HOOPP Research Suggests Nearly 323,000 Canadians have Inadequate Retirement Income When Long-Term Care Costs Are Factored in

TORONTO, ONTARIO--(Marketwired - Dec. 12, 2016) - Recent research conducted by The Healthcare of Ontario Pension Plan (HOOPP) and the University of Toronto's Institute for Health Policy, Management and Evaluation (IHPME) provides an unprecedented analysis of the impact of out-of-pocket healthcare expenses on Canadian retirement security.

The study's findings demonstrate that approximately 323,000 Canadians have inadequate retirement income once long-term care costs are factored in, which can grow to approximately 815,500 by 2038 if factors remain unchanged.

And the percentage of 85-year old women with inadequate retirement income rises from 25% to 44% when long-term care costs are considered (the study defines inadequate retirement income as those with less than a 50% net income replacement rate).

"There is a domino effect caused by the erosion of personal savings and earnings among the elderly," says Victoria Hubbell, Senior Vice-President - Strategy & Stakeholder Relations at HOOPP. "This retirement insecurity will eventually impact Canadians who support the GIS, OAS and the entire healthcare system."

HOOPP's research takes into consideration the wide range of costs associated with long-term care including:

• Publicly funded nursing homes;
• Publicly funded home care;
• Privately funded assisted living in seniors' residences.

In 2015, there were 500,000 women in Canada over the age of 85 of which 13.2% experienced negative net income replacement rates. For these individuals, post-retirement consumable income is too little to cover long-term care costs, leaving no room for anything else.