Life’s brighter under the sun · Projected future costs are for demonstration only. They will vary according to individual circumstances. ... mostly affects her hands. Both Paul

Life’s brighter under the sun

the 5 stages of care:

a journey through

retirement

Point in time Health statusLifestyle Care & support Costs





Assumptions and disclaimers:

1. Theassumedrateofinflationusedtoprojecthealth-carecostsis4%annually.Somecostsintheearlystagesofcaremayhavealowerassumedinflationrate.Theactualrate

ofinflationmayvary.SunLifeFinancial’sexperiencewithhealth-careinflationisthattherateaveraged4%acrossCanadaoverthepast10years.Source:SunLifeFinancial

HomecareSurvey,2011.

2. Currentcostsreflect2012amountsinOntario.Wherepossible,costsweresourcedfromcompaniesoperatingonanationalbasisthroughoutCanada.TothebestofSunLife’s

knowledge,allinformationincludedisaccurateandunbiased.However,SunLifeFinancialdoesnotguaranteetheaccuracyorcompletenessoftheinformation.

3. AuthorizationbyOntarioDrugBenefitisrequiredforsomedrugtherapiestobefullycovered.Intheseexampleswehaveassumednoauthorizationwasgivenandsomeof

themedicationsdescribedarethefullfinancialresponsibilityofthepatient.

4. Long-termcareisnotincludedintheCanadaHealthAct.Provincialgovernmentsmayoffersubsidizedcare,butcoverageislimitedanditvariesfromprovincetoprovince.

Currentcostsreflect2012subsidizationamountsinOntario.

5. Projectedfuturecostsarefordemonstrationonly.Theywillvaryaccordingtoindividualcircumstances.Currentcostsarecompoundedannuallythendividedby12togivea

projectedmonthlycost.

T H e 5 STAg e S O F C A r e : A j O u r n e y T H rO u g H r e T I r e m e n T 3

Preparingforhealthneedsandcostsinretirement

Formany,retirementmeanshavingmore

timetodothethingsyoureallyenjoy–

liketravelling,volunteeringorpursuing

hobbies.Andthankstomedicaladvances,

thetimeyouspendinretirementcould

lastasmuchas30yearsorlonger!

Withage,however,comeschanginghealth-careneeds.Astimegoeson,you’lllikelyneedmorehelpwithyourpersonalandphysicalcareandofcourse,therewillbecoststhatcomealongwiththoseneeds.

Inretirement,healthneedsandcostsusuallyprogressgraduallythroughwhat’scalledthe 5 stages of care.*Let’slookatanexampleofhowacouple,PaulandLily,experiencethesefivestagestogetherandthetypesofcoststheyencounteralongtheway.

meetPaulandLily

PaulandLilymetincollegeandmarriedshortlyaftergraduation.Theytookafewyearstofocusonstartingtheircareers–PaulasanengineerandLily,ateacher–beforeplanningafamily.

Bytheirearly30s,theircareersweregrowingandsoweretheirthreeyoungchildren:Dan,Lauraandmark.Althoughitwassometimesbusierthanexpected,itwasreallyimportantforthemtobeactiveintheirchildren’slivesthroughfamilyvacations,dancerecitals,hockeygames,movienights,younameit.

WhenPaulturned65,bothPaulandLilydecideditwastimetoretire;theyjustcouldn’twaitanylongertolivetheirretirementthewaytheyplanned.

now,let’sseehowPaulandLilymovethroughthestagesintheirretirement–andwhatthatmeanstotheirfamily,lifestyleandexpenses.

Point in time Health status Lifestyle Care & support CostsPoint in time Health status Lifestyle Care & support CostsPoint in time Health status Lifestyle Care & support Costs

Point in time Health status Lifestyle Care & support CostsPoint in time Health status Lifestyle Care & support Costs

* The 5 stages of care were developed by Dr. Mark Frankel and his team at Taking Care Inc.

4 T H e 5 STAg e S O F C A r e : A j O u r n e y T H rO u g H r e T I r e m e n T

stage 1: IndependenceThe Independence stage isaboutenteringintoretirementself-sufficientandabletomanageanyhealthproblemswithoutspecialcareorsupportfromfamily.

nearly three-quarters of canadians (73%) have a good feeling about their overall health. and more than eight in 10 (81%) believe they could improve it if they made healthier choices, such as exercising more.

Source: Sun Life Canadian Health Index Report, 2012.

What’sgoingonwithPaulandLilynow?

Lily(65)andPaul(67)arebothretired.Theiryoungestson,markissingleandlivesnearby.TheirdaughterLaurajustgotmarriedandalsolivesnearby.Andtheireldestson,Danlivestwohoursaway,ismarriedandraisingtwoyoungboys.

