Aging in place: Financial planning for comfort, care and control
For many Canadians entering their retirement years, the idea of staying in their own home – surrounded by familiar routines, memories, and community – is deeply comforting. This approach, known as aging in place, has become an increasingly popular choice over institutional care options like retirement residences or assisted living facilities.
But aging in place is not without its challenges. It requires careful financial preparation, open family communication, and a clear estate and healthcare plan to ensure long-term peace of mind for everyone involved.
Aging in place should be a deliberate decision backed by a thoughtful strategy that balances dignity, independence, and financial responsibility. Let’s dig deeper into important considerations for aging in place.
The true cost of staying home
At first glance, staying in your own home may seem like the more affordable option compared to moving into a retirement facility. But aging in place comes with its own set of hidden and long-term costs, particularly as you get older and your support needs increase.
Some key financial considerations include:
- Home modifications. As mobility and health change, you may need to renovate your home to include features like grab bars, stairlifts, walk-in showers, or wheelchair-accessible entrances. Costs can range from a few thousand dollars to $50,000 or more, depending on the scope.
- In-home care. Hiring personal support workers (PSWs), housekeepers, or nurses can quickly add up. In Canada, the hourly cost for private in-home care ranges from $25 to $50 or more. Full-time care can exceed $5,000 to $8,000 per month.
- Health equipment and supplies. Items like hospital beds, oxygen equipment, mobility aids, or incontinence supplies may not be fully covered by public health plans or insurance.
- Household maintenance. As physical capabilities decline, you may need to outsource tasks like snow removal, lawn care, grocery shopping or home repairs. This extra support will come with extra costs.
- Transportation. If it's no longer safe for you to drive, you’ll need to consider the costs that come with alternative transportation options like taxis, private drivers, or transit.
While these costs can vary based on your location, health, and support needs, they may be similar or more than the monthly cost of assisted living or a retirement home. The difference is that aging in place allows for greater control, personalization, and often a stronger sense of well-being, as long as you carefully manage your finances.
Family involvement: A team effort
One of the most common challenges we see with aging in place is the blurring of boundaries between family and caregiving. Children or close relatives often step in to help manage appointments, finances and daily care. But this can lead to stress, miscommunication, or even resentment over time.
To prevent these issues:
- Have open conversations early. Don’t wait for a health crisis. Although it isn’t a pleasant conversation to have, it’s important to discuss your wishes, expectations, and concerns with your family while everyone is calm and clear-headed.
- Clarify roles. Decide who will be responsible for what – medical care coordination, financial management, transportation, etc. – and whether any compensation or external help is needed.
Create written agreements: This could include a caregiving plan, powers of attorney, and contingency plans in case a family caregiver becomes unavailable.
Engaging in transparent, inclusive dialogue sets the stage for collaboration, not conflict, and helps your family support your goals with less emotional burden.
Estate planning: Planning for control and continuity
Aging in place is tied to broader estate and legacy planning. Having the proper documents and legal protections in place is essential – not just to protect your assets, but to make sure your healthcare and personal wishes are followed, even if you become unable to express them.
At minimum, we recommend that individuals aging in place have:
- A current will: To ensure your assets are distributed according to your wishes and to avoid unnecessary legal complications for your family.
- Powers of attorney (financial and healthcare): Designate trusted individuals who can make decisions on your behalf if you're incapacitated.
- An advanced care directive or living will: Outline your preferences around life-sustaining treatments, long-term care, and end-of-life decisions.
- A digital assets plan: Include online banking, subscriptions, and email accounts that someone may need to manage or close.
If you haven’t updated these documents in several years – or if your circumstances have changed due to health, marriage, or loss – it's time to revisit them.
Estate planning is not static. It should evolve as your life does.
Bringing it all together: A holistic approach
Choosing to age in place isn’t just a personal decision. It’s a financial and family decision as well. Success requires coordinated planning across three key areas:
- Financial preparedness: Do you have the liquidity or insurance coverage to support long-term in-home care? Are your investments and retirement income aligned with your future needs?
- Family alignment: Are your loved ones informed, willing, and able to support you in your goal? Do they understand the plan and feel empowered, not burdened?
- Legal clarity: Are your will, power of attorney, and health directives current and comprehensive?
We take a multigenerational view, working with you and your family to anticipate needs, protect your independence, and safeguard your legacy. Our goal is to help you age not just with comfort, but with confidence.
Let’s Talk About Your Plan
Whether you're just beginning to consider aging in place or already supporting a parent or loved one in that journey, we’re here to help. From retirement income strategies to legacy planning and care coordination, we can build a roadmap tailored to your life – and the life you want to live at home.
Connect with us to start the conversation.