How to Manage the Cost of Caring for Aging Parents and Relatives

Caring for aging parents or relatives often happens gradually. A little extra help here. A new expense there. Over time, those changes can add up – emotionally, logistically and financially.

Some costs are obvious, like home care or assisted living. Others are easier to miss: transportation, lost work hours, out-of-pocket medical expenses or the long-term impact on your own savings and retirement plans.

Understanding the cost of caring for elderly relatives can help you plan ahead. Because when you have a clearer picture of what care may cost, and what supports are available, you’ll be better positioned to make thoughtful decisions, set realistic expectations and support your loved ones without sacrificing your own financial wellbeing.

The average cost of elder care

The cost of caring for elderly parents or relatives can vary widely depending on where and how care is provided and the province you live in. It is worth bearing in mind that long-term care is publicly regulated across Canada but accommodation fees, wait times and additional expenses will differ depending on location and room type.

Sources:

Aging at Home vs Senior Living in Canada: Costs, Safety, and What Families Often Miss

Ontario’s New Long-Term Care Rates for 2025: What Families Need to Know – Elderado.ca

What is the Difference Between Memory Care and Dementia Care in Canada?

How aging affects finances over time

As people age, their financial needs often increase and change – driven by health, housing and care requirements that evolve over time. While some expenses happen gradually, others surface more suddenly. Understanding these changes can help you feel more prepared as you support aging loved ones.

• Change in health and care needs

  As people age, health and care needs tend to grow more complex. Many seniors live with multiple chronic conditions, and the likelihood of needing more frequent care, mobility supports or help with daily tasks generally increases with age. In Canada, seniors are among the highest-cost users of healthcare services, accounting for more than 40% of provincial and territorial health spending – a reflection of this trend toward greater needs over time.

• Living arrangements

  Housing arrangements have a big impact on costs. Staying at home with support can be less expensive at first, compared to moving into a care community, but costs can add up depending on the level of need and types of services required.

  Assisted living or supportive housing typically bundles accommodation with care services, which, while it may feel less flexible, can simplify budgeting.

• Increased levels of care

  Occasional help with errands or housekeeping is very different from daily assistance with personal care or around-the-clock supervision.

  Some people move through different stages – from independent living to assisted living to more intensive long-term care – and each step has its own set of costs.

Aging is a process. Mapping out potential timelines and expenses can give you a sense of control and confidence, making future decisions feel less reactive.

The cost of aging at home with support

For those planning to age at home, costs will depend on factors such as the accessibility of the home, the amount of support available from the family and whether outside help – such as paid home care or personal support – is needed.

Most Canadian seniors want to stay in the familiar comfort of home as they age. According to a recent survey, nearly all Canadians 45 and older (96%) say that aging at home preserves independence and dignity, and most want to age in place as long as possible.

But it’s also true that aging in place involves a mix of costs – some are obvious, others easier to overlook. When you help a loved one remain at home, these are the kinds of expenses that often come into play.

Everyday living expenses

Even before formal care is introduced, day-to-day living costs often increase as someone ages. These expenses can feel small on their own, but together can make up a meaningful part of a caregiving budget. Common expenses include:

• Transportation: Costs related to medical appointments, errands or social activities, whether through ride-share services, community transportation programs or coordinated through friends and family.

• Meals and nutrition: Grocery delivery, prepared meal services or meal programs offer convenience but also increase monthly food costs.

• Housekeeping and home maintenance: Cleaning, laundry, snow removal, lawn care and minor home repairs often require outside help as they become harder to manage independently.

• Personal errands and support services: Paid help for shopping, prescription pickup or light assistance around the home can reduce strain on family caregivers, but come with costs.

Paid home care and personal support workers

Many families eventually choose to bring in help to ensure safety and wellbeing at home.

• Personal Support Workers (PSWs), who help with bathing, dressing, meal prep and light housekeeping, commonly cost around $28 – $45 per hour, depending on location and level of need.

• Nurses or more medical-oriented care can run higher – often $50-$80+ per hour, especially for more specialized nursing tasks.

• Some families combine government-funded home care hours with paid services to fill gaps and customize support.

Medications and therapries

Basic provincial health plans don’t cover all medications, therapies or specialty supports. Even when some drugs are covered, supplements or therapeutic devices may not be.

Medical and mobility equipment

Equipment that supports daily living – canes, walkers, wheelchairs and visual and hearing aids – can be essential. Depending on insurance coverage, some of these items may need to be paid for out of pocket.

Home modifications for safety and accessibility

Adapting a home to make it safer and more accessible can transform an older relative’s quality of life. But upgrades like walk-in showers, ramps, widened doorways or stair lifts all have costs. Even relatively modest changes can run into the thousands of dollars, and larger modifications cost more.

The cost of senior living and care homes in Canada

The cost of long-term care in Canada varies widely depending on the type of residence, the level of care provided and the location of the facility.

