Top Health and Care Concerns in Retirement
- The health of my spouse
- My own health
- A family health catastrophe
- Spending my final years in a care facility
- Having someone else care for me in old age
Aging in Place
In early 2022, statistics regarding aging in place in Canada highlighted a strong preference among seniors to remain in their own homes or private residences and their communities as they age [source].
In 2011, Census Canada found that approximately 92.1% of Canadians aged 65 and over lived in private residences or dwellings. Aging in place has been a prevalent trend in Canada, with seniors adapting their living situations by seeking support services, adapting their homes, or receiving assistance from family members to facilitate remaining in their own homes for as long as possible. While moving to retirement is not likely a concern for early retirees, they may be dealing with this issue for elderly parents.
Considerations for Retirement Community Living
Moving to a retirement home involves various considerations to ensure a smooth transition and a comfortable living situation. Here are some important factors to consider:
- Location and Community: Assess the location of the retirement home. Consider proximity to family, friends, medical facilities, and amenities that align with your lifestyle preferences.
- Level of Care: Determine the level of care and services offered. Different retirement homes provide various levels of assistance, from independent living to assisted care and memory care for those with specific needs.
- Cost and Financial Planning: Understand the costs involved, including monthly fees, additional services, and potential increases in the future. Ensure the retirement home's costs fit into your budget and financial plans for the long term.
- Amenities and Services: Evaluate the amenities available—recreational activities, dining options, fitness facilities, housekeeping services, transportation, and any other facilities important for your comfort.
- Staff and Reputation: Research the reputation of the retirement home. Look for reviews, visit in person if possible, and interact with staff to gauge their responsiveness and professionalism.
- Social Interaction: Consider the social atmosphere and community engagement within the retirement home. Opportunities for socializing, group activities, and clubs can greatly impact your experience.
- Healthcare Support: Evaluate the healthcare services provided on-site or nearby. Access to medical care, emergency response systems, and availability of skilled nursing care can be crucial.
- Personal Needs and Preferences: Assess how well the retirement home meets your personal preferences and needs. Consider factors like pets, religious or cultural preferences, and specific lifestyle choices.
- Legal and Contractual Considerations: Understand the terms of the contract thoroughly. Consider legal aspects, refund policies, rights, and responsibilities as a resident.
- Visiting and Trial Stays: Whenever possible, visit the retirement home multiple times, engage with current residents, and consider a trial stay to experience daily life within the community before making a final decision.
- Future Planning: Plan for potential changes in your needs as you age. Ensure the retirement home can accommodate evolving health or mobility needs in the future.
Funding Retirement Community Living
While the family home might not traditionally be considered a capital asset for retirement, its potential as a tax-free asset sale to fund later-stage retirement or to be used as an asset to fund a move to retirement community is notable.
The carry cost of home ownership such as property tax, utilities, maintenance is something that will not be needed in retirement communities and may offset the cost of retirement community living.
Funding Long Term Care
Those Canadians who plan ahead for potential care costs may wish to explore the option of Long Term Care insurance. This policy is most often considered between ages 40 to 70. A unique characteristic of these policies is that they are not based on gender or smoking status.
Premiums, payable for a set duration, vary with age and coverage type. Choosing early presents advantageous rates and coverage levels, offering a shield against future dependencies. These policies, often tax-free, provide monthly benefits, post a stipulated dependency period. Generally, the longer the waiting period chosen, the lower the premiums for this type of insurance. Benefits are paid to those Canadians who can no longer perform “activities for daily living” such as dressing, eating transferring or bathing.
Policyholders may also opt for an additional safeguard—the Return of Premium (ROP) option—assuring estate reimbursement of premiums if left unclaimed.