Once you turn 65, there’s a chance you’ll need some form of long-term care. Unfortunately, this care isn’t cheap.
Government-subsidized facilities set daily rates, but if you want a private or semi-private room in a non-subsidized home, costs can climb quickly. For instance, a 2022 study on private long-term care, released by Sun Life Financial, found that a private room in a non-subsidized facility can cost Canadians $6,000 or more per month.
Given the exorbitant cost of long-term care, many pre- and post-retirees wonder if they should stop saving for retirement and start saving for a “nice” nursing home, instead? But how much should you save? And for how long?
To answer these questions, it’s best to first understand what costs you may face.
How much do nursing homes in Canada cost now?
Let’s assume you are a 62-year-old pre-retiree. As the anxiety of age-related costs starts to build, it’s a good idea to see what care will cost across the country — and it turns out that the cost of a private room in a Canadian long-term care facility that is partially subsidized by the government varies widely by province:
- In Ontario, the maximum monthly rate for a long-term care home is about $2,085 for basic accommodation and $2,979 for private accommodation.
- In Alberta, continuing care accommodation charges run from $2,019 for a shared room to $2,759 per month for a private room.
- In the Northwest Territories rates for long-term care are among the lowest in the country at $897 per month, while British Columbia and New Brunswick trend higher from $3,574 to $4,723, respectively.
Assisted-living style residences, where residents still have some independence, typically range from $1,600 to $6,270 per month, depending on services and location.
What about government coverage?
Long-term care is partially subsidized by provinces in Canada. Here’s how it works:
- Daily room and board rates in long-term care homes are set by the provincial government. Residents contribute a co-pay amount, and the government covers the rest.
- Eligibility usually requires a health needs assessment. For example, in Ontario, seniors must demonstrate they need 24-hour nursing or personal care.
- Even in subsidized homes, you’ll have to pay extra for a private room, additional amenities, newer beds or upgraded meals.
For those retireers looking for a top-tier experience, keep in mind that your savings will need to be significant in order to cover the ongoing costs.
How much will it cost 20 years from now?
One of the biggest challenges is predicting future costs. For instance, if the cost of a private room was $6,000 per month in 2025, and that cost was to grow by 6% each year, then 20 years from now that same resident would be paying just oer $25,750 per month — or over $309,000 per year. At this rate, a resident could easily spend $1 million on care — in the future.
Thankfully, care facility rates do not increase quite that dramatically. Still, to cover the cost of future price growth, many Canadian financial planners recommend building in an inflationary increase of 5% when building a long-term care savings plan.
How to financially prepare for long-term care in retirement
Here are a few strategies to consider:
- Liquidate assets: A Money Wise Institute poll found that 27% of Canadians adjust their estate plans due to rising healthcare costs. Selling a home often covers a large portion of care costs. CPP, OAS, and pension income can also offset expenses.
- Work with an elder law or estate-planning lawyer: They can help structure assets to ensure eligibility for provincial subsidies while preserving family wealth.
- Consider long-term care insurance: In Canada, long-term care policies can help cover either in-facility or in-home care, though premiums rise with age.
- Explore alternatives: In-home nurses, retirement residences, or smaller group homes can sometimes provide more affordable care and may improve quality of life compared to an institutional setting.
If you’re a 62-year-old and want to guarantee access to a high-quality, private long-term care facility in Canada, you may need to plan for seven-figure costs over a multi-year stay. Provincial subsidies may cover the basics, but savings will be critical for more comfortable options.
Preparing now means you’ll have options later on in life, whether your future includes a long-term care home, a retirement residence, or care at home.
Sources
1. SunLife: Cost of Care by Province
2. Ontario.ca: Paying for long term care
3. Alberta.ca: Continuing care – Resident accommodation charges
4. Seniorsite.org: Long Term Care Insurance Canada: Real Costs & Coverage Guide
5. Moneywise Institute: One-in-four Canadian parents adjust estate plans due to soaring healthcare costs (June 17, 2025)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.