Helping 50+ British Columbians plan and live successful and secure retirements

What are the "Care Years"?

What is "Care Years" Planning?

What are the Types of Care Services and Costs?

What Funding Solutions are there?

Are You Ready? - a self evaluation...

What are "Care Years"?
A time in our lives when we need help to live as independently as possible.

A lot has changed in the last few decades that requires us all to consider and plan for this period of our lives:

  • an aging population (over the next 20 years the population of people 65+ will approximately double)
  • increased life expectancy
  • family structure changes
  • more women in the labour force
  • a relative increase in cost of support services together with a decreasing coverage of those services by government health benefits

Today:
• 1 in 5 Canadians age 45 and over provide care to an older person
• 90% of senior care in Canada is provided by family members
• By 2010 - 60% of "boomer" age people will have a senior parent

Who Will Provide Care For Our Aging Seniors, and Who Will Pay is an issue for the entire family and community. Ideally it's an issue that every individual needs to pre-plan in order to:

  • gain the greatest amount of control over our own living situation when we need care
  • ensure our financial resources have accounted for needing support services at some time in the future
  • prevent excessive emotional or financial stress that providing care can cause to our spouse or family

We need to protect our family caregivers! Family caregivers are 2xs as likely to suffer from depression as other people, are more likely to lose income and advancement opportunities, and alarmingly have a 63% greater risk of death than non-caregivers in their same age group.

We need to accept an obvious reality! Despite the obvious need to plan for our Care Years - only 20% of people age 50+ have seriously thought and done any planning for this stage of life.

Care Years Planning involves 3 important steps:

1. A self-survey of goals and desires regarding our own potential use of care support services, especially regarding our accommodation needs and suitability.

2. An evaluation of our resources - financial, family, community, government.

3. A plan - verbal or preferably written, developed with spouse and/or family, and possibly with the help of a professional, such as a Certified Senior Advisor.

Types & Stages of Care

As the level and intensity of care services increases, so does the cost:

Pre-planning may allow for longer or possibly permanent retention of a desired level of care. For example, making early provision for aging in your own home, and a budget for Live-in Care could allow you to stay in your own home as long as you desire, and avoid higher and more costly levels of facility service.

One solution could be Long Term Care Insurance used to pay for Live-in Care, or for a family member to take time off work, or for home modifications, or any other need.

Did You Know?

• Care Services in Canada are subsidized by government - not free!
  
  
• Who pays? Families pay! - with some assistance from the provincial government.
  
  
• The subsidy rates vary depending on income - ie. they are "income tested"
  
  
• The subsidy covers a portion of living costs and may cover a portion of in home services if assessed as necessary; the BC Medical Services Plan covers all medical, doctor, hospital services.
  
  
• As of 2003-2004 the BC subsidy rate is between $27.10 and $65.00 per day
  
  
• The provincial government's description of their care service program is "the provider of last resort"
  
  
• The average residential care cost in BC is $150 per day (not including health services that are covered 100% by the provincial plan)
  
  
• Typical costs of $100 per day ($150 less the $50 subsidy) would deplete $300,000 of savings in 7 to 10 years. (examples of conditions typically requiring such care include a stroke/paralysis, a fall causing a hip fracture and subsequent serious movement disability, Alzheimer's or any other dementia, Parkinson's, advanced MS, advanced heart disease, advanced cancer, diabetic complications, loss of function from aging)
  
  
• Approximately 60% of people age 75+ will need some form of Living Assistance services, the % goes up with increasing age

   

   

  Possible Funding Solutions - using available subsidy plus:

  • non-registered investment funds (eg. GIC's, deferred annuities, prescribed annuities, cash)
  • registered funds (eg. accelerate RRIF income - has negative tax consequences)
  • home equity (eg. reverse mortgage - erodes security and estate value)
  • extended family resources (a last resort for most people)
  • Long Term Care Insurance (pays a tax free income in the event of a living assistance need)

• Independence
• Choices and control of circumstances
• Quality of life
• Care in own home
• Dignity (most people don't want family members involved in their bathing, toileting, etc.)

See Long Term Care insurance for more info.

 

 

Test Yourself - Are You Ready For Your Potential Care Years?

1. I know that my retirement years consist of 2 parts - the well deserved, relaxing, independent years, and the changing health, increased dependency, care years. I have an understanding of the needs of both stages....Yes     No

2. I have a good grasp of my financial, legal, and insurance affairs and I feel confident that all my necessary documents are up to date and in order....
Yes     No

3. I have made my end of life wishes known (eg. a written will, an enduring power of attorney, and instructions to my family)...Yes     No

4. I feel confident that I have a good retirement plan in place that takes into consideration the financial impact of potentially changing health needs...
Yes     No

5. I know at least one government agency in my community with the responsibility for senior's health needs and I'm aware of at least one of the programs offered through that agency... Yes     No

6. I know what to look for and how to "elder-safe" my home in order to prevent potential accidents....... Yes     No

7. I understand the medications I'm taking and I've asked about the possible side-effects of those medications or the side-effects of drug interactions...
Yes     No

8. I know what to do and/or who to call in the event of a health emergency...
Yes     No

9. I am aware of some of the subtle signs of dementia to watch for in my family members (eg. increased need for routines, dissociated memory)...Yes     No

10. I'm aware of the various care-programs in my community and know how to request those(eg. at-home services, live-in caregivers, rehabilitation services, care-home living, assisted living complexes)...Yes     No

11. I understand many of the costs associated with the Care Years that are above what the government will cover (eg. care-home fees, live-in caregiver salaries, therapy costs, cleaning services, special equipment) and I realize that there is now a special insurance available to help me cover those costs when needed...
Yes     No

12. I am confident there will be few surprises for my family to contend with during my senior years because my "house is in order"...Yes     No

 

Suggestion: If you answered No to 3 or more of the above questions - you would benefit from a free consultation with a Certified Senior Advisor

 

 

Links to Government Services Particular to Care Years Planning:
(for all links see "Resources")

http://www.healthservices.gov.bc.ca/assisted/index.html
overview of what "assisted living" means in BC
http://www.healthservices.gov.bc.ca/ccf/adult/index.html
overview of what "community care" means in BC, plus adult care regulations

http://www.healthservices.gov.bc.ca/seniors/publications/inforseniors.pdf
BC government's senior's information guide - available here for print out on-line (however its lengthy) if you want a free print copy call your local Certified Senior Advisor

Community Care Programs - 800-465-4911 for programs in your area
This is a good place to start if you or a loved one need to access and receive evaluation for government provided care services.

 

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