This report evaluates the extent of the economic risk to society posed by population aging and specifically the baby boom retirement. It emphasizes the need to maintain a healthy economy and fiscal prudence, while still respecting the opportunity and need for people to exercise choice in the best interests of their families, society, and themselves.

The Policy Research Initiative has developed a report on population aging and future labour supply issues, with a focus on encouraging older workers to extend their working lives by delaying or phasing into retirement. The PRI concurs with much of recent OECD analysis, having cooperated in the production of that report. However, the PRI report uses a new analytical instrument (LifePaths) to look in more detail at Canadian labour supply factors. The result is a nuanced analysis tailored to the Canadian context.

Key findings:

• Population aging poses a serious challenge. The work force will begin to decrease, relative to the overall population, starting in 2010.
• However, the increased intensity of the labour force participation of women and an increase in lifetime hours of labour will moderate the
  impact of population aging on the work force.
• A strategy emphasizing fiscal prudence and productivity increases, as well as encouraging increased labour supply, will be important.
• Population aging will present opportunities for older workers to continue to provide labour, and to enjoy greater choices in their life plans.
• The report explores the potential for removing impediments and providing incentives for older workers to extend their working lives.