Lifespan vs. Healthspan
Canadian women live to approximately 84, men to 80. But the average healthy life expectancy — years free of significant disability — is roughly 68–70. That gap is your "sickspan": years when you're alive but may need significant care, home support, or facility placement.
For many families, this is the scenario that blows up even well-built retirement plans.
The Real Cost of Long-Term Care
In Ontario, basic long-term care facility costs are government-regulated at approximately $1,891–$2,701/month (2024) depending on room type. But that's the subsidized rate. Private-pay facilities and retirement communities with elevated care can run $5,000–$12,000/month.
Home care — preferred by most — is expensive too. Twelve hours of PSW support daily can cost $8,000–$15,000/month privately.
The Planning Gap
Most retirement income plans are built around travel, leisure, and maintaining lifestyle. They account for a modest healthcare cost increase. Very few build in a scenario where one spouse needs $8,000/month in care for three to five years.
Run the math: $10,000/month × 36 months = $360,000. That's the range that can exhaust a retirement portfolio that looked comfortable at 65.
What You Can Do
Critical illness insurance pays a lump sum if you're diagnosed with a covered condition (cancer, heart attack, stroke are the major three). The payout can fund care, modifications to your home, or replacement income while a caregiver spouse steps back from work.
Disability insurance replaces income if you're unable to work before retirement.
Segregated funds with guaranteed withdrawal benefits can create a floor of income that holds even if markets fall during a care event.
Honest cash flow modelling — running scenarios that include extended care costs — lets you see the gap while there's still time to address it.
The Conversation Worth Having
Sickspan planning is uncomfortable. It requires thinking about scenarios most of us would rather not contemplate. But addressing it at 58 is very different from addressing it at 75.
If you haven't had this conversation with your advisor, it's time.
Heidi Blondin, CFP®, EPC. Insurance products offered through Heidi Blondin Financial / Qualified Financial Services.
Mutual funds are offered through Investia Financial Services Inc.
Insurance solutions provided in Ontario and New Brunswick, through Heidi Blondin Financial / Qualified Financial Services.
The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. This article was prepared by Heidi Blondin who is a Certified Financial Planner (CFP) at Heidi Blondin Financial a registered trade name with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this presentation comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability.