Canadians Need to Confront the Financial Realities of Retirement

Canadian ETF Association
Description / Summary

A sobering portrayal of the real costs of retirement shared recently by an expert source on aging issues reveals far-reaching financial and planning gaps that could tarnish many Canadians’ “golden years.”

In a webinar delivered recently to the Canadian Exchange Traded Funds Association (CETFA), Michael Nicin, executive director of the National Institute on Ageing (NIA) at Ryerson University, offered a candid overview of the costs of long-term care (LTC) and other retirement-related expenses in Canada.

Long-term care is the largest form of hands-on care not covered by the Canada Health Act. An aging population with an increasing proportion of centenarians—our fastest-growing demographic— means demand for it can only grow. Between 2019 and 2050, the cost of public care in nursing homes and private homes will triple to $71 billion from $22 billion (in 2019 dollars). Accommodation in a nursing home ranges from $1,800/month to $2,700/month; private options are $6,000– $10,000/month in today’s dollars.