Canadians Need to Consider Longevity Risks

By Andrew Rickard | July 31 2014 07:25AM

By 2061, Statistics Canada predicts that there will be more than 78,000 centenarians living in Canada. In a report published on July 30, the BMO Wealth Institute suggests people should consider the risks associated with this higher rate of life expectancy.

"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," comments Chris Buttigieg, senior manager, wealth planning strategy at BMO Financial Group.

The BMO report shows that 74% of those surveyed believed that medical and health-related costs will be their most significant expenses during retirement. On average, respondents expect to spend an average of $5,391 per year on out-of-pocket medical costs after the age of 65. To cope with these issues, Canadians said they plan to eat well (55%), exercise (47%), and visit their doctor regularly (43%).

When considering the prospect of living to a hundred, 56% of those surveyed said they were were concerned about losing the mental abilities, while 47% said they were worried about relying on others to take care of them. Another 46% also said they were anxious about the death of loved ones.