For some adults, aging at home remains the right choice for many years. For others, moving into a retirement residence or care home is a positive, intentional decision – one that offers social connection, convenience and a sense of security.

Retirement homes (independent living)

Designed for seniors who are largely independent, retirement homes focus on convenience and lifestyle.

What’s typically included:

• Private apartment or suite

• One to three meals per day

• Housekeeping and maintenance

• Social and recreational programming

• Security and emergency response

What’s usually extra:

• Laundry

• Transportation

• Internet, cable, phone

• Any personal care or medical services

Typical cost of retirement homes:

Monthly rents generally range from roughly $1,600 to over $6,000 per month, depending on province, unit type and services included. Larger urban centres and newer facilities tend to be at the higher end of the range.

Assisted living/supportive living

Assisted or supportive living is intended for seniors who are mostly independent but need some daily help.

What’s typically included:

• Help with activities of daily living (i.e., bathing, dressing, medication reminders)

• 24/7 on-site staff

• Meals and housekeeping

• Private or semi-private suites

• Social programming

What’s usually extra:

• Specialized nursing services

• Higher care levels – i.e., medication management, mobility aids

• Cable, internet, phone

• Premium suites

Typical cost of assisted living:

Costs are higher than independent retirement living because care services are built in. Across Canada, assisted living commonly ranges from $3,000 to $7,000+ per month, depending on care needs, staffing levels and location.

Long-term care homes

Long-term care (LTC) homes support seniors with significant medical needs, advanced mobility challenges or cognitive impairment such as dementia. This level of care provides continuous supervision and clinical support.

What’s typically included:

• 24/7 nursing and personal support worker care

• Medical oversight

• Assistance with most or all daily activities

• Secure dementia-care units where needed

What’s usually extra:

• Medication

• Equipment

• Supplementary PSW care

Typical cost of long-term care homes:

Long-term care is healthcare, not housing. It’s publicly regulated and partially funded by the government, with the remainder (co-payment fee) paid for by the resident.

Examples of monthly long-term care costs by province:

These figures reflect basic long-term accommodation. Private options cost more.

Out-of-pocket costs to pay for

Regardless of the care setting, some expenses are typically paid out of pocket, including:

• Personal toiletries

• Clothing

• Specialized equipment or supplies

• Optional services or enhanced care

• Transportation and incidentals

These costs vary widely, but budgeting for them helps avoid surprises and makes transitions smoother.

The hidden and indirect costs of caregiving

Beyond direct expenses, the financial impact of caregiving often extends to a caregiver’s income, retirement savings and other long-term financial goals.

How caregiving affects income and career plans

Many caregivers find themselves juggling work and care responsibilities. In fact, one recent Canadian study found that roughly one in three caregivers had to alter their work situation because of caregiving responsibilities.  This can look like:

• Reduced hours at work

• Unpaid leave to attend appointments and manage health needs

• Limited opportunities for overtime, promotions or travel

• Taking longer to build seniority or wage increases

Impact on savings, debt and retirement plans

Caregiving can affect your long-term financial picture, even if you’re not covering large expenses today.

Some common patterns include:

• Withdrawing from RRSPs or TFSAs early to cover care costs

• Using credit to make up shortfalls, especially in months when expenses spike

• Delaying your own retirement savings

• Affecting future Canada Pension Plan (CPP) contributions if work hours are reduced

These indirect effects don’t always feel immediate, but over time, they can influence how much you can support your future goals.

Emotional and physical investment

Caregiving also requires time, energy and focus to manage appointments, medications, insurance and health systems. Planning for self-care and support can maintain your ability to provide care over the longer term.

Financial supports available for caregivers in Canada

Canada offers a range of financial supports for caregivers that can help with both day-to-day expenses and long-term planning.

Knowing what’s available can help you decide what kind of support might make sense for you.

Federal tax credits and benefits programs

In Canada, adult caregivers may be eligible for several federal tax credits and claims, including: 

• The Canada Caregiver Credit (CCC): A non-refundable tax credit that applies if you support a spouse, common-law partner or dependant over 18 with a physical or mental impairment.

• The Disability Tax Credit (DTC): A non-refundable tax credit to help people with disabilities reduce their tax payments, and it can be claimed by a supporting family member.  

• The Home Accessibility Tax Credit (HATC): Helps cover expenses to improve home accessibility. 

• The Medical Expense Tax Credit (METC): Allows you to claim eligible medical expenses for qualifying dependents, including parents.

• Caregiver Recognition Benefit: Allows disabled veterans to access unpaid in-home care. 

• The Canadian Dental Care Plan includes dental benefits for seniors. To qualify, the individual must be without a dental insurance plan and have a net family income of under $90,000. 

Employment insurance and workplace supports

Another way to offset the financial burden of unpaid caregiving is through caregiver insurance benefits. Canada has two national Employment Insurance (EI) benefits that apply to caregivers who are in the workforce: 

• The EI Compassionate Care Benefit (CCB): Available to people who need to take time off work to care for a seriously ill family member at risk of dying within six months.

