If you’re considering retirement living for yourself or a family member, you likely have questions – and we have answers.
Whether you’re asking how much a retirement community costs in Canada or comparing options like government benefits for independent living versus assisted living, this guide offers practical information and financial tips to help you make the most informed choice.*
1. Understanding Retirement Living Options and Average Costs
The different types of retirement living come with different price tags. Keep in mind that the average monthly cost of retirement living in Canada varies widely by region or location, size of apartment, care and/or services provided, amenities, etc.
A good fit for older adults who want an active lifestyle without the responsibilities of home maintenance. Typically includes a private apartment, meals, housekeeping, transportation and social activities. Learn more about independent retirement living.
Entrance fees: Some communities require a one-time buy-in fee, which can vary in cost.
Similar to independent living but with personal care services added to support daily activities like bathing, dressing and medication reminders.
Total monthly cost may increase based on the required level of care.
A form of assisted living that provides more intimate, specialized support for those living with dementia and other forms of memory impairment.
Total monthly cost may increase based on the required level of care.
Also called nursing homes, skilled nursing communities offer the highest level of care 24/7 from licensed medical professionals for residents with significant health needs, disabilities or chronic conditions.
Government benefits: Costs may be offset by long-term care by government benefits for those who qualify.
2. Take Stock of Your Finances
An honest assessment of your financial situation is key. While it’s best to sit down with a financial professional and discuss all available resources – from savings accounts and investments to pensions, OAS and GIS, along with financial assistance for seniors without triggering OAS clawbacks – this list will get you started.
Resources commonly used to pay for senior living:
- Cash savings and tax-advantaged accounts like a Registered Retirement Income Fund (RRIF) or Tax-Free Savings Account (TFSA)
- Proceeds from selling assets (including real estate)
- Home equity or sale of a house (selling a house to pay for retirement living)
- Income streams like the Canada Pension Plan (CPP)
- Eligibility for financial programs
3. Covering Your Costs Without Savings
Even if you’ve saved very little, financial consultants often have creative ideas for how to cover retirement living costs without savings by maximizing assets you already have.
This is one of the most common ways to finance retirement. The proceeds from selling a home often cover retirement living move-in costs and can be put toward monthly payments.
Homeowners may also consider a reverse mortgage to pay for retirement living. This lets an owner convert home equity to cash without selling their property.
If your house hasn’t sold but you’ve already made plans to move, a bridge loan for retirement living offers short-term financing that’s typically repaid once your house is sold.
Programs such as Old Age Security (OAS), Guaranteed Income Supplement (GIS) and the Canada Pension Plan (CPP, or QPP in Quebec) may be able to help pay for independent and assisted living.
Some individual provinces offer additional services, so check with your province’s health ministry when searching for a nearby retirement community.
Some tax breaks may be available, including tax deductions for retirement care costs or credits for caregivers supporting an aging relative. Consult a tax professional to take full advantage of incentives to reduce your out-of-pocket expense.
Other tools and sources may include:
- Pension income splitting for married couples
- Provincial subsidies for long-term care
- Life insurance cash-out options or accelerated benefits
- Family support strategies
4. Talk with a Retirement Living Expert
No matter which retirement living option you’re considering, community managers navigate complex financial conversations every day.
Locate a community near you and request a personalized consultation. There’s no obligation and, chances are, you’ll walk away with a smile, knowing you’ve taken the first step toward a carefree – and affordable – retirement.
*This article is for educational purposes and not financial advice.
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