As we age, reassessing retirement living arrangements in Canada becomes essential to meet changing health and wellness needs. Most people will eventually need assistance but determining when and how much help is needed is key. Retirement planning helps identify the best living options based on individual needs.

Aging in Stages: Key Phases in Retirement

Dividing retirement into three stages can help with planning in Canada:

• Phase 1 of Retirement - 65-75 Years
  This stage typically involves good health, semi-retirement, and maintaining independence.

• Phase 2 of Retirement - Late 70s +
  Health may begin to decline, requiring additional assistance and support.

• Phase 3 of Retirement - Increased Care
  Some individuals may need to transition to long-term care or specialized memory care due to health or cognitive issues.

Choosing Senior Living and Care Options

In Canada, there’s no one-size-fits-all solution for senior living. Options for senior care include:

 

• Independent Living
• Assisted Living
• Long-Term Care (Nursing Homes)
• Continuing Care Communities
• Home Care Services

The key difference is the level of care needed. If assistance with daily activities like eating, dressing, or medical care is required, options such as assisted living or nursing homes may be more appropriate. Many older adults fear that moving to a retirement community means losing independence. However, many communities offer various living arrangements and services that can enhance your quality of life as you age.

Questions to Assess Retirement Care Needs

To decide if more care is needed, consider:

• How manageable is your current home?
• How easy is it for you to get around?
• What is your current health status?
• Are you finding it hard to stay connected with family and friends?

Watch the video

Financial and Estate Planning for Retirement in Canada

The costs of retirement living in Canada can range from $5,000 to $7,000 per month depending on care needs. Having a retirement savings plan in place helps manage these expenses. Additionally, estate planning for seniors is essential—ensure your will is updated and includes powers of attorney for financial and healthcare decisions.

By addressing these considerations, you can ensure your retirement living situation aligns with your needs and preferences, allowing you to enjoy your later years with peace of mind.

Retirement Planning in Canada Example

Aging in Canada is increasingly seen as a new stage of life rather than a loss of youth, with health being a key factor in shaping this experience. As Canadians live longer, ensuring that their wealth lasts is essential. Take Mary, a 75-year-old widow with $3 million in assets (excluding her home). Her income comes from various sources: 62% from investments, 18% from her Registered Retirement Income Fund (RRIF), 11% from the Canada Pension Plan (CPP), and 9% from a defined benefit pension. Mary enjoys an active lifestyle, attending family gatherings, theatre events, and participating in a gardening club with other seniors.

Wealth-Planning Considerations for Retired Canadians

Preserving wealth for the next generation is a priority for many older Canadians. Mary, for example, may help her grandchildren financially through a trust, either during her lifetime or in her Will. Managing spending habits is crucial; Mary monitors her expenses to enjoy luxuries like international travel while avoiding overspending. Many retirees face similar challenges and may be vulnerable to financial abuse, so tracking spending over time can help establish a sustainable budget. Working later in life is another option, as many seniors continue to work part-time. Statistics Canada reports that 20% of Canadians over 65 were employed in 2015, providing extra income and social engagement.

Housing and Regional Trends for Retirement

Housing is a key consideration for aging Canadians. Mary plans to downsize and may move into a retirement community offering independent living and health support. While 92% of seniors live in private households, 31% of those aged 85 and older live in collective dwellings, such as nursing homes. Seniors are more concentrated in the Atlantic provinces, where nearly 20% of the population is over 65.

Travel and Lifestyle for Aging Canadians

Mary enjoys long-haul international travel, a common preference among Baby Boomers, who typically travel for longer durations and are decisive about their destinations. Travel continues to be a significant leisure activity for this generation.

Managing wealth, staying active, and retirement planning for Canadians are essential for aging Canadians to maintain a fulfilling and secure lifestyle.

---

The opinions expressed in this report are the opinions of the author and readers should not assume they reflect the opinions or recommendations of Richardson Wealth Limited or its affiliates. Richardson Wealth is a trademark of James Richardson & Sons, Limited used under license. Richardson Wealth Limited, Member Canadian Investor Protection Fund.

---