The Impact of Gender and Immigration on Pension Outcomes in Canada

Abstract

This paper analyzes Canadian retirement incomes by focusing on the dynamics of gender and immigration. We demonstrate that elderly women living alone and post-1970 immigrants are more likely to rely on the means-tested component of Canada's pension system, the Guaranteed Income Supplement (GIS), which is an indication of their restricted capacity to maintain an autonomous household. The strong reliance of the Canadian pension system on both public and private earnings-related pensions accentuates the disparities within the labour market, causing both women and immigrants to have lower earnings in retirement. In addition, immigrants suffer from the residency requirements attached to basic pension programs.