• The EI Family Caregiver Benefit (for Adults): Available to those caring for a critically ill or injured person for up to 15 weeks. 

Employers can be another source of support through insurance or employee assistance programs (EAP), so be sure to discuss your options with your HR representative.

Provincial, community and non-profit supports

Provincial and territorial programs cover assistive devices, drug benefits and more. Your province may also offer some publicly funded home care.

Further, many local community organizations provide financial support or cost-effective assistance. Provincial health websites and local seniors’ organizations often maintain up-to-date lists of programs and services.

How to cope financially and emotionally as a caregiver

Caring for an aging parent or relative isn’t just a financial exercise; it’s also an emotional one. Coping is easier when you have sufficient structure, flexibility and support. Here are some ways to build this into your care.

Set realistic financial expectations and boundaries

It’s natural to want to do everything you can for someone you love. But caregiving is rarely a short-term commitment, and overextending yourself financially can create stress that helps no one in the long run.

Here’s what setting boundaries can look like:

• Deciding how much financial support you can provide without jeopardizing your own stability

• Being clear about which costs you can share with siblings or other family members

• Recognizing when paid support is necessary

Knowing when to ask for help

Caregiving is often thought of as something families should handle privately. In reality, it works best when support is shared.

Asking for help can take shape in a few different ways:

• Bringing in professional care, even for a few hours a week

• Leaning on community or government programs

• Having honest conversations with siblings or extended family

• Seeking financial or emotional guidance from professionals

Planning ahead for elder care costs

While it’s impossible to predict all the costs of elder care, planning ahead can get everyone on the same page, so you’re not making decisions during moments of crisis.

Talking to aging parents about money and care

These conversations can feel awkward, emotional or easy to postpone. But earlier, lower-stakes discussions are often the most productive – especially when everyone still has time, choice and flexibility.

Rather than focusing on specific numbers right away, it can help to start with values and preferences:

• Where do they hope to live as they age?

• What does independence mean to them?

• What kind of help would they be open to – and what would feel like too much?

• Who do they expect to be involved in decisions if their needs change?

Estimating short- and long-term care costs

Once preferences are clear, you can begin to sketch out potential financial scenarios. This might include:

• Estimating what aging at home with part-time or full-time support could cost

• Understanding the typical price ranges for retirement living, assisted living or long-term care in your region

• Identifying which costs might be covered and which are likely to be out of pocket

Even rough estimates can make future choices feel less daunting.

Understanding roles, responsibilities and boundaries

Like with any financial planning, clarity is an important goal when planning for care. It’s worth thinking through the following questions:

• Who will coordinate care and finances day to day?

• How might costs be shared among family members?

• What level of financial support are you realistically able to provide?

• Where do you need to draw boundaries to protect your own stability?

Getting professional financial advice

At some point, many caregivers find it helpful to talk with a professional. A financial planner or advisor can help you:

• Model different care scenarios

• Understand tax credits, benefits and timing considerations

• Weigh trade-offs between supporting care now and protecting long-term goals

• Avoid reactive decisions during stressful moments

Even a single planning session can provide reassurance and direction, and help you focus on what’s within your control.

FAQs

How much does taking care of elderly parents cost in Canada?

There’s no single answer, as costs depend on health needs, living arrangements and location. Some families spend relatively little by coordinating informal care and publicly funding services, while others face higher costs when paid home care, assisted living or long-term care becomes necessary.

Is long-term care free in Canada?

No. While long-term care (often called nursing homes) is part of the healthcare system and is publicly regulated, it is not fully free.

The government covers medical and nursing care, but residents pay a monthly accommodation fee, which varies by province and by room type.

What elder care costs are covered by the government?

Coverage varies by province and situation, but government support may include:

• Publicly funded home care services

• Partial coverage for medications, depending on age and income

• Long-term care medical services

• Tax credits that help offset certain expenses

Can caregivers get paid in Canada?

In most cases, family caregivers are not paid directly for providing care. However, there are financial supports that can help, including:

• Tax credits that reduce taxes owing

• Employment insurance caregiver benefits provide temporary income replacement

• Some provincial or program-specific allowances in certain situations

When should families start planning for elder care costs?

Starting the conversation before care is urgently needed makes for calmer and more collaborative discussions. Even basic planning can make future decisions feel more manageable and less reactive.

Is caring for elderly parents tax-deductible in Canada?

Caregiving costs aren’t fully tax-deductible; however, caregivers may qualify for tax credits and benefits that can help reduce the amount of tax payable by the caregiver. Eligibility depends on factors such as the relative’s health status, dependency and the type of expenses incurred.

If you’re asking questions, you’re already preparing with care and intention.  And sometimes, that preparation is the most supportive thing you can do.