The beginning of the new millennium seems a good time to reflect upon issues in gerontology as many Western countries are experiencing population ageing and the challenges it entails. In comparison to Europe's 14 per cent average (Population Reference Bureau 2000), Canada is a relatively young country with only about 12 per cent of the population over age 65 (Statistics Canada 1999). Nonetheless, population ageing is a driving force in Canadian gerontology. In this paper we discuss current thinking in gerontology in Canada and how it reflects our approaches to research and development of public policy. We begin with an overview of national policy and research perspectives. We provide examples of research programmes addressing key issues: population ageing and the welfare state, rethinking independence, and quality of life issues from the Canadian perspective. Finally, we discuss the values that provide the context for the development of approaches to funding which affect the scope and direction of our research. Information sources include national policy documents, recent publications by Canadian gerontologists, and articles from the Canadian Journal on Aging 1998–2000.