TORONTO – More than three-quarters of approaching or pre-retirement Canadians worry about their finances as more Canadians plan to age at home for as long as possible, a new poll has found.
Ryerson University’s National Institute on Aging (NIA) survey,conducted in conjunction with HomeEquity Bank, found that 77 percent of Canadians aged 55 to 69 are worried about their financial health.
What’s more, 79 percent of respondents aged 55 and over revealed that their retirement income – through RRSPs, pensions and Old Age Security – will not be enough to be a comfortable retirement.
“Figuring out where to live and receive care as we age has been a particularly neglected part of financial planning for retirement,” said Dr Samir Sinha, director of health policy research at the NIA, in a commentary. Press release.
“These are vital considerations that can also be costly. With the vast majority of Canadians expressing their intention to age at home, within their communities, it is essential that we find financial and health care solutions to make this option comfortable, safe and secure.
While the COVID-19 pandemic has exposed some shortcomings in the long-term care system, 44% of respondents plan to age at home, but many do not fully understand the costs involved, the study notes.
Almost half of respondents aged 45 and over think that home care for themselves or a loved one would cost about $ 1,100 per month, while 37% think it would cost about $ 2,000 per month.
In fact, it costs about $ 3,000 per month to provide home care comparable to that of a long-term care facility, according to the Ontario Ministry of Health.
Bonnie-Jeanne MacDonald, director of financial security research at the NIA, said it’s important for Canadians to understand the true costs of aging as they plan for their future.
“Canadians who retire today are likely to face longer and more expensive pensions than their parents.
To help with their financial future, the researchers suggest that Canadians should delay the payment of any Canada Pension Plan or Quebec Pension Plan payments, as monthly payments increase with the year of the deferral. For example, a person receiving $ 1,000 per month at age 60 would receive $ 2,218.75 per month if they wait until they are 70 to start collecting.
Researchers also suggest leveraging home equity and purchasing private long-term care insurance as ways to help with financial stability for years to come.
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