Retirement Income for Canadian Retirees Maintained at 80 Percent of Pre-Retirement Income

Based on income levels, most Canadians are maintaining their lifestyles during retirement years, according to figures released by Statistics Canada in early March 2008.

Statistics Canada found that on average, a Canadian at the age of 75 received 80 per cent of the income they were earning at the working age of 55.

The study also found that retire income varied based on level of income during the individual's working years.

The lowest income individuals maintained nearly 100 per cent of their disposable income in their retirement years, mostly because of income from government programs.

"Lower income workers (those in the bottom 20 per cent of the income distribution) experienced little change in income as they moved from the age of 55 through the retirement years. This was largely because of the income maintenance impact of the public pension system," said the study.

"Better-off workers in the top 20 per cent of the income distribution experienced substantial declines in income by time they were 75."

The figures showed that on average, the more disposable income a person had at 55, the lower the portion of income that was replaced in retirement. For those in the top 20 per cent of income distribution at 55, on average, 70 per cent of their income was replaced during their 70s.

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