Study: Sources of income of racialized individuals 65 years and over in Canada, 2020
Released: 2025-02-03
According to the 2021 Census of Population, 14% of people aged 65 years and over in Canada are part of racialized groups, while the proportion of the total Canadian population belonging to racialized groups is 25%. Although the 65-and-over population is increasing, this growth is especially pronounced among racialized groups. From 2016 to 2021, racialized populations aged 65 and over grew by 38%, a faster rate than for non-racialized populations in that same age group, which grew 18% over the same period. Given the significant growth of racialized populations aged 65 and over, a better understanding of the economic situation of racialized individuals at retirement age can help inform program and policy development for racialized populations.
Based on the 2021 Census, today Statistics Canada is publishing a new study, titled "Sources of income of racialized individuals 65 years and over in Canada, 2020," which examines the disparities in sources of income of individuals aged 65 and over—the age group usually associated with retirement—with particular focus on the situation of different racialized groups. Older racialized adults are a highly diverse group, primarily made up of South Asian, Chinese, Black, Filipino, Arab, Latin American, Southeast Asian, West Asian, Korean, and Japanese individuals.
In 2020, racialized individuals aged 65 and over had fewer varied sources of income than their non-racialized counterparts
With the exception of the Japanese populations, racialized individuals aged 65 and over generally had less retirement income than their non-racialized counterparts in 2020. For example, 38% of racialized individuals aged 65 and over had private retirement income, compared with 66% of non-racialized individuals in that same age group. In addition, the median private retirement income of racialized individuals aged 65 and over ($11,000) was lower than that of older non-racialized people ($17,400). Moreover, 65% of older racialized individuals had market income, with a median income of $14,300, compared with 85% of older non-racialized individuals (with a median income of $21,400). The trends are similar for Quebec Pension Plan (QPP) and Canada Pension Plan (CPP) benefits: 72% of older racialized people received these benefits, with a median income of $5,280, compared with 94% of older non-racialized individuals, whose median income was $8,600.
Chart 1
Proportion of racialized groups and the non-racialized population aged 65 and older receiving different income sources in Canada in 2020
Chart 2
Median income for racialized groups and the non-racialized population aged 65 and older receiving different income sources in Canada in 2020
Among racialized individuals aged 65 and over, Japanese individuals were most likely to have private retirement income and investment income
Among racialized individuals aged 65 and over, the Japanese populations stood out for having higher private retirement income. Almost three-quarters (74%) of older Japanese individuals had this type of income in 2020, with a median private retirement income of $17,200. They were also most likely to have investment income. In fact, just over two-thirds (67%) had investment income, with a median amount of $2,920.
This was followed by the Black populations, who had the second-largest proportion of older racialized individuals with private retirement income (48%). By contrast, older West Asians (15%) and Arabs (24%) had the lowest proportions of private retirement income.
In both racialized and non-racialized groups, men aged 65 and over generally had higher income than women in the same age group
In 2020, racialized men aged 65 and over were generally more likely to have higher income than racialized women in the same age group for different sources of income, such as market income, employment income and QPP and CPP benefits. These gender disparities were common among racialized populations, although some groups showed the opposite trend. For example, Japanese women aged 65 and over had a median investment income of $3,020, compared with $2,660 for men in the same age group, and older Chinese women had a median investment income of $2,720 compared with $2,500 for older Chinese men. Lastly, among all racialized groups, older Filipino women ($11,700) were the only ones to have higher private retirement income than older men in their racialized group ($10,900).
Similar trends also existed among older non-racialized individuals in 2020, with men aged 65 and over generally having higher incomes than women in the same age group, except for employment income (median income of $6,950 for women compared with $6,500 for men).
Chart 3
Proportion of racialized groups aged 65 and older receiving different income sources in Canada in 2020
Chart 4
Median income for racialized groups aged 65 and older receiving different income sources in Canada in 2020
The study shows that in 2020, racialized individuals aged 65 and over had lower retirement income than older non-racialized individuals, mainly due to the fact that a lower proportion had private retirement income, investment income and government benefits. In addition, among racialized individuals, women aged 65 and over generally had lower income than men in several income categories.
Although income experiences vary from one racialized group to another, a number of factors can account for the disparities in access to different sources of income for racialized individuals aged 65 and over in Canada, such as immigration and wage gaps. Racialized individuals, who are often part of immigrant populations, might not have had the opportunity to save before they came to Canada. This makes them more likely to encounter difficulties in building resources for retirement due to pension-related requirements. In addition, although these people have high levels of education, they are often faced with barriers and discrimination, with many reporting unfair treatment in the workplace. These barriers can limit their access to better-paying jobs and retirement plans, potentially contributing to the disparities in retirement income observed between older racialized and non-racialized adults. Future research could explore these issues more in-depth.
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Note to readers
This study uses microdata from the 2021 Census of Population long-form questionnaire (around 25% of the population). The detailed questionnaire provides comprehensive sociodemographic information for a very large representative sample of the national population.
In the 2021 Census of Population, the reference period for all income variables is the 2020 calendar year.
The study uses an intersectional approach, taking into consideration age group, gender and generational status.
Data on racialized groups are measured using the "visible minority" variable from the Census of Population. Under the Employment Equity Act, visible minorities are defined as "persons, other than Aboriginal peoples, who are non-Caucasian in race or non-white in colour." The visible minority population consists mainly of the following groups: South Asian, Chinese, Black, Filipino, Arab, Latin American, Southeast Asian, West Asian, Korean and Japanese. For more information on how to effectively use and interpret data on visible minorities and population groups from the 2021 Census, please refer to the Visible Minority and Population Group Reference Guide, Census of Population, 2021.
All the data in this release cover individuals aged 65 years and over.
For the purposes of this release, the category "women+" includes women as well as some non-binary persons, while the category "men+" includes men as well as some non-binary persons.
The median incomes reported are median values; that is, the incomes are divided into two equal parts, with half below the median and the other half above the median. Median incomes of individuals are calculated for those with an income (positive or negative).
For the purposes of this release, the Indigenous populations and non-permanent residents are not included in the analysis.
In the study, the sources of income examined include employment income, market income, private retirement income, Quebec Pension Plan and Canada Pension Plan benefits, and investment income. For more information, see the Dictionary, Census of Population, 2021.
Products
The analytical paper "Sources of income of racialized individuals 65 years and over in Canada, 2020," which is part of the Ethnicity, Language and Immigration Thematic Series (89-657-X), is now available.
The infographic entitled "A look at income sources of racialized individuals 65 years and over in Canada, 2020" is now available in the Statistics Canada – Infographics series (11-627-M).
Contact information
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).
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