Getting sick ails finances, too

Seriously sick Canadians have more than health issues to contend with—for 40% their illnesses cause financial difficulties too, says the Sun Life Canadian Health Index.

“The short-term financial impacts are overwhelming and immediate, but there can also be longer-term negative implications on retirement plans,” said Kevin Dougherty, President, Sun Life Financial Canada.

Read: Health concerns trump finances for boomers: RBC

After dealing with a major health issue, 53% of 45- to 54-year-olds are struggling to make ends meet.

Of those impacted by a personal health crisis:

• 22% turned to credit cards or personal lines of credit;
• 22% tapped into personal savings;
• 12% borrowed from a loved one; and
• 5% were forced to either remortgage or sell their home.

Read: Strong performance for health care sector

Most Canadians (82%) realize a serious health problem like a stroke or a heart attack could impact their personal finances, but just 13% have money set aside for uncovered healthcare costs.

And a fifth of Canadians have no group insurance, personal insurance or health expense savings.

Seventy-seven per cent of Canadians report they are excessively stressed, a five percentage point increase over the previous year. Finances are the most likely cause of excessive stress across all age brackets. Though 45- to 54-year-olds face the most financial pressure, 20- and 30-year-olds bear the larger stress burden, at 84%.

Read: Healthcare system must be reformed, says report

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.