Market Trends of Canada Pension Fund Industry
Increase in Inflation affecting Canada Pension funds Market
As people reach retirement age and have no income left, the value of their usual savings declines as the real value of commodities increases. The inflation rate in Canada is observing a continuous increase, reaching a level of 6.8% currently, with global market volatility and supply chain disruptions showing their effect.
As the inflation rate increases, people without access to a regular source of income become more vulnerable, causing a decline in purchasing power. To be saved from these scenarios, people are investing in the pension fund market to have a continuous source of income to buy commodities even after retirement.
Change in demographics affecting Canada Pension Funds Market
The share of people aged over 65 years has observed a continuous increase, reaching a level of 18.83% currently. Other than this, Canada's maximum number of inhabitants is 45 to 64 years old, covering a population of almost 10.1 million people, signifying that a continuous growth in people over 65 will be increasing in the future.
A majority of pension funds exist for people who have retired from working and need a source of money for their retirement expenses. This demographic trend in the market creates an opportunity for Canada to grow its pension fund market.