BothPaulandLilyareinrelativelygoodhealthandkeepphysicallyactive.Paulhasmanagedhischolesterolandbloodpressurelevelswithmedicationforyears.Hewasrecentlydiagnosedwithdiabeteswhichhemonitorsregularlyandcontrolswiththehelpofmedication.AndLilyistakingmedicationtodealwithmildrheumatoidarthritiswhichmostlyaffectsherhands.

BothPaulandLilyintendtomaintainanactivelifestyleinretirement.PaulisanavidswimmerandLilyenjoysyogaandaquafitattheirlocalcommunitycentre.

Theirprizedpossessionistheircottageandtheyspendsummersswimming,bikingandbarbecuingwithneighbours.Inthewinter,theystayactivethroughcommunityinvolvementandtakeatriporcruiseeverycoupleofyears.

PaulandLilyareenjoyingtheirretirementtothefullest.Theyseefriendsregularly,andvisitwiththeirchildrenandgrandchildrenoften.

Inadditiontothecoststhatarecoveredbythegovernment,PaulandLilyspendacombinedtotalofabout$215per monthontheirmedicationsandgymmemberships.

Point in time Health status Lifestyle Care & support Costs




Point in time Health status Lifestyle Care & support CostsFa

Ct



Here’sabreakdownoftheirhealth-relatedcostsinStage1:

Description tOtaL monthly cost

Covered by government

tOtaL out-of-pocket monthly costs

Paul 10mgofrosuvastinand10mgofezetrolforcholesterol

1,000mgmetforminfordiabetes12.5mgofHydrochlorothiazideand10mgramiprilforhypertension

$119.69 $47.59 $72.10

Lily 100mgCelebrexforarthritis $67.20 $0 $67.20Paul and Lily Familymembershipattheirlocal

communitycentre$75 $0 $75

tOtaL $261.89 $47.59 $214.30

InStage1,PaulandLily’smonthlyhealth-careneedscostthem$215.


Askyourself:

Whenyouthinkaboutyourretirement,howdoyoupicturespendingyourtime?

Isimprovingyourhealthorbecomingmoreactiveapriorityforyou?

Areyoulivingwithanyspecifichealthissuesrightnow?


an estimated 3.8 million canadians aged 45 or older provide informal, unpaid care to seniors – a quarter of them are seniors themselves.

Source: Statistics Canada, Health Reports, “Informal caregiving for seniors”, September 2012.

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t

stage 2: InterdependenceThe Interdependence stageisaboutstartingtoneedhelpfromfamilymemberswithroutinetaskslikecooking,homemaintenance,shoppingandbankingbecausethesebecomephysicallyormentallydifficulttodo.


Lily(75)andPaul(77)havebeenretiredforover10yearsnow.Theirsonmarkissingleandtravelsfrequentlyforwork.TheirdaughterLauralivesnearby,ismarriedandexpectingherfirstchild.AndtheireldestsonDanlivestwohoursaway,ismarriedandraisingtwoboys.

Paulhadaseriousheartattacktwoyearsago.Surgerysuccessfullyunblockedhisarteriesandhecontinuestomanagehischolesterolandbloodpressurelevelswithmedication.Hisdiabetesisundercontrolwiththehelpofmedication.

Lily’sarthritishasworsened,reducingthestrengthinherhandssignificantly.Afterafallthatresultedinawristfracture,shefoundoutshehasosteoporosisandnowtakesmedicationtomanageit.

PaulandLilystillspendmostofthesummeratthecottage.Inthewinterthey’reactiveatthepool,playingcardsandgoingtothetheatrewithfriends.They’vefounditmoredifficulttomaintaintheirhomeandcottageontheirown.Togetaway,they’relookingintogrouptoursasawaytokeepuptheirtravelsinasafe,funway.

Withtheirchildren’shelp,PaulandLilyrecentlyhiredaweeklycleaningservice,lawncareandsnowremovalfortheirhome.Theystillseefriendsregularly,andvisitwiththeirchildrenandgrandchildrenoften.

Sincetheirchildrentookoverallcottagemaintenance,they’vebeenabletoenjoythecottagewiththem.Anemergencycallsystemwasinstalledathomeandattheircottage.

Inadditiontothecoststhatarecoveredbythegovernment,PaulandLilyspendacombinedtotalofabout$670 per monthontheirmedications,gymmemberships,homemaintenanceservicesandpersonalsecuritysystems.














