2008 General MeetingAssemblée générale 2008

Toronto, Ontario

2008 General MeetingAssemblée générale 2008

Toronto, Ontario

Canadian Institute

of Actuaries

Canadian Institute

of Actuaries

L’Institut canadien desactuaires

L’Institut canadien desactuaires

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Basic Living Expenses for the Canadian ElderlyBasic Living Expenses for the Canadian Elderly

• What?– Absolute threshold tailored to the elderly

• Who?– Bonnie-Jeanne MacDonald, Doug Andrews

and Robert L. Brown

• Why? – Requested by the CIA

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Basic Living Expenses for the Canadian ElderlyBasic Living Expenses for the Canadian Elderly

• “Poverty Measures” in Canada– Low Income Cut-Off (Stats Canada)– Low Income Measure (Stats Canada)– Market Basket Measure (Human Resources

and Social Development Canada)– Sarlo’s Basic Needs Poverty Line (Chris

Sarlo)

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Basic Living Expenses for the Canadian ElderlyBasic Living Expenses for the Canadian Elderly

• Objectives– US Elder Standard

Basic Living Expensesversus

Independent Economic Security

– “Age in Place”

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Basic Living Expenses for the Canadian ElderlyBasic Living Expenses for the Canadian Elderly

• Threshold Components– Food– Shelter– Medical– Transportation– Home-Based Long-Term Care

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Basic Living Expenses for the Canadian ElderlyBasic Living Expenses for the Canadian Elderly

• Major Data Sources:– Health Canada’s National Nutritious Food

Basket– Canada Mortgage and Housing Corporation– Stats Canada Survey of Household Spending– Canadian Census– Stats Canada Participation and Activity

Limitation Survey– MBM and the Elder Standard

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Basic Living Expenses for the Canadian ElderlyBasic Living Expenses for the Canadian Elderly

HalifaxHalifaxMontrealMontreal

TorontoToronto

VancouverVancouverCalgaryCalgary

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Basic Living Expenses for the Canadian ElderlyBasic Living Expenses for the Canadian Elderly

• Different “Tracks”– Housing

• tenant, homeowner with a mortgage, homeowner without a mortgage

– Transportation • public transportation, private automobile

– Age • 65-74, 75+

– Household Size and Gender • single male, single female, couple

– Home-Based Long-Term Care Assistance• none, low, high

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Basic Living Expenses for the Canadian ElderlyBasic Living Expenses for the Canadian Elderly

• Example– Male Torontonian

• 65 Years-Old• Owns His Home• Relies on Public Transportation• No Home-Based Long-Term Assistance

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Basic Living Expenses for the Canadian ElderlyBasic Living Expenses for the Canadian Elderly

• $11,616 • Renter: $17,463 • Mortgage: $23,625• Mortgage & Car: $26,184• Mortgage & Car & Low Level LTC:

$27,173• Mortgage & Car & High Level LTC:

$39,135

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Basic Living Expenses for the Canadian ElderlyBasic Living Expenses for the Canadian Elderly

• “Typical” Elderly Threshold– 65-74 years old– Drives a five year-old Chevrolet– Homeowner (without a mortgage)– Low Home-Based Long-Term Care

Assistance

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Basic Living Expenses for the Canadian ElderlyBasic Living Expenses for the Canadian Elderly

• Halifax Single– Sarlo < LICO < LIM < Typical ET < MBM

• Montreal Single– Sarlo < MBM < LIM < Typical ET < LICO

• Toronto Single– Sarlo < LIM < Typical ET < MBM < LICO

• Calgary Single– Sarlo < LIM < Typical ET < MBM < LICO

• Vancouver Single– Sarlo < LIM < Typical ET < MBM < LICO

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Basic Living Expenses for the Canadian ElderlyBasic Living Expenses for the Canadian Elderly

• Halifax Couple– Sarlo < LICO < LIM < Typical ET < MBM

• Montreal Couple– Sarlo < LIM < MBM < LICO < Typical ET

• Toronto Couple– Sarlo < LIM < LICO < Typical ET < MBM

• Calgary Couple– Sarlo < LIM < LICO < Typical ET < MBM

• Vancouver Couple– Sarlo < LIM < LICO < Typical ET < MBM

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Basic Living Expenses for the Canadian ElderlyBasic Living Expenses for the Canadian Elderly

• Halifax Single– Sarlo < LICO < LIM < MBM < Typical ET*

• Montreal Single– Sarlo < MBM < LIM < LICO < Typical ET*

• Toronto Single– Sarlo < LIM < MBM < LICO < Typical ET*

• Calgary Single– Sarlo < LIM < MBM < LICO < Typical ET*

• Vancouver Single– Sarlo < LIM < MBM < LICO < Typical ET*

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Basic Living Expenses for the Canadian ElderlyBasic Living Expenses for the Canadian Elderly

• Halifax Couple– Sarlo < LICO < LIM < MBM < Typical ET*

• Montreal Couple– Sarlo < LIM < MBM < LICO < Typical ET*

• Toronto Couple– Sarlo < LIM < LICO < MBM < Typical ET*

• Calgary Couple– Sarlo < LIM < LICO < MBM < Typical ET*

• Vancouver Couple– Sarlo < LIM < LICO < MBM < Typical ET*

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Basic Living Expenses for the Canadian ElderlyBasic Living Expenses for the Canadian Elderly

• Halifax Typical Elderly Threshold– $13,315 (Single) $18,848 (Couple)

• Montreal Typical Elderly Threshold– $13,945 (Single) $19,579 (Couple)

• Toronto Typical Elderly Threshold– $14,913 (Single) $19,998 (Couple)

• Calgary Typical Elderly Threshold– $13,862 (Single) $19,512 (Couple)

• Vancouver Typical Elderly Threshold– $13,618 (Single) $20,200 (Couple)

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Basic Living Expenses for the Canadian ElderlyBasic Living Expenses for the Canadian Elderly

• “No Assets” Elderly Threshold– 65-74 years old– Relies on Public Transportation– Rents– Low Home-Based Long-Term Care

Assistance

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Basic Living Expenses for the Canadian ElderlyBasic Living Expenses for the Canadian Elderly

• Halifax No Assets Elderly Threshold– $13,468 (Single) $18,627 (Couple)

• Montreal No Assets Elderly Threshold– $12,335 (Single) $17,432 (Couple)

• Toronto No Assets Elderly Threshold– $18,202 (Single) $23,614 (Couple)

• Calgary No Assets Elderly Threshold– $14,948 (Single) $19,922 (Couple)

• Vancouver No Assets Elderly Threshold– $16,335 (Single) $21,759 (Couple)

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Basic Living Expenses for the Canadian ElderlyBasic Living Expenses for the Canadian Elderly

• Wrap-Up