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Tips to Stay financially Independent as You Age
Survey says
A recent study by CPA Canada revealed that one in three Canadians are concerned about the impact of COVID-19 on their personal finances, with 21% revealing they plan to retire later due to the pandemic. A separate survey by Ryerson University and the National Institute for Aging (NIA) discovered that 91% of Canadians of all ages, and nearly 100% of Canadians over 65, plan on supporting themselves to live safely and independently in their own home for as long as possible. The same survey found that while 28% of Canadians report already having taken on unpaid caregiving responsibilities for an aging parent or loved one, only 43% say that, if needed, they are prepared to become a caregiver for an aging family member.
What you should be doing now
This changing perspective makes saving — and saving for retirement — more important than ever. To that end, we’ve compiled a few tips from the Chartered Professional Accountants of Canada on bolstering your retirement savings in times of uncertainty.
- If you’re nearing retirement, now is the time to meet with a financial professional to discuss your savings strategy and retirement income. Your savings analysis should look at the longer term, including the potential for health issues to arise and whether you’re planning on staying home, accessing homecare or moving into a care facility.
- If savings are an issue now, consider supplementing your current income. Other than remaining employed part or full time, you may also consider real estate adjustments such as selling or downsizing your home or converting extra space into rental income to reduce your cost of living.
- Start thinking about care options now. According to the NIA study, 70% of respondents over 65 reported that COVID-19 has changed their opinion on nursing and long-term care homes; however, only 43% of all respondents are financially prepared to care for an aging family member. Experts are projecting that there will be an increased demand for homecare solutions with fewer adult family members available to provide unpaid care. So, what are the options? Now is the time to establish a contingency plan and carefully preplan the financial resources you’ll need to support that plan. This planning should also include creating a will, ensuring it remains up to date and appointing a power of attorney.