Source: Canadian News Wire

A survey for Manulife Financial reveals that seven out of 10 Canadians said they would prefer to have an annual physical exam than spend an hour discussing their long-term care needs. This reluctance in discussing their future long-term care needs helps explain why only 21 per cent of Canadians have factored long-term care costs into their retirement planning.

Dr. Rubin Becker, MD, FRCP(c), a recognized Canadian gerontologist, explains that avoiding long-term care planning is common - particularly as people must account for the possibility that they or their partner could experience deteriorating physical or mental health as they age.

"It's rare to see people plan for their long-term care needs. Many recognize they will require help, yet few can actually visualize it. And, many Canadians find care costs are much higher than ever imagined," explains Dr. Becker.

While Canadians prefer to side-step the long-term care discussion, they are not without worries about their future care. Fifty-seven per cent are concerned that they or their partner may need to go into a care facility in the future and are worried about their ability to pay for it. Moreover, 51 per cent fear becoming a burden to their family.

"The reality is that we're living longer, having fewer children to depend on, and there is a strong likelihood of needing long-term care someday, especially if we live to age 85. Planning for our long-term care needs should help ease worries," continues Dr. Becker. "Appropriate planning increases our ability to secure care, allowing us to remain at home for as long as possible in old age and it provides for a better quality of life, if and when facility-based care is needed."

The lack of planning doesn't come from a lack of personal experience with long-term care. The survey found that 38 per cent of respondents reported having already provided long-term care assistance to a family member or friend, mostly in the form of hands-on care. The greatest personal sacrifice in offering this assistance was "time loss."

How Canadians fare in long-term care planning

The Manulife Financial survey provided a number of insights about how prepared Canadians are and their knowledge about long-term care planning.

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Canadians who:                                                              Canadians
                                                                                      Age 35 - 75
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Are likely to use savings or retirement income to pay              80%
for long-term care (LTC), if needed
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Are likely to rely on government programs for LTC                61%
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Are likely to use equity from the home to cover LTC costs     53%
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Believe employee group benefits plans usually cover LTC      51%
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Factored LTC costs into retirement planning                          21%
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Paul Smith, Vice President of Marketing and Product Development for Manulife Financial's Individual Insurance area, points out that many Canadians assume employee group benefits cover long-term care costs, which is rarely the case. "It's really important that Canadians know exactly what their benefit plans and current insurance policies will cover when it comes to long-term care costs and plan accordingly for future care."

Smith further explains that long-term care costs can quickly deplete retirement assets, especially for couples. "The impact on retirement savings can be significant when you consider the costs of facility care for several years, with after-tax retirement savings. One elderly partner may require facility care, while the other remains at home, so selling the house to shore up long-term care funds is not always the most viable option. If retirement savings become depleted due to facility care costs for one partner, the other partner can find themselves without money to support their own care needs."