Paul 81mgASAand50mgAtenololforpostmyocardialinfarction

20mgofrosuvastinand10mgofezetrolforcholesterol

1,000mgmetforminand100mgofjanuviafordiabetes

12.5mgofHydrochlorothiazideand10mgramiprilforhypertension

$245.62 $168.10 $77.52

Lily 100mgCelebrexand15-20mgmethotrexate(weekly)forarthritis

1,200mgCalcium,800uIVitaminDand70mgAlendronate(weekly)forosteoporosis

$119.77 $48.07 $71.70

Paul and Lily Familymembershipattheirlocalcommunitycentre

emergencycallsystemsattheirhomeandcottage

Cleaningservices(3hours,bi-weekly) yardmaintenanceandsnowremovalservices

$523.42 $0 $523.42

tOtaL $888.81 $216.17 $672.64

InStage2,PaulandLily’smonthlyhealth-careneedscostthem$670.

Askyourself:

Wheredoyouplantoliveinretirement?Willyourfamilylivenearby?

Doyouhaveanyexperienceprovidingcaretoanelderlyrelativeorfriend?

Areyouconcernedaboutanyhealthconditionsthatruninyourfamily?

stage 3: SupportivelivingThe supportive living stageisaboutneedingevenmorehelpwithroutinetasksandsomehelpwithpersonalcarelikebathinganddressing.Supportisusuallyin-homeandcomesfrombothfamilyandpossiblysomeformalcareservices,likethoseofferedbypersonalsupportworkers.

40% of caregivers expect they will contribute financially to the care of a family member. the actual number is 83%.

Source: Age Wave (sponsored by Genworth Financial Inc.), Our Family, Our Future: The Heart of Long-Term Care Planning, 2010.

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Lily(78)andPaul(80)havemovedintoaretirementhomethatoffersmultiplelevelsofcare.Theirsonmarkissingleandrelocatedtotheu.S.forwork.TheirdaughterLaurarunsherownbusinessandismarriedwithtwoyoungchildren.eldestsonDanstilllivestwohoursaway,isrecentlydivorcedandraisinghistwoteenageboys.

Paulexperienceschestpain(angina)whenheexertshimself,andbecauseofhisdiabeteshisvisionisn’twhatitusedtobe.He’salsobecomingmoreforgetful.AndLilycontinuestomanageherarthritisandosteoporosiswithmedication.

PaulandLilyrecentlysoldtheirhomeastheywerefindingitdifficulttomaintain.Theydecidedtomoveintoaretirementhomebecauseperformingpracticalchoreslikemealpreparation,cleaning,shoppingandtransportationweredifficulttodoontheirown.Theirsonslivetoofarawaytohelpoutonadailybasisandtheirdaughterisbusyrunningabusinessandattendingherchildren’sactivities.Havinganactivesociallifeandvisitingtheirchildrenandgrandchildrenisimportanttothem.

PaulandLilyenjoythecomfortsoftheirretirementresidenceandarenowreceivingthesupporttheyneed:meals,housekeeping,medicationadministrationandassistancewithbathingiftheyneedit.Theyresideinasectionoftheretirementhomewhereonlyalowlevelofcareisoffered.

Theymaintainanactivesociallifebytakingpartinseveralonsitefitnessandsocialprograms,theyenjoyweekendvisitsandoutingswiththeirchildrenandgrandchildren,andtheyaccompanytheirchildrenandgrandchildrenonshort-termvisitstothecottage.

Inadditiontothecoststhatarecoveredbythegovernment,PaulandLilyspendacombinedtotalofabout$6,575 per monthontheirmedicationsandresidentialfees.













Paul nitrolingualsprayforangina81mgASAand50mgAtenololforpostmyocardialinfarction



12.5mgofHydrochlorothiazideand300mgIrbesartanforhypertension

5mgAriceptforforgetfulness/dementia

$429.07 $175.57 $253.50


1,200mgCalcium,800uIVitaminDand70mgAlendronate(weekly)

$119.77 $48.07 $71.70

Paul and Lily rentfora1-bedroomsuite(couplesrate)intheretirementhome

$6,250 $0 $6,250

tOtaL $6,798.84 $223.64 $6,575.20

InStage3,PaulandLily’smonthlyhealth-careneedscostthem$6,575.

Askyourself:

Wouldyouconsidermovingtoaretirementcommunityoneday?

Wouldyoufeelcomfortablerelyingonafamilymemberforhelpwithyourpersonalcare?

Haveyoutalkedtoyourfamilyaboutyourexpectations?

stage 4: CrisismanagementThe Crisis management stageisaboutbecomingdependentonothersforextensivehealthandpersonalcareneeds.Careneedsaredifficultforthefamilytomanageandtheyturntocareprofessionalsandformalcaremanagementforsupport.

the average 65 year old couple has an 82% chance that at least one of them will need long-term care in their retirement.

