Financial planning may be missing a vital component of retirement expenses
Much has been said about the changing face of Canadian retirees - typically more active and living longer than previous generations – and this includes their living requirements.
A new survey finds that the expectation of moving from the home they love is not part of the plan with 90% of respondents preferring to stay at home and receive long-term care if necessary, rather than moving into a long-term care facility.
The Ipsos research for HomeEquity Bank asked more than 1000 Canadians aged 45+ about their retirement aspirations and also found that 82% would only consider assisted living if affording in-home care wasn't an option.
But can they afford to stay in their own homes, if they have to fund the cost of a Personal Support Worker?
The poll found that just 13% have thought about including this potential cost in their financial planning and just 6% have included it in a plan and can afford it. Most do not realise that it can cost between $19 and $75 per hour.
"Our research underscores a clear desire for Canadians to stay in their homes with access to in-home care. With limited retirement income, whether its savings locked in your home equity, pensions or drawing down on investments, Canadians could benefit from increased awareness and proactive planning, says Yvonne Ziomecki-Fisher, Chief Customer, Brand and Advice Officer at HomeEquity Bank.
Ziomecki-Fisher says there has been an increase in inquiries about tapping into home equity to fund in-home care in retirement.
While inflation has been in focus for the last few years, the cost of healthcare has been rising significantly even before then. Last year, Neela White, senior portfolio manager at Blue Wing Advisory Group with Raymond James Ltd., told Wealth Professional that Canadians need to plan for this.
“Even before the increases in interest rates and inflation, healthcare was one of those sectors that consistently increased year over year, whether it was the cost of medication, the cost of care, or the cost of retirement living,” she said.
