How to plan for your long-term care

Written by Olev Edur

Long-term care: It's an important subject for any retiree, and increasingly so as we get even further on in years. Yet, while everyone acknowledges its importance, relatively few seem willing to discuss the issues surrounding LTC. That's unfortunate, because only through discussion and planning can we ensure that we will be prepared for problems and make the most of all the resources available to us.

According to a recent Manulife Financial survey, 82 per cent of Canadian baby boomers reported concerns that long-term-care needs could affect their retirement income and assets, 54 per cent of respondents had family or friends who had required long-term care and 38 per cent had provided assistance to someone needing long-term.

"The reality is that we're living longer, having fewer children to depend on and there is a strong likelihood of needing long-term care someday, especially if we live to age 85 [and beyond]," says gerontologist Dr. Rubin Becker. "Appropriate planning increases our ability to secure care, allowing us to remain at home for as long as possible in [our] old age, and it provides for a better quality of life, if and when facility-based care is needed."

The Manulife surveys also showed that the majority (54 per cent) of respondents doubted that government programs would be able to meet their long-term-care needs, a view the statistics support. "Don't make the mistake of thinking the government will be there for you," says Jacqueline Figas, a consultant and author specializing in aging at Mississauga based Health Assured Financial Group.

Figas points out that in 1966 there were seven people in the workforce for every retiree, but shortly there will be a surge in the number of people retiring (i.e., the baby boomer generation), with the first wave hitting age 65 in 2011. By 2015 the ratio of workers per retiree will drop to three to one.

"Government programs are largely supported by tax revenue generated by today's workforce," Figas says. "The health-care system will be most impacted by the growth in the age 80-plus segment – it will double in 20 years and triple in 40 years – as this group comprises the heaviest users of the system. Caring for these aging baby boomers will be a major issue."

Planning is particularly important for women, for a number of reasons. The Manulife literature points out that:
•   women boomers have fewer, more transient children;
•   women spend their lives as the caregivers and in old age often have no one to turn to for their own care;
•   male counterparts tend to be uncomfortable in a primary caregiver role;
•   women tend to outlive their spouses or partners;
•   in their advanced age, women face savings shortfalls.

Page 1 of 4 -- On page 2, learn about the trends in home care options.

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