paing_for_care_img

Cared Upon 26

Paying for Care in Canada | The Basics

<p>Senior Care can be tricky and complicated. If you or your loved one is a retired senior or is preparing for retirement, it’s crucial to know your options for you to retire with ease and security. Thankfully, there are financial assistance programs from the government that can help you boost your retirement income. In this section, we’ll discuss the available financial help for seniors towards a retirement you can fully savor without worrying about falling off short on your finances.&nbsp;</p>

<p>There are federal government benefits for seniors that you can take advantage for a more financially secured retirement. Options such as federal grants for seniors in Canada, federal government benefits for seniors, and provincial grants for seniors, are just some of the well-funded programs in the country to help you have a steady retirement income.</p><p>To name a few, you can be eligible for some programs if you pass particular criteria and requirements as a senior living in Canada. Government financial assistance for seniors like Old Age Security Pension (OAS), Canadian Pension Plan Retirement Pension (CPP), Guaranteed Income Supplement (GIS), Allowance Program, and Allowance for the Survivor are just a few of the benefits that you can choose from.&nbsp;</p><p>There are also other financial resources for seniors to receive such as pensions, War Veterans Allowance (WVA), mortgages, tax refunds, rebates, and more, which you can benefit from after retirement.</p>

Who Pays for Care? 

Cared Upon 27

Paying for Care in Canada | Government Contributions

<p>The amount government pays for senior care and the benefits seniors can receive depends on a few criteria such as contributions, average annual earning, and the time you started your pension. Some other parameters such as your health, if you’re married, or whether you’re planning to continue working might also affect the amount of financial assistance for pensioners.</p>

<p>Across Canada, there are two fundamental aids seniors usually use, which are the Canadian Pension Plan Retirement Pension (CPP) and Old Age Security Pension (OAS). You may want to seek help from a certified financial planner to be able to know which programs are the best for you. You can also check out Service Canada or reach out to 2-1-1 for more information about government financial assistance for seniors.&nbsp;</p><h4>Old Age Security Pension Amount</h4><p>When you qualify for the Old Age Security Pension (OAS), you can receive up to $614.14 a month, depending on how you long lived in Canada or particular countries starting 18 years old. You can as well receive extra payment based on your income under the other variants of OAS, for instance, the Guaranteed Income Supplement (GIS), Allowance Program, Allowance for the Survivor, and other CPP benefits.</p><h4>Canadian Pension Plan Retirement Pension (CPP) Amount</h4><p>In 2019, seniors who are new recipients of this benefit aged 65 who will qualify for the CPP can receive a maximum monthly amount of $1,154.58. However, the average monthly amount a senior receives is $679.16. There are varying factors for how much you will receive. For instance, your time off work can affect the amount that you will receive in a monthly basis. At the same time, It is also possible for you to work while you receive the pension.</p>

<h4>Guaranteed Income Supplement (GIS)</h4><p>The Guaranteed Income Supplement (GIS) is monthly government assistance for seniors with low income under OAS. This program is a non-taxable benefit eligible for seniors with a low income, living in Canada.&nbsp;</p><p>You can be eligible for this benefit if your income is below $18,624, and you are single, widowed, or divorced. If you have a spouse or a common-law partner, the amount you will receive will depend on your income and your partner’s income combined.&nbsp;</p><p>You can be eligible for GIS if your income and your partner’s income is below $24,576, and your partner receives the full OAS pension. If your spouse or your common-law partner does not receive an OAS pension, you may be eligible for GIS if you and your partner’s income is below $44,640.&nbsp;</p><p>While, if your partner receives an allowance, you can be eligible for this program, and your income and your partner’s combined income is below $44,640.</p><h4>Allowance Program</h4><p>The Allowance Program is a monthly benefit over and above OAS. Low-income seniors aged 60-64 with a spouse or a common-law partner who is a recipient of Old Age Security and the Guaranteed Income Supplement may be eligible for this benefit.</p><p>If you are a Canadian citizen or a legal resident of the country, you can be eligible for this program if your annual income and your spouse/common-law partner combined income is below $34,416.</p><h4>Allowance for the Survivor</h4><p>This benefit can be applied to low-income seniors living in Canada who has a deceased spouse or a common-law partner. This allowance is monthly given to seniors who will meet a certain criterion. If you want to know more about this benefit, please visit the website of the Government of Canada.</p><p>You can be eligible for this benefit if you have a deceased spouse or common-law partner and you haven’t remarried or entered a new relationship with a common-law partner. Your annual income must be below $25,080 to be eligible for this program.&nbsp;</p>

Canadian Government Subsidies for Seniors

Government Assistance for Seniors with Low Income

Cared Upon 22

Paying for Care in Canada | Stretching Your Dollars

<p>Not everyone is entitled to government support for their care. &nbsp;If your care needs are not deemed critical, or if you are considered to have a sufficient amount of personal capital, you may be liable for a significant portion of your retirement care expenses. &nbsp;It's important that you take stock of the different vehicles you have to fund your care from your personal finances. &nbsp;If you plan it early enough, you can have more than you need for your care. &nbsp;The certainty you can give yourself around your finances in retirement can save you a significant amount of anxiety. &nbsp;Below are some of the vehicles you could have access to finance your care.&nbsp;</p>

<p>Instead of using money from your monthly savings, you can acquire payouts from investments such as home equity, savings, and other sources of funds, which can help you with your expenses. Similar to other investments, however, there are always risks involved in fund investments, the stock market, and so on. Still, investments are better to have to maximize your income resources and retire with security. The best way to know your best action when it comes to investments is to consult a financial advisor.</p>

<h4>Annuities</h4><p>There are various annuities that you can opt for when it comes to preparing for your retirement. Annuities are also one of the insurance products, which offer seniors payments, typically monthly, which can be based on your current interest rates, investments, and terms of contracts.&nbsp;</p><p>There are registered and non-registered annuities, and the latter can come with tax deduction from a selection of rates. For instance, a straight life annuity can offer income for a whole lifetime. On the other hand, joint life annuities provide income for spouses.&nbsp;</p><p>If you are paying for senior care, such as a paid annuity on your own or through a sponsored pension from an employer, you can find out the status of your Annuity by reaching out to the Canadian Government Annuities Branch.&nbsp;</p><p><i><strong>Other insurance products you can consider are the following:</strong></i></p><ul><li><i>Long-term care insurance&nbsp;</i></li><li><i>Segregated funds</i></li></ul>

<p>You have an option to continue working even after retirement as another way to boost your income. Some seniors stay at work out of need, while others by choice. On another note, studies show that working is good for health. At least if you choose to do part-time work, your job can keep you active, and stay in the society’s working bracket, therefore delivering positive feelings of providing value. More importantly, continuing working will allow you to make more money.&nbsp;</p><p>Many seniors fail to prepare for their retirement. In fact, according to CARP, 600,000 seniors in Canada live in poverty due to the lack of planning for their retirement or due to a lack of knowledge about the financial programs available for them.&nbsp;</p><p>There are multiple solutions to boost your income and some of them is by taking advantage of the available financial assistance programs designed for seniors from the government, or your personal sources of funds, which you can acquire payouts after you retirement.</p>

Paying For Care

Learn about your different financial options to pay and budget for senior care.

Paying for Care in Canada | The Basics

Paying for Care in Canada | Government Contributions

Paying for Care in Canada | Stretching Your Dollars