Source: Munich Re, 2011.

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Lily(81)andPaul(83)liveinthememorycareunitoftheirretirementhome.Theirsonmarkismarriednowandstilllivesintheu.S.forwork.DaughterLaurarunsherownbusinessandismarriedwithtwoyoungchildren.AndsonDanlivestwohoursaway,isdivorcedandraisingtwoteenageboys.

Paulhasdifficultywithhisvisionbecauseofhisdiabetes,andhisdementiahasprogressed.Heneedssupervisiontotakehismedicationsandavoidwanderingandneedscuesforeating,dressingandhygiene.

Lilyhadarecentfallandsufferedfromcompressionfracturesinhervertebrae–acommonailmentforpeoplelikeLily,whosufferfromosteoporosis.Shetakesmedicationtomanageherarthritisandtohelpwiththepain,andsheseesaphysiotherapistregularly.

PaulandLilyarecomfortablelivingintheretirementresidencesettingwheremealpreparation,cleaningandtransportationarearrangedforthem.Theywanttocontinuelivingtogether,butPaul’sdementiaischallengingforLilytocopewithonherown.Theydecidedtomovetothememorycareunitoftheretirementhome.

TravellingcanbeexhaustingforLily,andPauliseasilydisorientedinunfamiliarplaces,butkeepingintouchwiththeirfriendsandfamilyisstillveryimportanttothem.

PaulandLilyarenowreceivingthesupporttheyneedinthememorycareunitoftheretirementhome:meals,housekeeping,laundry,medicationadministration,assistancewithbathingasneededanddailypersonalcareassistancewithcueingandsupervision.Lilyalsoseesaphysiotherapistthreetimesaweek.

WiththeadditionaldailyhelpforPaul,Lilyisabletostayinvolvedinmanyofthesocialprogramssheenjoysattheresidence.Lilyfindsitdifficulttotraveloutsidetheresidence.Theirchildrenandgrandchildrenvisitwhentheycan,butdistanceisbecomingabarrier.It’smorecommonforthemtokeepintouchwithfamilyandfriendsbyphone.

Inadditiontothecoststhatarecoveredbythegovernment,PaulandLilyspendacombinedtotalofabout$9,615 per month ontheirmedicationsandresidentialfees.














5mgAriceptforforgetfulness/dementia

$536.85 $168.10 $368.75


1,200mgCalcium,800uIVitaminDand70mgAlendronate(weekly)and37.5mgTramacetforosteoporosis

Physiotherapyat3hours/week

$1,593.38 $48.07 $1,545.31

Paul and Lily rentfora1-bedroomsuite(couplesrate)inthememorycareunitoftheretirementhome

$7,700 $0 $7,700

tOtaL $9,830.23 $216.17 $9,614.06


Askyourself:

Doyouhaveanyexperienceorhaveyouwitnessedfamiliescopingwithasuddenseriousillness?

Howconfidentareyouthatthegovernmentwillcoveryourhealth-careneedsinretirement?



T H e 5 STAg e S O F C A r e : A j O u r n e y T H rO u g H r e T I r e m e n T 1 1

stage 5: DependenceThe Dependence stageisaboutneeding24-hourmedicalsupportandcare.extensivecareneedscannolongerbemanagedbymostfamiliesandtheresponsibilityforcaregivingistransferredtofull-timecaregiversinalong-termcarefacility.

an estimated $1.2 trillion will be needed to provide long-term care to the baby boomer generation. current government programs will only cover about half of this liability. individuals will need to fund the remaining $590 billion shortfall – that’s equal to about 95% of all individual registered savings plans in canada today.

Source: Canadian Life and Health Insurance Association (CLHIA), 2012.

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Lily(86)andPaul(88)liveinthesameretirementhome,butLilylivesintheassistedcarewingandPaullivesinthelong-termcarewing.Theirsonmarkismarriedandlivesintheu.S.forwork.DaughterLaurarunsherownbusinessandismarriedwithtwochildren.AndsonDanlivestwohoursaway,isdivorcedandhistwosonsattenduniversity.

Paul’sdiabetesanddementiahaveworsened.Heisnolongermobileandnowrequirescontinualsupervisionanddailymedicalattention.Lily’sarthritisandosteoporosishaveprogressedandshereliesonanelectricwheelchairtogetaround.Shetakesseveralmedications,seesaphysiotherapistregularlyandneedsassistancewithmostofherdailyactivities.

