Five health care costs to consider in your financial and retirement plans

People don't often think about the costs of getting older. When a loved one needs care or you need help, the size of these costs can be shocking.

It's hard for people in their 50s to understand care problems that might happen to them 20 or 30 years from now. Then, all of a sudden, one of their parents is in a situation they may not have planned for, and they have to rush to do what needs to be done.

But what is the plan B? How does a backup care plan affect your money?

Here are the top five prices of care to think about when planning for your financial future so you can be better prepared for retirement and the unknowns of getting older:

1. The price of care at home

Not everyone is eligible for government-funded home care, and people don't always get the hours or amount of care they want.

"When people ask me, 'How much should I save for private home care?' "I'll say, 'That's not easy to answer because your care needs can change overnight. It's one thing if you need someone to help you for four hours a day with things like light shopping, making a meal, and cleaning. But if you have a stroke or need to be turned over in bed every three hours, that's care 24 hours a day, 7 days a week.

If someone needs care at home for eight hours a day, 365 days a year, it could cost more than $100,000. This doesn't include paid breaks. That's because a personal care worker in Ontario makes an average of $35 per hour, and costs are going up as demand increases.

2. How much it costs family carers, both financially and mentally

If you needed care in the future, would you have to rely on a loved one or family member? Think about how it will affect the lives of the people who care for the person.

Statistics Canada says that one in four Canadians aged 15 or older care for a family member with a long-term illness, disability, or problem linked to getting older. Nearly half said they mostly cared for their parents or parents-in-law.

The cost of care is not just financial; it's also emotional for the carer. Together, they made several educational videos about healthy ageing, which included tips on how to keep carers from getting tired of their jobs.

Family can't always take care of everything. They also have other jobs. It's hard on the body and the mind. Unpaid carers may have to pay for lost wages or missed job chances.

3. How much it costs to fix up your house so you can stay there as you get older

Most retirees want to age at home as much as possible. A National Institute on Ageing and TELUS Health study found that nearly all Canadians aged 65 and up want to stay in their own home as long as possible.

To account for future health changes, a renovation could include aspects of universal design. These make the space safe and easy for everyone, regardless of age, ability, or other factors. Some examples are shower stalls without curbs or walls that are strengthened to hold grab bars. As costs add up, it may not be possible to repair.

4. The price of care in a private home

Private retirement homes range from high-end condos with white-glove service and many features to simple senior communities. Many offer nursing and personal care 24 hours a day, paid for as needed, and care for people with dementia.

5. The cost, from a scientific point of view, of living longer

In 2021, a record amount of Canadians turned 100 or older. This was not just because the population was growing. Statistics Canada says that in 1971, five out of every 100,000 Canadians were 100 or older. By 2021, that number rose to 26 out of every 100,000.

Your financial plans and investments should cover all of your wants for the rest of your life, if possible.

You have to have the money to get there and pay for care. But that's why planning is done in the first place. If a gap is expected, now is the time to figure out what to do to reach your goal.

Colleen Lemieux is a Wealth Advisor with Aligned Capital Partners Inc. (“ACPI”). The opinions expressed are those of the author and not necessarily those of ACPI. This material is provided for general information and the opinions expressed and information provided herein are subject to change without notice. Every effort has been made to compile this material from reliable sources however no warranty can be made as to its accuracy or completeness. Before acting on the information presented, please seek professional financial advice based on your personal circumstances. ACPI is a full-service investment dealer and a member of the Canadian Investor Protection Fund (“CIPF”) and the Canadian Investment Regulatory Organization (“CIRO”). Investment services are provided through ACPI (or) Lemieux Wealth Mangement, an approved trade name of ACPI. Only investment-related products and services are offered through ACPI/(or) [Lemieux Wealth Mangement] and covered by the CIPF.