Three-quarters of Canadians feel that health and medical costs will have the biggest financial impact on their senior years, according to a report.
The BMO Wealth Institute Report, Living to 100: The four keys to longevity, finds that Canadians expect to spend an average of $5,391 a year on out-of-pocket medical costs after the age of 65.
The report notes that, in 1970, average life expectancy at birth in Canada was 69 years for males and 76 for females. By 2011, it had increased to 79.3 years for males and 83.6 for females.
Today, according to Statistics Canada, there are more than 5.3 million people in Canada age 65 or older, accounting for about 15.3% of the total population. By 2061, it is estimated that there will be more than 78,000 centenarians living in Canada.
“It’s clear there is a major demographic shift happening in our country. As Canadians’ longevity continues to improve, they should account for the health and financial issues that come with the possibility of living a longer life,” says Chris Buttigieg, senior manager, wealth planning strategy, with BMO Financial Group.
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