same data indicates 352,900 retirees earn more than $100,000 per year, while 206,300 report incomes above $125,000. A further 141,700 pensioners earn more than $150,000 annually.