Lilyremainssocialinherretirementcommunity,butcarefullychoosestoparticipateinactivitiesthatmatchherphysicalabilities.TravellinglongdistancesistooexhaustingforLily,butsheenjoysgettingoutsideeachdayandvisitingwithPaul.

AlthoughitwasdifficultforLilytodecidetochangetheirlivingarrangements,theynowreceivetheappropriatelevelofcarethateachofthemdeservesandtheystillliveinthesamecommunitymakingdailyvisitsconvenient.Paulstaysinaprivateroominthelong-termcareunitwherehereceives24-hourmedicalcareandsupervision.

Lilylivesina1-bedroomsuiteintheassistedcareunit,offering:meals,housekeeping,laundry,medicationadministration,anddailyassistancewithheractivitiesofdailyliving–bathing,dressing,transferringandtoileting.Shealsoseesaphysiotherapistthreetimesaweek.Theirfamilyvisitsonweekendsandholidays.Thefacilityoffersareasandeventsthatsupportfamilyvisitswiththegrandchildren.

Inadditiontothecoststhatarecoveredbythegovernment,LilyandPaulspendacombinedtotalofabout$12,060 per monthonmedicationsandresidentialfees.














5mgAriceptand10mgmemantineforforgetfulness/dementia

$536.85 $168.10 $368.75


1,200mgCalcium,800uIVitaminDand70mgAlendronate(weekly)and37.5mgTramacetforosteoporosis

electricwheelchairrentalPhysiotherapyat3hours/week

$1,873.38 $48.07 $1,825.31

Paul and Lily Privateroom(co-paymentrate)forPaulinthelong-termcaresectionoftheretirementhome

1-bedroomsuite(singlerate)forLilyintheassistedcaresectionoftheretirementhome

$9,866.58 $0 $9,866.58

tOtaL $12,276.81 $216.17 $12,060.64


Askyourself:

Haveyouevermadearrangementsforanagingfamilymembertomoveintoanursinghome?

Whatkindofaccommodationsandserviceswouldyouprefertohave?

Wherewouldyourspouseliveifyoumovedtoanursinghome?




PaulandLily’sjourneythroughthe5 stages of care:

AsPaulandLilyagedandmovedthroughthefivestages,theiremergingcareneedsnotonlymeantadditionalexpenses,butitalsoaffectedtheirlifestylechoicesandtheirfamily’sroleintheirretirement.

Twentyyearsfromnow,theimpactofthesecostscouldbeevenmoresignificantconsideringthehealth-carerateofinflationhasdoubledthegeneralinflationrateoverthepast10years–at4%peryear1comparedto2%peryear2.


$215/month

Independence


$670/month

Interdependence


$6,575/month

supportive living


$9,615/month

Crisis management


$12,060/month

Dependence

14 T H e 5 STAg e S O F C A r e : A j O u r n e y T H rO u g H r e T I r e m e n T14

1 Sun Life Financial Homecare Survey, 2011. 2 Statistics Canada CANSIM, 2012.

Askyourself:

Haveyouconsideredwhatyourhealth-carecostscouldbeinretirement?

WhatcanPaulandLilydotoprotecttheirretirement?

We’veseenhowmuchPauland

Lilywillspendontheirchanging

health-careneedsastheyage.

Withoutaretirementplanthat

addressestheseemergingcare

costs,PaulandLilywillbeatriskof

outlivingtheirmoney.Toprotect

theirretirement,theycanchoose

tousewealthsolutionstoself-fund

therisk,ortransfersomeofthat

risktohealthinsurance.

Planning ahead with insurance solutions:

Personal health insurance helps pay for minor health

expenses–they’llbereimbursed,uptopre-determined

maximums,forthecostofeligiblemedicalprescriptions,

therapiesanddentalexpenses.

Critical illness insurance helps pay for expenses related

to a major health event –they’llreceivealumpsum

paymentifdiagnosedwithacoveredconditionandthey

survivethewaitingperiodsetoutintheirplan.

Long term care insurance helps pay for ongoing care

expenses–they’llreceiveanincome-stylebenefit,

meaningtheyreceivemoneyonaregularbasiswhen

theybecomephysicallydependentrequiringsubstantial

assistanceorconstantcare.




With the right plan in place, you can prepare for your health-care needs in retirement and the costs that come with them. Talk to an advisor about Money for Life™.

Life’s brighter under the sun©SunLifeAssuranceCompanyofCanada,2013.SunLifeAssuranceCompanyofCanadaisamemberoftheSunLifeFinancialgroupofcompanies.

Planningforretirement?Itstartswithaconversation.

Documents

Life’s brighter under the sun · Projected future costs are for demonstration only. They will vary according to individual circumstances. ... mostly affects her hands. Both Paul