Canada’s population is aging rapidly and many want to retire in place—but are they prepared for the financial and emotional cost?

Cathy Soda was looking forward to retirement. At 64, she was nearly ready to step back from her work as account manager and downsize her home. That was before her 92-year old father, Fred, moved in with her to age in place rather than go to a retirement home, Soda told The Globe and Mail (1).

Instead of downsizing, Soda purchased a larger property to accommodate her father and her son living with her, along with buying new kitchen appliances and groceries every week, she told the outlet.

“Financially, it’s a bigger burden for me than for anyone,” Soda said. “But that was my choice.”

The desire to age in place — living in your home rather than moving into a long-term care facility or retirement home — has become a nearly ubiquitous desire for Canadians. A recent HomeEquity Bank survey found that 90% of Canadians over the age of 45 want to age in their own homes (2). But only 13% of respondents have thought about the costs of personal support workers as part of this plan, and only 6% have actually financially planned for it.

And as the Canadian population continues to age, the cost of aging in one’s home is only going to increase. The question is, who’s going to bear that financial burden?

Canada’s aging population and the rising costs

According to data from Statistics Canada (3), the number of Canadians that are aged 85 and older could triple to 2.5 million people by 2046. Moreover, that age group is one of the fastest-growing population groups according to the agency, which increased 12% since 2016 up until the 2021 census.

As Canada’s population continues to age, the costs for healthcare, home upgrades and other necessities for aging in place also rise. Estimates from the Canadian Medical Association (CMA) suggest that by 2028, the aging population will add $93 billion to health care costs (4).

For seniors hoping to remain at home, that means higher out-of-pocket expenses — and potentially greater reliance on family.

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How much does it really cost to age in place?

So, with this desire to skirt retirement or long-term facilities altogether, it's important to understand what out-of-pokcet expenses can arise post-retirement. For instance, installing important safeguards such as handrails or grab bars can cost anywhere from $50 to a couple hundred dollars. Larger upgrades such as accessible showers also cost a pretty penny — anywhere from $10,000 and up, say experts. A wheelchair ramp can potentially set you back $5,000 as well.

Home upgrades are necessary for aging in your own home, but there’s also personal support and/or nursing care to consider. The CMA notes how average personal support care for in-home patients ranges between 4.9 hours per week to 22.2 hours per week for high-need patients (5). Meanwhile, data from Right at Home home care providers suggest that personal support worker fees are approximately $35-40 an hour and in-home nurses cost $80 an hour (6). That means personal support care alone could cost anywhere from $184 to $833 a week ($736 to $3,332 a month), not including nursing costs.

You must also take into account the costs for meal planning from outside sources if you are unable to cook on your own. Meals on Wheels, a non-profit service, charges $8.60 for a hot meal in Ottawa or $53 for seven frozen meals (7).

Based on current care and meal service costs, aging in place can range from roughly $950 a month for seniors with minimal support needs to nearly $4,000 a month for those requiring higher levels of care. This is before factoring in housing costs such as property taxes, utilities, transportation and maintenance.

On the other hand, long-term care homes can be less financially burdensome, with prices ranging from $1,000 per month for subsidized ward rooms to $6,000 per month for fully privately funded facilities (8).

Unfortunately, it isn’t necessarily the person aging in place that bears these costs, but those closest to them. This can put immense financial strain on family members, like Soda, that work to accommodate their parent’s wishes to age outside of a long-term care facility. Some family caregivers have reported spending over $100,000 to care for their aging parents, according to the Globe.

How to prepare you and your family to age in place

Aging in place might be a high ideal, but it can also be financially and emotionally out of touch with your finances and your family members’ expectations. Here are some tips to help you decide on if aging in place is right for you and your family.

• Start conversations early. While it might be uncomfortable to discuss your long-term health, do not put off discussing aging in place. All family members need to be on the same page regarding their commitments to caregiving and financial support.
• Create a realistic budget. Compare the detailed costs of aging in your home versus living in an assisted care or retirement facility to see if your current finances, government pensions and/or benefits can support either. Remember that seniors have access to a number of government subsidies that can help offset these costs.
• Save for the change now. Rather than starting to save when you get older, start to save for aging in place right now. While it is standard to tap into your home equity through a reverse mortgage or home equity line of credit, having a safety net through savings can make a big difference.

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A decision that affects the entire family

Aging in place is something that nearly all Canadians can hope for, but it is critical to realize that decision isn’t one that affects just you — it affects your entire family. Make sure to have early, candid discussions about it well before you need to make a decision to prepare. While it might be difficult to broach the topic, setting expectations for the future can reduce stress when the time comes to age in your home.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

The Globe and Mail (1); HomeEquity Bank (2); Statistics Canada (3); CMA (4, 5); Meals on Wheels (7); Fairstone (8)