The Real Cost of Elder Care in Ontario

We are living longer than we ever imagined or planned for financially.

The life expectancy of a female born in the 1920’s was 61 years of age – my Mom is now 90. 

My own current life expectancy is 74.  If I live 29 years longer than expected, like my Mom – I may live to 103.

Doesn’t really sound like a problem, does it.  It could become a significant problem for those who aren’t prepared.

I didn't plan to live over a century – did you?                                                                                                                     

We are the generation of “live for today” while planning for tomorrow.  We like to spend money on our kids to give them advantages we never had.  My parents, who grew up in the depression, spent sparingly, went without and saved for their retirement – never imagining they could live into their 90s.  I have lived for the moment, travelled, enjoyed fine wines and dining out, spent on my kids and saved some for retirement – without considering retirement might be almost 40 years long and could involve significant care costs.

What is the cost of living longer than expected?  Considerations vary from person to person.  Genetics and lifestyle impact longevity.  What happens when your body remains alive but dementia has stolen your mind?  One thing is for certain – humans spend a lot of time, money and energy making our bodies stronger and healthier so we could live longer more active lives. 

Have we paid enough attention to our minds?

The Toronto Star recently called dementia a “catastrophe worldwide”.  The amount of dementia patients in Canada today is just under $750,000.  That number is said to grow to $1.4 million in 20 years.  Dementia eventually steals our ability to care for ourselves or make our own decisions.  Some people live many years after losing their ability to communicate.  My Grandmother-n-law has lived 18 years since moving to a nursing home in her early 80s.  I first met her 12 years ago and have never heard her speak a word or acknowledge she understands what we are saying.

What is the cost of dementia?

Beyond the heartbreak of losing someone you love in small pieces though they are right in front of you, there is a very real financial cost.

In 2015, if someone needs 24 hour care in Ontario – Canada, there are three main options:

1.  Private caregiver provides 24 hour care in the patient’s own home.
•   Family member – significant physical, emotional and financial toll.
•  Paid service – between $100, 000 and $220,000 annually – depending on the service.
2. Private Assisted Living facility -  between $60,000 and $110,000 annually – depending on the level of care.
3. CCAC Nursing Home – Government run and partially funded - averages $24,000 annually – depending on patient’s income and living quarters.

Most CCAC nursing homes have a minimum wait of 1 year for admission.  A person cannot go on the waitlist until they reach the point of need. They have a critical list that accesses certain criteria; however, if the person demonstrates the ability to pay for some private help or has family to assist with care, they are not high on that critical list. That list doesn’t take into consideration that family may not be able to afford to quit jobs or give up their own freedom to care for another 100% of the time.  That means someone who can no-longer care for themselves must have family willing/able to care for them 24 hours each day or between $60,000 and $220,000 to pay for their first year of care.

What does this mean for all of us?

It means that the very poor or the very rich have little to worry about financially.  Middle income Canadians are a completely different story.  An entire life savings can be depleted in 1-2 years waiting for a spot in a Nursing Home.  And what if that patient has children who feel their parent would be better off in a private facility?  Depending on their parents’ income, those children could be paying between $40,000 and $90,000 annually for a number of years.  That could bankrupt some at minimum, or be a significant financial hardship to most.  And what of their ability to save for their own potential future care so they don’t repeat the cycle to become a burden on the next generation of their family?

What can we do?

The high cost of Dementia care has been discussed by the UN, at the G8 summits and has certainly received significant media coverage in the last 2 months.  Unchecked, dementia has the potential to bankrupt the Ontario Health Care system in the next 20 years.  Most experts seem to agree – we urgently need to find a cure for dementia.  Current spending for dementia research is a tiny portion of what is committed to diseases like cancer, AIDS or heart disease. 

I’m not suggesting we all stop enjoying our lives and wait for the looming doom of dementia to strike. I can only tell you my plan:

•  I hope my Mom is settled into a CCAC Home before her assets are depleted.
•  I will direct charitable spending to dementia research.
• Stay up to date on dementia prevention techniques and methods of early detection.
• Decrease current spending and increase retirement investments to prepare for a province that may no longer be able to help care for me 30-50 years from now.
• Complete detailed estate planning to ensure I do not become a financial or emotional burden on my children.
• Work as long as possible, instead of retiring early or at 65.

Not the retirement I planned for myself, but the only responsible course I can see, given the statistics and my family history.  My greatest hope now is a cure for dementia so that my mind and body might appreciate seeing 103 years, instead of dreading my own longevity.  I crave a cure for dementia so my children can live their own lives instead of focusing all of their efforts on sustaining mine.

WORLD LEADERS - PLEASE INVEST IN A DEMENTIA CURE!!!!