The Financial Impact of Caring for Elderly Relatives

With Canada’s large aging population, longer life spans, and rising costs of paid care, many adult children are taking on a greater role in caring for their aging parents. The majority of this unpaid care is provided by women, many of whom are also raising children and often navigating their career ambitions at the same time.  

Caregiving can mean stepping away from the workplace, postponing career plans or working fewer hours — which can be a major hit on finances. The direct costs of caring for an aging parent can strain finances even further. A recent survey by PetroCanada Caremakers Foundation found that 60% of unpaid family caregivers spend up to $500 per month ($6,000 per year) on care-related costs.

Costs associated with caring for an elderly relative

While many older adults enjoy vibrant health well into their advanced years, others with chronic conditions and disabilities require support. Whether your parent lives on their own, with you or in an assisted living facility, there are expenses you can expect down the line so you can plan for them.

At-home costs

Independent older people may need help with household chores like cleaning and lawn mowing. Less able-bodied people may need help with personal care, along with meal preparation and laundry. Rates for hiring a personal support worker (PSW) from a home care agency can run between $28 and $35 per hour, adding up to several hundred dollars per week.  

There are additional at-home costs you can expect, including: 

• Transportation: Older parents who are no longer able to drive or take public transit may depend on their adult children to get them where they need to go or look to hire outside help to drive them.

• Medications and therapies: Some meds may not be covered by insurance plans. That goes for extra nutrients such as vitamins as well.  

• Medical equipment: Canes, walkers, wheelchairs, and visual and hearing aids may not be fully covered by insurance plans. A parent who lives at home may also require expensive home upgrades, such as a walk-in shower or accessibility ramp.   

Assisted living costs

Retirement homes offer aging adults many forms of independence while also providing essential care. Many offer three meals per day, along with housekeeping services, recreation and on-site medical staff. These costs can range from $1,453 to more than $4,500 per month in Canada, with services such as  laundry, cable TV, internet and transportation incurring additional fees.    

Though Canada has a publicly funded healthcare system, nursing home care is not free. Long-term care is partially funded by the government, with the remainder (co-payment fee) paid for by the resident. In Ontario, for example, 2023 monthly rates ranged from $1,986.82 for a long-stay basic accommodation to $2,838.49 for a long-stay private room. The resident and their family may be responsible for the costs of medication, equipment or supplementary PSW (Personal Support Worker) care.  

Providing support for aging parents

Taking care of your parent in old age is a loving and noble act. Be sure to set realistic expectations — for both yourself and your parent — about what you can and cannot do, both physically and financially. You’ll have a better sense of what’s possible once you’ve explored available caregiving resources.

Financial resources available for caretaking Canadians

Whether you are providing minimal support or taking on full-time care duties, start with a close look at your financial situation, ideally with a trusted advisor, and seek support to cover expenses.

Financial resources are available to help offset the costs of care. Some programs are available specifically for low-income residents, so check these if they apply.

Federal and provincial government tax credits, claims and benefit plans

In Canada, adult caregivers may be eligible for several federal tax credits and claims, including: 

• The Canada Caregiver Credit (CCC): A non-refundable tax credit that applies if you support a spouse, common-law partner or dependant over 18 with a physical or mental impairment.

• The Disability Tax Credit (DTC): A non-refundable tax credit to help people with disabilities reduce their tax payments, and it can be claimed by a supporting family member.  

• The Home Accessibility Tax Credit (HATC): Helps cover expenses to improve home accessibility. 

• The Medical Expense Tax Credit (METC): Allows you to claim eligible medical expenses for qualifying dependents, including parents.

• Caregiver Recognition Benefit: Allows disabled veterans to access unpaid in-home care. 

The new Canadian Dental Care Plan includes dental benefits for seniors. To qualify, the individual must be without a dental insurance plan and have a net family income of under $90,000. 

In addition to federal support, provincial and territorial programs cover assistive devices, drug benefits and more. Your province may also offer some publicly funded home care.

Insurance benefits

Another way to offset the financial burden of unpaid caregiving is through caregiver insurance benefits. Canada has two national Employment Insurance (EI) benefits that apply to caregivers who are in the workforce: 

• The EI Compassionate Care Benefit (CCB): Available to people who need to take time off work to care for a seriously ill family member at risk of dying within six months.

• The EI Family Caregiver Benefit (for Adults): Available to those caring for a critically ill or injured person for up to 15 weeks. 

Employers can be another source of support through insurance or employee assistance programs (EAP), so be sure to discuss your options with your HR representative.

Local community organizations, foundations, and charities

Many local community organizations, as well as provincial and national organizations, provide financial support or cost-effective assistance. Government websites often provide guides with links to programs and services.

Make your caregiving journey more manageable

Caring for an aging parent requires a shift in priorities and resources. For one thing, it is often emotionally and physically draining work, so schedule regular times to regroup with self care. It can be a financially challenging time too, as you balance your own obligations with your parent’s needs. Being aware of not only potential costs but the support and resources available to you will make the journey a little easier.  

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