How to Afford a Retirement Home

Yes, the best way to save for retirement is to plan ahead. We hear it everywhere - from financial advisors, family, friends, articles, television. Its common knowledge that the earlier you start thinking about your retirement plans, the better prepared you will be when that time comes.

But, that's easier said than done. Life is full of little surprises that can quickly send retirement plans off-track, and sometimes, due to medical reasons or otherwise, entrance into a retirement home can become a matter of urgency.

Statistics Canada has reported that today's seniors are much better prepared for retirement than in generations past. "They are better educated, they are Internet savvy and they are active," the agency says. With easy access to financial resources at your bank or on the internet, it's easy to find help to find the funds needed for a quick move into retirement. So, even if you feel unprepared to face the costs of a retirement facility, take another look yourself and then get a second opinion. It may be well within your reach after all.

Government Aid, Tax Breaks
Lisa Visconti, customer relations manager at The Grenadier Retirement Residence in Toronto, agrees that seniors are reaping the benefits of good planning and "a lot have very good company or government pensions." She also recommends talking to your doctor if you have a disability. You could qualify to have part of your retirement costs written off simply by having him or her fill out a form.

The government can also help out if you need, but can't afford, a basic long-term retirement home room. You can apply to the Revenue Agency of Canada for a subsidy to bring down the cost to a level you can afford. This should help anyone in dire need of a long-term home.

Family
Another way to afford a retirement home is to look toward your family. Judy MacKenzie and her husband, Alton, legally separated on Dec. 11 after 45 years of marriage when Alton had to enter a home after having two strokes. Judy simply couldn't afford to support two different lifestyles. This is called involuntary separation, and if you qualify, the government could provide you with more benefits to account for this. Also, many retirement homes across Canada offer discounted rates for pairs to enter the same facility. So, even if you don't have a spouse, speak with family members about entering a retirement home with another family member. It not only will help offset the cost, but it makes the transition much easier when it's done with someone familiar.

Children can also be a great help in financing a sudden move into a retirement home. It may feel awkward at first, but you've spent your entire life providing for them! Let them repay the favor.