This article explores the link between income, longevity, and the risk of dependency in older age. It highlights the growing challenge of population aging in Canada and how socioeconomic factors play a significant role in determining life expectancy and the need for long-term care. The findings suggest that wealthier Canadians tend to live longer and are less likely to require nursing home care, while lower-income individuals face a higher risk of dependency. The article recommends that policymakers consider redistributive policies to ensure a more equitable and sustainable long-term care system in Canada.
The Longevity Divide: How Income Impacts Life Expectancy
Population aging is a growing challenge for developed countries like Canada, with significant implications for healthcare and long-term care systems. In OECD countries, the population of people aged 80 and above is projected to more than double by 2050, reaching 9.8% of the population. This demographic shift highlights the increasing demand for high-quality long-term care services.
Research has shown that while life expectancy has increased overall, it’s unevenly distributed across socioeconomic groups. Factors such as age, ethnicity, gender, income, and education play a significant role in determining longevity. In Canada, men in the top 5% of earners live, on average, 11% longer than those in the bottom 5%. For women, the longevity gap between those with the highest and lowest earnings is 3.6 years. These findings are consistent with research from other countries, including the United States.
The Wealth-Dependency Relationship: Implications for Long-Term Care
Understanding the relationship between income and loss of autonomy is crucial for shaping public policy and identifying the most vulnerable groups. Some studies suggest that lower socioeconomic status is associated with poorer health outcomes and higher disability rates among older adults. In the United Kingdom and the U.S., individuals in the bottom third of the wealth distribution live seven to nine fewer years without disability compared to those in the top third. Similarly, in Europe, less wealthy individuals have a higher likelihood of becoming dependent and they remain dependent longer.
The findings from the research explored in this article show that Canadians with higher incomes are more likely to live to age 85 and are less likely to become dependent. A 1% increase in income was associated with a 2% increase in the likelihood of living to age 85 and a 3% decrease in the likelihood of developing limitations in daily living activities. The relationship between income and dependency was particularly strong among individuals in the top third of the income distribution.
Designing Equitable Long-Term Care Policies: The Role of Redistribution
The socio-demographic relationships from this study have important implications for designing equitable long-term care policies. Wealthier individuals tend to live longer and are less often dependent, meaning they are in a better position to pay for long-term care expenses. On the other hand, low-income individuals are more likely to become dependent and may experience greater financial strain if they need to pay for long-term care costs over an extended period, potentially driving them into poverty.
The findings recommend that provincial and territorial governments should adopt redistributive policies for long-term care. These policies could involve providing additional subsidies aimed at low-income older individuals, either as a preventive measure or when they first become dependent. Designing policies that recognize these disparities can help ensure a more equitable and sustainable long-term care system in Canada.
