Many people spend years saving for retirement. Far fewer spend time thinking about how they want to live once they get there.
Amica community-relations directors have guided thousands of conversations with seniors and loved ones about living options. Many bring well over a decade of experience, and they often find that a conversation beginning with monthly costs soon expands to independence, daily experience, support and peace of mind.
Compare what you’re getting, not just what you’re spending
When comparing the cost of remaining at home with retirement living, it’s tempting to look only at the monthly numbers. But that rarely tells the whole story. At home, expenses may include property taxes, utilities, groceries, maintenance, transportation, housekeeping and home care. In a retirement residence, meals, housekeeping, activities and transportation may be included in the monthly fee, while personalized care may cost more.
The important question isn’t simply which option costs less. It’s what each provides, what you would still need to arrange and how well it supports the life you want. Fewer household responsibilities, access to care and support, opportunities for connection and more time to spend as you choose can all influence which option feels right.
Consider what might change
Occasional help with housekeeping or transportation may be sufficient now. But what would the costs look like if you needed assistance every day? What if one spouse required more support than the other? Both remaining at home and retirement living can involve higher costs if more support is needed in the future. Thinking through those possibilities now can help you feel better prepared for whatever comes next.
The National Institute on Ageing’s 2024 Ageing in Canada Survey found that only 48 percent of Canadians aged 50 and older who needed home care received the services they required most of the time. Availability, timing and who will coordinate that support can matter as much as cost.
Not every cost appears on a bill. Statistics Canada reported that 23 percent of Canadians provided care to an adult with a long-term condition or disability in 2022, spending about eight hours a week on that support. Professional services may ease some of those responsibilities, giving loved ones more time simply to be together.
Your home may offer more options than you realize
Selling your home may release equity that can help fund retirement living or additional care. But it’s important to consider the amount available after any mortgage balance, selling costs and moving expenses.
Timing matters too. If you move before selling, could you comfortably manage expenses for both properties? If you remain at home, what future repairs, renovations or accessibility improvements might you need to plan for?
Your financial advisor can help you explore how home equity, pensions and investments could work together to support your plans. A tax professional can also explain whether any care-related expenses may qualify for tax credits.
Make room for what matters to you
Financial planning isn’t only about covering expenses. It’s also about deciding how you want to use the resources you’ve worked hard to build. You may want to preserve funds for unexpected needs, help children or grandchildren, or leave an inheritance. You may also want to enjoy more of what you’ve saved today.
There isn’t one right balance. What matters is understanding the trade-offs and making decisions that reflect your priorities. Amica’s financial planning tool can help you understand living options, what is included and what additional support may cost. Your financial advisor can then help you assess what works for your circumstances.
A good financial plan does more than prepare you for change. It helps you make the most of the possibilities ahead.
What’s next?
Explore the resources in Amica’s planning centre including our Financial Planning Workbook.
Visit amica.ca/living-well for more blogs from this series.