Low net worth increases risk of poor health among Quebec retirees: study

Retirees who have accumulated little net worth are at increased risk of poor health, according to a study by the Quebec observatory on inequality (OQI) published Tuesday.

The study, conducted in 2025 and 2026, was based on an analysis of Statistics Canada data as well as qualitative data obtained from 20 semi-structured interviews with Quebec seniors and more than a dozen people who work with the elderly.

Net worth is defined as the sum of a person’s assets minus their debts.

The relationship between income and health has already been well established by previous studies, but the link to net worth has been much less well documented. The study reveals that better overall health is associated with high net worth, as indicated by the combination of home ownership and having a private pension plan as the household’s primary source of income. Conversely, low net worth is linked to poorer health, notably a tendency to be more affected by chronic diseases.

Among families with at least one older adult who is the primary breadwinner, those in the top 10 per cent had, on average, 32 times more net worth than families in the bottom 40 per cent.

Skipping the dentist

People with low net worth are more likely to report poor or fair health. They also report unmet health needs, despite Quebec’s public health care coverage. This forces them to make difficult choices to make ends meet, such as cutting back on food, transportation, or even foregoing medical care.

“ “There are certain aspects of coverage that are missing and that are just as important in retirement,” explains Christian Girard, a researcher at the OQI and author of the study. “Think about dental care, medications, hearing care, vision care, and certain health professionals, such as physical therapists and psychologists—things like that. None of that is fully covered.”

“My teeth—I’d forgotten about that. Even with the Canadian program. I can’t even afford the deductible,” says a woman in the lowest income and wealth quintile who is quoted in the study. The Canadian Dental Care Plan, which began rolling out in December 2023, helps cover part of the cost of oral health services for certain segments of the population.

“When it comes to retirement savings, we know that this affects some people more than others. For example, women, immigrants, people with disabilities, those who have received last-resort financial assistance, self-employed individuals, and family caregivers. All of these people may often have been more severely impacted in terms of their ability to work and save, and may have experienced gaps in employment, which will affect their retirement,” explains Girard.

These individuals may find themselves doubly penalized due to limited contributions to the Quebec Pension Plan (QPP) and the Registered Retirement Savings Plan (RRSP).

In fact, the retirement system is based on three pillars. The first is at the federal level, which is determined by the number of years lived in Canada after the age of 18, says Girard.

The second pillar, the RRQ, is administered by the province and is tied to earnings. “So, for anyone who has had career breaks, illnesses, work-related disabilities, or who—for various reasons—hasn’t worked full-time their entire life, well, that’s going to have an impact down the road,” says Girard.

The final pillar is net worth. This includes personal savings, RRSPs, TFSAs, and employer-sponsored pensions. “We rely on these to supplement retirement income,” says Girard. And we expect them to be “a significant component,” he adds. Thus, anything that prevents a person from building or maintaining wealth will affect their ability to meet their needs.

Less wealth, more isolation

Girard points to a blind spot in the system that the OQI believes needs to be corrected. People receiving financial assistance as a last resort are required to prove that it truly is a last resort. They are allowed to keep a certain amount of capital, but they must deplete most of it to qualify. “But once they reach retirement age, they’re told, ‘Oh, but you should have saved and you should have had assets because our retirement system is based on three pillars, and it relies on the fact that one of those three is the assets you have—but now you no longer have them,’” summarizes Girard.

Furthermore, the impact of wealth is also reflected in loneliness, as people with less wealth have fewer financial resources to get around and participate in various social activities. It is well established in the scientific literature that isolation has negative effects on the health of older adults. The study indicates that feelings of loneliness affect 40.2 per cent of older adults in the lowest income quintile, compared to 24.1 per cent of older adults in the highest income quintile.

The OQI’s study makes several recommendations to improve the situation. Prior to retirement, it proposes increasing coverage under employer-sponsored pension plans. “There has been a significant decline,” says Girard. “For example, defined-benefit supplemental pension plans—where you know exactly how much you’ll receive in retirement—have dropped in Canada from 44 per cent to 26 per cent.”

Once retired, the report recommends increasing the Guaranteed Income Supplement to help the least well-off members of our society meet their needs. It also recommends improving direct healthcare assistance to cover dental care, vision care, and other health services not covered by the public system.

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The Canadian Press’s health coverage is supported by a partnership with the Canadian Medical Association. The Canadian Press is solely responsible for this journalistic content.

–This report by La Presse Canadienne was translated by CityNews

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