Preparing Canadians for Tomorrow with Better Financial and Care Planning

Canada is experiencing unprecedented aging of the population. The population of citizens aged 85 and over is projected to more than triple, up to over 2.6 million by 2050.

The implication of this demographic shift is an increased burden in financial and human terms and specifically that will involve end-of-life planning, health care decisions, and preservation of financial assets within the individual. Despite the widespread awareness about these problems, most Canadians remain unprepared.

A recent study by BC Wealth Management shows that most people in Canada (more than 90 percent) realize that having an estate plan is important, but less than half have a will, and fewer still have a power of attorney. This disjuncture is not only a legal matter, it is an increasingly widespread social matter.

A National Partnership Supporting Older Canadians

To assist in dealing with this gap, RBC Wealth Management has collaborated with the National Institute on Ageing (NIA) at Toronto Metropolitan University in a three-year program dedicated to the education of older Canadians and their families.

Such collaboration is expected to deliver evidence-based advice and sources on estate planning, powers of attorney, prevention of elder abuse, and state planning of advanced care.

The company alliance addresses an urgent need that became exacerbated by the COVID-19 pandemic. Families across the country found themselves in a very challenging scenario when discussing health care, finances, and incapacity with members of their family with no means or methods in place to broach the subject successfully. The RBCNIA program is devised to change that reality through creating awareness and developing practical solutions.

Understanding the Risks of Being Unprepared

The statistics speak for themselves:

• Over 80 percent of Canadians have no written plan for future health care
• Less than 50 percent have discussed their care preferences with family
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• 71 percent have not appointed a legal power of attorney
• Fewer than 35 percent of adults over age 45 have a comprehensive estate plan
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Elevating the Estate Planning Conversation

The collaboration between RBC and the NIA advocates for a broader perspective of aging, not only financial preparation, but planning toward independence, dignity, and healthy living in advanced age. This entails going beyond plain legal papers to cover preferences of care, values, and goals of quality of life.

The given deeper conversations are particularly essential since the cost of long-term care is still increasing. According to government statistics, these costs may rise with time, reaching over 70 billion dollars by the year 2050 as compared to the current number of 22 billion. Families in Canada are under increasing pressure, whether financial or otherwise, as one in every four Canadians take on the responsibility of a caregiver.

The Role of Professional Advisors

Financial experts and accountants are important in this process. Firms such as SRJ Chartered Professional Accountants can do more than taxation advice,they can assist their clients with wealth preservation, estate plans, and business continuity. Having skilled advisors will also assist in making sure that legal and financial systems are perfectly accommodated and in place.

An integration of all factors, entailing tax strategy, financial planning, and consideration of care, will ensure that the clients are at peace and the families are better safeguarded. This minimizes the chances of lapses in the records, tax fines, and conflicts in times of disability or loss.

Building a Culture of Preparedness

To continue the trajectory of success, it will rely on the continued education of the population and the inclination of families to actively discuss. Among the main implications of such a campaign will be:

• Increased use of wills, power of attorney, and advance directives
• Improved advisor-client dialogue on aging and long-term care
• Greater coordination between legal, financial, and health planning
• Broader access to public resources for aging Canadians

Conclusion

The ageing population poses quite a challenge, but it is also an opportunity in Canada. As we invest in financial literacy, legal transparency, and personal readiness, we will be able to help our older adults live with pride and ease, with their heads held up. The cooperation between the RBC and the NIA is a very well-timed activity in which two institutions can work together in order to achieve the greater good.