Financial and administrative complexities add extra burden to caregiving challenges
Millions of Canadians are already caring for aging parents or in-laws or expect to do so in the years ahead. But how prepared are they for this extra responsibility?
One third of respondents to a new survey from Simplii Financial said they are already doing so and more than half believe they will do within the next five years but less than four in ten say they have the necessary documentation to manage their relative’s affairs with a similar share having discussed finances with them comprehensively.
The costs of caregiving – such as day-to-day expenses, healthcare, long-term care, in-home care, and home upkeep - can add significant burden to finances with most poll participants reporting at least $5,800 in out of pocket expenses annually, but as much as $25,000 for some.
Additionally, the extra responsibility can harm career prospects (24% said this) and result in sacrificed income (23%). A third of respondents believe the cost of caregiving will have an impact on their own children at some point.
"As Canada's population ages, younger Canadians are increasingly juggling the demands for supporting aging parents, managing their own finances, and adapting to a changing workforce," says Carissa Lucreziano, CIBC's Vice-President of Financial Planning and Advice, speaking on behalf of Simplii Financial. "With the first wave of baby boomers turning 80 next year, these pressures will only grow, making proactive financial management and planning more important than ever."
Recently, Louise Fry, an investment advisor with TD Wealth in Vancouver, shared her thoughts on caregiving, specifically for mothers who are most likely to be balancing caring for their own children and their parents.
“I personally have an aging parent who often needs care and financial support, and two kids who are about to start post-secondary education,” she says. “It’s an incredibly rewarding position to be in, but is also extremely demanding, and my experience helps to inform the advice that I give to female clients every day.”
