About the Calculator:
Canadians typically plan for retirement with the goal of maintaining their pre-retirement standard of living. However, retirement often spans several decades, during which a person’s circumstances—and the costs associated with maintaining that standard of living—can change dramatically.
Over time, factors such as health, living arrangements, family composition and location can significantly affect day-to-day expenses, sometimes increasing costs in ways that are difficult to anticipate in advance. Whether someone is a high-earning corporate executive, a small business owner or a homemaker, the underlying challenge is the same: how to plan for a future shaped by uncertainty and evolving needs.
That is where the Cost of Ageing (COA) Calculator comes in. The COA Calculator is an online tool that assesses the cost of ageing across Canada by estimating key retirement expenses related to food, housing, transportation and home care. By accounting for personal characteristics such as health status, place of residence and household composition, the tool provides evidence-based information to help individuals, professionals, academics and decision-makers better understand the financial dimensions of ageing and retirement in Canada.
Methodology
Building on and enhancing the Canadian Elder Standard (CES)—an academic metric developed by Dr. Bonnie-Jeanne MacDonald over a decade ago—the COA methodology is designed to provide a nuanced and personalized assessment of retirement living standards. Recognizing the unique nature of every individual, the approach tailors estimates to key personal characteristics, including health status, location and household composition.
A distinctive feature of the methodology is the integration of a broad and uniquely assembled set of data sources, developed through a multi-year research effort led by He Chen, Senior Researcher at the National Institute on Ageing, who oversaw data collection, methodology development and technical implementation of the COA Calculator. The COA draws on financial, housing, health care and lifestyle data from municipal, provincial and federal levels, along with non-governmental sources. Much of this information—particularly relating to ageing- and care-related costs—was not previously available in a single framework and required original data gathering.
The methodology reflects a sustained program of research involving more than 2,000 research hours, developing 11 tailored modelling approaches and engaging with nearly 100 organizations across Canada. It is informed by input from retirees, financial experts and health care professionals, ensuring the estimates reflect real-world experiences as well as empirical evidence. By synthesizing data from multiple perspectives, the COA provides a comprehensive view of the dynamic and evolving factors that shape retirement costs.
Project Team
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Bonnie-Jeanne MacDonald
Director of Financial Security Research;
Conceptual Lead and Principal Investigator, COA Calculator
Bonnie-Jeanne MacDonald, PhD FCIA FSA, is the Director of Financial Security Research at the National Institute on Ageing (NIA), Toronto Metropolitan University. She is also a Fellow of the Society of Actuaries, a Fellow of the Canadian Institute of Actuaries, and the resident scholar at Eckler Ltd. Her research focuses on the financial and health aspects of Canada's ageing population. Bringing together leading industry experts and building on academic best practices coupled with innovative ideas, her work aims to improve retirement financial security for Canadians through practical insights, industry innovations and government solutions.
She has published numerous academic papers on a wide variety of topics relating to retirement financial security for Canadians. Her research contributions have received numerous awards and have been adopted by industry and government, in Canada and around the world. She is a prolific keynote speaker at industry and public policy engagements and a regular contributor to the Globe and Mail. A recipient of the 2001 Gold Medal in Actuarial Science at the University of Western Ontario, Bonnie-Jeanne received her FSA in 2004 and FCIA in 2019, and also holds a PhD in Actuarial Mathematics from Scotland's Heriot-Watt University. In 2011, she was chosen one of Canada's top young economists and attended the Lindau Nobel Laureate Meeting in Germany.
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He Chen
Senior Researcher;
Lead for Data Integration, Methodology Development and Tool Implementation, COA Calculator
He Chen, FRM, is a Senior Researcher at the NIA, where he led the end-to-end design and implementation of the COA Calculator, transforming it from a research concept into a live, data-driven tool.
He has consulted for multiple large pension plans, including Ontario Teachers’ Pension Plan (OTPP) and the Healthcare of Ontario Pension Plan (HOOPP). With over a decade of experience spanning the hedge fund, banking, consulting, and pension plan industries, he brings deep expertise in capital markets and retirement systems.
He holds a Master of Mathematics in Actuarial Science and a Bachelor of Mathematics in Actuarial Science & Statistics from the University of Waterloo. He has co-authored multiple publications and reports on retirement financial security and education.
In addition to his research and consulting work, He mentors new graduates and young financial professionals, helping them develop the skills needed to thrive in the industry.
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Alyssa Hodder
Senior Researcher;
Lead for Public Engagement, COA Calculator
Alyssa Hodder is a Senior Researcher with the NIA, responsible for accelerating the public release and early growth of the Cost of Ageing (COA) calculator, while strengthening Pension Centre of Excellence (PCE)-related research capacity and funding opportunities and supporting the growth and enhancing the visibility of the work from the NIA’s Financial Security Department.
With more than 20 years of industry experience, her prior roles have included Director of Education and Outreach—Canada with the International Foundation of Employee Benefit Plans; Senior Communications Consultant with Eckler Ltd., providing communications support to public sector, corporate, not-for-profit, trusteed and multi-employer plans; and Director of the Knowledge Resource Centre at Buck Consultants. She also spent many years as Editor/Managing Editor of Benefits Canada magazine, with overall responsibility for its print and online editorial operations.
Alyssa earned her Master and Bachelor of Arts degrees (hons) from Queen’s University in Kingston, Ontario as well as her Group Benefits Associate (GBA) designation from the International Foundation. She has also successfully completed the Canadian Securities Course.
Acknowledgements
The Cost of Ageing (COA) Calculator is the product of substantial collaborative effort, drawing on contributions from many individuals and organizations.
We would like to thank Sam Zhang and Kathryn Peterson for their research support, including assistance with data collection, validation and background analysis. We are also grateful to Dr. Samir Sinha, Gareth Gibbins, Doug Chandler, Barbara Sander, Danny Martin and members of the Pension Centre of Excellence (PCE) for their thoughtful feedback, insights and practical perspectives, which helped to inform and refine the tool.
We further thank the many organizations and experts across Canada who shared information, data and contextual knowledge during the research process. Their willingness to engage was essential to assembling the evidence base underlying the COA Calculator.
This initiative was made possible through seed funding from the Peterson Foundation, as well as funding from the Canadian Investment Regulatory Organization (CIRO). Bonnie-Jeanne MacDonald, He Chen and the entire National Institute on Ageing team gratefully acknowledge this support, without which the development of the COA Calculator would not have been possible.
About the NIA:
Founded in 2016, the National Institute on Ageing (NIA) is celebrating a decade of impact in our mission to improve the lives of older adults and the systems that support them. Over the past 10 years, the NIA has become Canada’s leading voice on ageing policy — convening stakeholders, conducting research, advancing policy solutions and practice innovations, sharing information and shifting attitudes.
Our vision remains clear: a Canada where older adults feel valued, included, supported and better prepared to age with confidence.