Actually, once you reach 65, you would not be on welfare. You would be on basic pension + Income supplement which these days is around $1300 a month if you don't have any other income.
... and to be perfectly honest, yes you can live okay on that money, but probably not in Toronto.
Hamilton, for example, is full of retirement homes for people in just that situation. I checked a pretty decent 1 bedroom apartment in First PLace Hamilton (link below) which after all the subsidies government kicks in would cost you around $400 a month or less.
http://www.firstplacehamilton.ca/