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74% of Canadians Have No Financial Plan for Long-Term Care. The Bill Can Reach $200,000 Per Year. This Is Retirement's Biggest Hidden Risk.

May 13, 2026 by
purepathfinancial


43% of Canadians over 65 will require long-term care. The average stay is 3–4 years. Private facility costs range from $1,000 to over $15,000 per month depending on province and care level. And 74% of Canadians have made zero financial provisions for this possibility. It is the single most underplanned expense in Canadian retirement — and it can erase decades of savings in years.

Canadian healthcare is publicly funded. That fact, universally true and deeply held contains a dangerous assumption for retirement planners: the assumption that "publicly funded" means "fully covered." It doesn't. And nowhere is the gap between that assumption and reality more costly than in long-term care. Canada's public health system does not cover long-term residential care in the way it covers hospital stays and physician visits. What it covers is nursing care within publicly subsidized facilities. What it does not cover is accommodation and accommodation in a long-term care facility is where the bills become catastrophic.

A government-subsidized long-term care bed in Canada requires co-payments ranging from $879/month in some northern territories to $3,575/month in British Columbia. But government-subsidized beds often have wait times exceeding 142 days provincially in Ontario - and some families wait years. Private long-term care facilities, which offer faster access and higher quality of amenity, charge between $6,000 and $15,000 per month depending on the province and level of care. In-home care, the preferred option for most Canadians, runs $10–$200/hour for private nursing and personal care services. A Canadian who requires full-time private home care for 3 years before transitioning to a private facility for another 2 years could easily face $300,000–$400,000 in out-of-pocket long-term care costs during a period when their portfolio would otherwise be growing.

74%
Canadians with no financial plan to pay for long-term care
CLHIA / SeniorSite Canada
43%
Of Canadians over 65 who will require long-term care at some point
CLHIA data
$200K/yr
Maximum annual long-term care cost for private facilities in Canada
HOOPP / Industry data
The longevity-gender compounding is critical. Women live longer than men on average (3.8 years), have smaller retirement portfolios on average, and are significantly more likely to require long-term care for more than 5 years - 28% of women compared to just 11% of men, according to Kemper, Komisar and Alecxih's long-term care duration research. Women are the demographic most exposed to long-term care cost risk, and often the least financially prepared for it.


The Four Strategies for Funding Long-Term Care in Canada

1. Self-insure with a dedicated reserve. Setting aside $200,000–$400,000 in a segregated, conservatively invested account designated for potential care costs. This works for high-net-worth households but requires both the assets and the discipline to leave them untouched.

2. Long-term care insurance. Purchased before significant health events (typically before 65), LTCI pays a monthly benefit — either reimbursement-style or income-style — when you can no longer perform two or more Activities of Daily Living. Premiums are lower the younger and healthier you are at purchase. After a major health event, you may be uninsurable.

3. Critical illness insurance with long-term care rider. Some CI policies include an LTC conversion option, allowing policyholders to redirect the benefit toward care costs without a separate LTC policy.

4. Home equity as a last resort. The value of a paid-off home can fund significant care costs — but requires careful tax and estate planning around the principal residence exemption and the timing of any disposition relative to the homeowner's death or move to care.

The conversation most Canadian families are not having, until a health crisis forces it, is the conversation about what happens when mom or dad can no longer live independently. Having that conversation at 60, when options are numerous and costs are manageable, is categorically different from having it at 80, when health events have already eliminated the best options. Long-term care planning is not morbid. It is, quite literally, one of the highest-return financial conversations a Canadian family can have.

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Nearly Half of Adults in Their 40s and 50s Are Supporting Two Generations Simultaneously. Most Have No Financial Plan for It.