How can Ottawa deal with the problems associated with an aging population?

To offset the costs associated with an aging population, governments must act now with policy measures to boost fertility, increase the number of younger immigrants, and encourage people to work longer.

These recommendations come in a report, commissioned by the Conservative government, on the rising cost of health care and retirement benefits in the face of a shrinking number of working-age taxpayers.

"The oldest baby boomers start to turn 65 in 2011, meaning the dependency ratio will start to increase significantly in a matter of months," states the draft report, which was obtained in redacted form by the Globe and Mail under Access to Information.

"A Canada where seniors outnumber children is uncharted territory."

One of the more alarming statistics in the report is the number of senior citizens living in Newfoundland and Labrador. Currently the ratio of workers to seniors in the province is 5:1 — in 2050 that ratio will be 1:1.

To the government's credit, it is already heading in the right direction by attracting younger immigrants.

In March, Immigration Minister Jason Kenney acknowledged the government would reduce the number of family reunification visas for parents and grandparents of newcomers.

"There are trade-offs, and this government is focused on the priorities of Canadians, which are economic growth and prosperity," Kenney stated in Parliament. "We need more newcomers working and paying taxes and contributing to our health care system. That is the focus of our immigration system."

The government, however, needs to do more with regard to increasing Canada's fertility rate, which ranks among the lowest in the Western world. One of the contributing factors to the low birthrate is our nation's policies on maternity and family benefits, which lag behind many other nations.

The report also suggests the government will need to encourage workers to delay retirement by increasing the age eligibility of the Canada pension plan from 65 to 67.

This move may be controversial, but experts argue it needs to be done.

Governments in Canada must tackle the problem of an aging population now, or deal with a much larger, more daunting problem in the not so distant future.

(Photo: Christopher Furlong/Getty)