Over the next two decades, the number of Canadians aged 85 and older could triple to nearly 2.5 million, according to Statistics Canada.STR Spencer Colby/The Canadian Press
Fewer than one in five Canadians have a comprehensive plan for the care of an aging or sick family member, according to a recent survey by Sun Life Financial.
The global survey, released Thursday, reported almost identical responses in Canada and the United States, with just 19 per cent of Canadians and 18 per cent of Americans saying they are fully prepared to care for ailing relatives.
The research, which was also conducted in Hong Kong, the Philippines, Vietnam, Indonesia, Malaysia and Singapore, found a higher share of respondents in those countries has a caregiving plan in place. But even there, only 30 per cent of respondents on average said they felt fully prepared to care for aging or sick relatives.
The findings highlight a common planning blind spot for millions of households around the world, particularly in countries such as Canada, where an aging population is putting increasing financial pressures on families.
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“It takes a sophisticated plan that covers a lot of different risks, issues, opportunities and things you’re going to do. And very few people are actually giving you that plan,” Kevin Strain, chief executive officer of insurer Sunlife, said in an interview. The company announced Thursday that it is rebranding from Sun Life to Sunlife.
Over the next two decades, the number of Canadians aged 85 and older could triple to nearly 2.5 million, according to Statistics Canada. Meanwhile, the Canadian Medical Association projects that the cost of long-term and home care will reach $58.5-billion by 2031, almost double its level in 2019.
Even with government benefits and tax credits available to help offset some expenses, the financial burden on families can be substantial. Unpaid caregiving alone accounts for roughly 75 per cent of total care costs in Canada, according to a 2023 study by researchers at the University of Toronto and Arizona State University.
On average, caregivers spend $7,025 out of pocket each year and dedicate 89 hours per month to caregiving responsibilities, according to recent research from Edward Jones Canada.
For families, the financial toll extends beyond the cost of medical bills. Taking on caregiving responsibilities can also mean reducing working hours, taking unpaid leave or stepping away from the work force altogether. In 2021, nearly half of Canadian caregivers reported missing work to meet the needs of those they cared for.
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In 2018, one in four Canadians provided care for a friend or family member because of aging, health issues, or disabilities, according to the latest available data from Statistics Canada. Women were more likely than men to take on caregiving responsibilities, particularly between the ages of 55 and 64.
Linda Dougherty, an executive vice-president at Sunlife, said planning ahead can help Canadians preserve their financial flexibility and avoid having to make difficult choices when caregiving responsibilities arise.
“In retirement, maybe they could care for a very elderly parent and have money to travel,” she said in an interview. “But that takes planning.”
The Sunlife survey was conducted by public affairs and communications firm Earnscliffe in mid-September. It surveyed about 1,000 individuals aged 18 and older across eight countries.
Editor’s note: This article has been updated to correct the surname of Kevin Strain.
