Neela White, senior portfolio manager at Raymond James, joins BNN Bloomberg to discuss options for Canadians living longer lives. <\/p>\n
As more Canadians approach retirement age, an expert says it\u2019s important for people to have realistic conversations about where they will live and who will take care of them in their old age, as those decisions are more complicated than they may appear. <\/p>\n
\u201cThere\u2019s often this assumption that: \u2018Well, I don\u2019t really have to talk about it, and I don\u2019t have to think about it because automatically, my children, or my firstborn is going to step in,\u2019\u201d Neela White, senior portfolio manager at Raymond James, told BNN Bloomberg in a Monday interview.<\/p>\n
\u201cLet\u2019s say your firstborn can\u2019t\u2026 there\u2019s the out-of-pocket expenses involved. I think it\u2019s something to the effect of almost 60 per cent of all current caregivers are spending $640 a month, out-of-pocket, on the person they\u2019re taking care of.\u201d<\/p>\n
White said it\u2019s important for people to understand their living options as they age, which typically fall into three categories: aging in place, retirement living or long-term care. <\/p>\n
\u201cNinety-six per cent of Canadians want to age in place, so that involves (figuring out) what I need in the home to make it safe, what home modifications, what\u2019s you budget and what happens if you need in-home care,\u201d she explained. <\/p>\n
\u201cThe next one is retirement living, which is a social model and is very different. There are no real criteria to get in\u2026 it\u2019s private pay, so everyone has to understand going into retirement living, you need to know what your budget is.\u201d<\/p>\n
The price of a private room in a retirement residence, White said, can range anywhere from $4,500 to $12,000 a month, making it crucial for people considering the option to understand what exactly will be covered by the residence and whether the price is within their budget. <\/p>\n
While meals and basic services are typically included in the cost of a room, a residence may charge extra to people in need of special assistance for things like getting in and out of bed or bathing.<\/p>\n
\u201cThe last one is long-term care, which we\u2019re hearing lots and lots about and it\u2019s a very different model, it\u2019s a medical model. You have to apply through the government, but in Ontario alone, the waitlist is 48,000 people long,\u201d said White. <\/p>\n
\u201cSo, if you cannot get into long-term care, which is nursing homes, what is your backup plan and what budget do you have in place to have your care needs taken care of?\u201d<\/p>\n
White noted that one of the reasons long-term care is often waitlisted across the country is because it tends to be the cheapest of the three main options. Despite its popularity among the vast majority of Canadians, aging in place is more expensive than most people realize. <\/p>\n
\u201cIt\u2019s natural for all of us to think, sure, we\u2019ve been in our house for 50 years, we can remain here for another 50 years,\u201d she said. \u201cBut what I think everyone has to do is take a step back and think: \u2018How am I going to manage the stairs? How am I going to get in and out of that tub?\u2019\u201d<\/p>\n
White referenced a recent survey that found roughly 60 per cent of those aged 65 or older were not aware of the true cost of aging in place when they decided to do so. That\u2019s why it\u2019s important to have these discussions with family members long before the decision needs to be made, she said. <\/p>\n
\u201cDon\u2019t wait until the need arises because then you\u2019re in crisis mode,\u201d said White. <\/p>\n
\u201cWhen we look at how we\u2019re budgeting for this, I think there has to be a real step back to have realistic conversations with those who we believe are going to be part of our plan, just because we can\u2019t keep making this assumption that our kids want (to) or can take care of us.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Neela White, senior portfolio manager at Raymond James, joins BNN Bloomberg to discuss options for Canadians living longer…\n","protected":false},"author":2,"featured_media":129748,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[45,49,48,133,131,132],"class_list":["post-129747","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-ca","tag-canada","tag-finance","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/129747","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=129747"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/129747\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/129748"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=129747"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=129747"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=129747"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}