The following article includes a personal account of family caregiving from a CFP® professional. It also contains helpful financial planning tips for those who are either preparing to ensure a loved one is cared for, or setting up their own future care.
Looking after a loved one who’s aging or dealing with a serious health issue can be the ultimate expression of love and affection. But it can also cause emotional and financial stress for caregivers.
I experienced the toll that caregiving can take firsthand when my father was diagnosed with Alzheimer’s at age 78. He suffered from the disease until he passed away at age 91. My father was looked after in his own home until the very end. Originally, this care was provided by my mother, who was only two years younger than him. In the late stages of the disease, when the care became very complex, my younger sister, who lived in the same city, took over.
My father was an educated man. He was a hematologist and very well respected by his patients, friends, and family. He was very compassionate and generous, and he was always ready to help people—both financially, and with words of wisdom.
My parents didn’t live in Toronto, so I usually saw them a couple times a year when I went to visit. I have very fond memories of the long walks I had with my father during those visits. He would tell me stories about his patients, employees, and family members.
The first time I noticed something was wrong with his memory was when he started recounting the same story repeatedly. In the early days of his illness, my mother would sometimes remind him that he had just told us a story for the third time that day. He would be in complete denial, saying, “yes, I did, and I would like to tell that story again for the fourth time.”
Soon, his short-term memory started deteriorating. He would forget the familiar route to the grocery store that he had walked for years. One night, he got lost while driving, and my sister went looking for him. They found him hours later, with no recollection of being lost.
In the first ten years, my mother was the main caregiver for my father. She wouldn’t go anywhere without him and was constantly watching him to make sure he was safe. In the last two years of his life, when he had forgotten the names of all his family members, he became withdrawn and would hardly talk. He needed round-the-clock care by caregivers, who would be there during his waking hours to help him with the activities of daily living.
My mother looked after him during the night, which meant she had to wake up multiple times when the alarm (which was connected to his bed to monitor his motion) went off. She would rush to his side to help him go to the toilet and return safely to his bed. This intense level of care took its toll on my mother’s health. It has resulted in many health complications that she’s had to deal with after my father’s passing.
There are many things families need to know if they’re caring for an Alzheimer’s patient. My personal experience has taught me the following lessons:
Home care can be expensive. While many Canadians prefer to age in place, most underestimate the cost of doing so. Caregivers hired through an agency can cost $35 to $40 per hour. The Canadian Medical Association (CMA) benchmarks 22 hours per week as a level of care consistent with keeping patients at home instead of in a long-term care setting. That would roughly translate to $3,500 per month—and this number only reflects general support, not healthcare services. Under some circumstances, continuous care in the home could cost as much as $30,000 per month.
Assisted living can be very expensive too. Though costs can vary in different cities, in Toronto, private luxury retirement homes charge between $7,000 and $10,000 per month for assisted living. Mid-range assisted living can cost $5,500 to $7,000 per month, according to Retirement Home Plus. Those paying for this type of care must also add the cost of hiring personal support workers to augment the care provided by the retirement home. That would cost approximately $4,800 per month for an additional three hours per day, assuming a rate of $40 per hour.
According to Statistics Canada, close to 40% of those who live into their 90s will need care in a long-term care facility (and three quarters will be women).
In Ontario, government funded long-term care homes have regulated copayment rates of roughly $2,085 to $2,980 per month (depending on whether the resident has a basic or private room). These costs can vary by province and territory, and a professional financial planner in your area can help you understand what they might look like for you or your loved one. Also remember that these rates are applicable for the medically complex residents who live in long-term care homes. Assisted living, which is available through private institutions for those who require less complex care, can be much more expensive.
If you’re in a position to prepare for your later years, make sure you have a financial plan in place. Ideally, you should have enough funds to provide for the cost of home care or facility care in the last ten years of your life. You can base your financial planning on the current cost for these services, and your financial planner can factor inflation into your plan to reflect the future cost of care.
The sooner you start planning, the longer the runway you’ll have until retirement—and the higher your chances of success will be with regard to meeting your savings goals.
If you’re planning to age in place, you must make sure your home will be suitable to you during your later years. If adjustments need to be made, make them sooner rather than later. Waiting until it becomes necessary to do so could make things challenging for your loved ones, who will have to juggle caring for you and tackling renovations to your home at the same time.
Sometimes, your current home may be totally unsuitable for you in your late 80s and 90s, and you may have to think about moving. That decision is much easier to implement when you’re in your 60s or 70s.
Looking after a loved one with a disease like Alzheimer’s can have a huge emotional impact and take a toll on the health of those who oversee care. I saw this firsthand in my family, as both my mother and sister suffered extreme emotional stress, which is now adversely affecting their physical health.
Self-care is important. If you’re a caregiver, you need to make a conscious effort to take breaks and look after your own emotional and physical well-being. Doing so will enable you to better care for your loved one.
Whether you’re planning for your future or the future of a loved one you care for, you can get started by having a conversation with a CFP® professional or QAFP® professional. A planner can help you incorporate the cost of aging in place or long-term care into your financial planning. To get started, head to the Find Your Financial Planner tool now.
Tina Tehranchian, C.M., MA, CFP®, CLU®, CHFC®, CIM®, MFA-P™ (Philanthropy), holds the FP Canada™ Fellow distinction and is a Senior Wealth Advisor with CI Assante Wealth Management Ltd. in Etobicoke, Ontario. The opinions expressed are those of the author and not necessarily those of CI Assante Wealth Management Ltd. Please contact her at (905) 707-5220 or visit tinatehranchian.com to discuss your particular circumstances prior to acting on the information above. CI Assante Wealth Management Ltd. is a Member of the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization. Insurance products and services are provided through Assante Estate and Insurance Services Inc.
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