5705 Cancross Court, Mississauga, ON L5R 3E9View on Map »

Healthcare and Retirement

We are all familiar with the following perennial adage: “health is wealth”. Regardless of any financial circumstances you may have, optimum health allows you to enjoy long trips overseas, partake in your grandchildren’s life, physical activities such as golf as well as looking forward to your retirement years. No one wants to have to worry about the expenses that come with health problems in retirement.

It may look to you like you have done everything to have the perfect retirement plan, but Robert Burns said it best: the best laid schemes of Mice and Men oft go awry, And leave us nothing but grief and pain, For promised joy!

Rising Medical Costs and Retirement

The potential pitfalls of medical costs are not something that Canadians are unaware of. In fact, a majority of Canadians have expressed a growing concern for the possibility of paying medical expenses out of pocket after the age of 65, causing stress with regards to their financial preparedness in the case of long-term care. The fear response is that if Canadians ended up with a lengthy stay, it would exhaust their finances, which is heightened by the fact that only a few are budgeting for health-related expenses.

At present, there seems to be a general misunderstanding about what exactly our health care system will cover, which can be a huge contributor to the way people plan for their health in retirement. Case in point, there are limits to the coverage that the government can give you. For instance, the government can cover a tooth cleaning, but the prescription medication expense may be passed on to the patient. Not everything is covered and each situation is unique. While a retiree may have had a great benefits package while they worked, this employee benefits can have different requirements in retirement.

With life expectancy going up, there is going to be a lot of pressure and costs associated with long-term care and an aging population. As a result, there could also be a waiting time to get into long-term care homes in the public sphere.

So what if you want to remain in your home? Your provincial government can help you do this. Although your local health agency may help you with some home care, it may not be the most satisfactory one. Say for instance, you want to be able to take a regular bath daily! A caseworker sends you a personal care worker who can bath you twice weekly.

Consider the cost of hiring a personal care worker or nurse. In the case of hiring a registered nurse, the cost can have an hourly range of $40-$691. In the personal care worker situation, it can coast $20-$30 per hour.1

So you’re probably wondering how much you should save for your health care!

No one wants to think of his or her life ending in a disaster, which is exactly why some people shy away from health planning for retirement. Alternatively, what if you could change the thought of disaster and think of it as planning for contingencies?

When considering a comprehensive retirement, each person’s financial situation is unique. Therefore, it is prudent to plan for rising health care costs during retirement, especially since costs can either be covered by spending extra capital from a retirement saving account or by using an insurance solution to cover any cash flow shortfalls.

The key point to remember about a long term health insurance plan is that the earlier it is purchased, the cheaper it is. Contact our office to find out more about how long-term care insurance.

1Home Care Costs—A Complete Breakdown - closingthegap.ca


Do you have questions about your financial strategies?

Contact our office today !

Copyright © 2020 AdvisorNet Communications Inc. All rights reserved. This article is provided for informational purposes only and is not intended to provide specific financial advice. It is strongly recommended that the reader seek qualified professional advice before making any financial decisions based on anything discussed in this article. This article is not to be copied or republished in any format for any reason without the written permission of AdvisorNet Communications. The publisher does not guarantee the accuracy of the information and is not liable in any way for any error or omission.

This publication and website are intended for Ontario residents only and the information contained is subject to change without notice. Mutual Funds are offered and regulated through Global Maxfin Investments Inc. (GMII). Insurance products (including Segregated Funds) and Income Tax Planning is provided under the name of Ausim Mobeen. GMII does not supervise these activities and will not be accountable, responsible or liable for such activities. This publication contains opinions of the writer and may not reflect opinions of GMII. The information contained herein was obtained from sources believed to reliable, but no representation, or warranty, express or implied, is made by the writer or GMII or any other person as to its accuracy, completeness or correctness. This publication is not an offer to sell or a solicitation of an offer to buy any of the securities. The securities discussed in this publication may not be eligible for sale in some jurisdictions. If you are not a Canadian resident, this report should not have been delivered to you. This publication is not meant to provide legal or account advice. As each situation is different you should consult your own professional advisors for advice based on your specific circumstances.