The majority of older Canadians are unaware of the costs associated with long-term care and few are financially prepared to cover expenses, according to a Leger Marketing poll of Canadians aged 60 plus, conducted on behalf of The Canadian Life and Health Association (CLHIA).
The poll shows that 56% of Canadians are not familiar with the costs of long-term care in their province and two-thirds (67%) do not have a financial plan to cover the costs of ongoing long-term care.
"We need to acknowledge that we are facing a looming crisis in this country. Many older Canadians are on the verge of sticker shock when they inevitably come up against the need to pay for long-term care services," CLHIA president Frank Swedlove said in a press release. "We calculate that the baby-boomer generation alone will require $1.2 trillion to meet their long-term care needs."
Further, the CLHIA estimates that currently available government programs would only cover about half of this amount.
Women in particular are less prepared, with 70% saying they do not have a financial plan to cover the costs associated with possible long-term care needs compared to men at 62%. This is especially troublesome considering women have a longer life expectancy.
"It is in the national interest that all levels of government and Canadians begin working together immediately to find solutions that will close the gap on what services are currently provided and what people can afford," added Swedlove.
Two-thirds of Canadians aged 60 plus said they would put money aside for long-term care if the government matched dollars they saved, similar to the registered education savings plan. Half of the respondents said they would prefer the government take the lead and add to the long-term care programs it offers, even if it means higher taxes (51%).
The survey of 500 Canadians age 60 to 74 and 500 Canadians age 75 and older was completed online between March 20 and 27.
CLHIA is a voluntary association whose member companies account for 99% of Canada's life and health insurance business.
The industry provides a wide range of financial security products such as life insurance, annuities and supplementary health insurance to almost 27 million Canadians.
