Aging workforce to drive up debt
Federal officials in Canada announced to the public yesterday that legislators are concerned about the aging work population of the country, where baby-boomers (as in the US) are getting set to retire. The report said that the proper financial structure is not in place to deal with the surge in retirees and that some 'difficult choices' will need to be made. Recovery measures currently on the table include spending cuts and increased taxes. Officials say they will wait until after the Canadian economy recovers more from the financial crisis, but can afford to wait too long, as each passing month will make the solution more expensive. The cost of dealing with the retiree surge is estimated at $20 billion right now, but officials believe that every year longer they wait could add another $1 billion in costs and spending cuts.
See "Aging workforce to drive up debt", Bruce Campion-Smith, Toronto Star, February 18, 2010