Who will care for you in retirement? New survey of Canadians finds common blind spot

Canadians are doing reasonably well at saving for retirement, but are largely falling short on planning for their later years, such as figuring out long-term care options or who might look after them, according to a new study.

New research released on Tuesday from Manulife Financial Corp. and the Massachusetts Institute of Technology’s AgeLab rated Canadians’ overall retirement preparedness at 60 out of 100, on average. While respondents scored a relatively high 66, on average, for financial preparedness, the study found significant gaps in planning for future health and care needs.

The findings highlight a common challenge for retirement planning: Saving enough is just part of the battle. Preparing for declining health, changing housing needs and options such as long-term or in-home care is another, often neglected aspect.

“We’ve never had a population this large living this long,” Joseph Coughlin, director of the MIT AgeLab, said in an interview. Yet, he said, there’s little guidance on how to prepare for what could amount to a third of our adult lives spent in retirement.

The study, conducted in June, measured preparedness across eight areas, including finances, health, housing, care and relationships. The findings are based on a survey of about 1,000 Canadians aged 18 and older.

Can Matt, 53, and Mary, 50, retire early and buy a cottage?

Canadians scored lowest on care, at 40 out of 100, on average. This measure looked at whether respondents had considered who might look after them as they age, researched long-term care options and discussed their preferences with loved ones.

Housing was another weak spot, with an average score of 53 out of 100.The study examined whether Canadians had considered how well their homes would accommodate them as they age, and if they included features such as accessible entrances, main-floor living spaces and mobility supports.

Retirement plans often don’t account for how people’s needs may change as they get older, said Patrick Graham, chief executive officer of Manulife Canada, in an interview.

“Whilst people are living longer, they’re not necessarily living those later years in the same quality of life and the same health as they had potentially expected,” Mr. Graham said.

While Canadians’ life expectancy continues to increase, Statistics Canada data show that how long people can expect to live in good health has been declining among older Canadians. After years of improvement, that metric began falling after 2017, even before the COVID-19 pandemic.

Tighter immigration rules put nursing homes at risk of losing foreign workers, long-term care providers say

Mr. Coughlin said one reason people may not be adequately preparing for their future health needs could be that they struggle to imagine what their lives will look like decades from now.

“The volume, the velocity and complexity of daily life makes it very difficult for me to anticipate my life tomorrow,” he said.

The Canadian index in the study provides a benchmark for tracking preparedness over time. Updated U.S. findings show Americans also scored an average of 60 out of 100.