Why Canada’s caregivers say their retirement plans are being ‘decimated’

Many Canadians who are caregivers for loved ones over the age of 65 are feeling the financial strain of their roles, according to a new report by financial firm Edward Jones. Tracy Slaney, a caregiver for her father who had terminal cancer and then her mother who had dementia, said her retirement plans were "decimated" after years of caring for her family.

In Canada, over seven in 10 caregivers are also financial caregivers, spending thousands of dollars out of pocket on care. Many of these caregivers are reducing or stopping their savings, tapping into non-retirement savings, reducing retirement contributions, or even borrowing from their retirement accounts. More than 83% of surveyed caregivers said they have experienced at least one impact on their lifestyle, such as moving or changing their own expenses.

Nearly half of these caregivers reported that their own health was negatively affected due to the financial burden. The report also found that one in five caregivers is already over the age of 65, a time when many Canadians should be saving aggressively. The increasing number of caregivers in this age group is putting them at risk of needing care themselves.

The "sandwich generation" of caregivers is turning into a "club sandwich," with many caregivers caring for both younger and older family members. This dual caregiving role can lead to significant financial and health impacts, making it crucial for caregivers to address the taboo subject of financial planning in caregiving situations.