Canadians who have had a serious health event or diagnosis are feeling the pinch, with 40 percent reporting financial hardship as a result. More than half (53 percent) of 45 to 54 year olds are struggling to make ends meet after a major health incident, according to the fourth annual Sun Life Canadian Health Index, conducted by Ipsos Reid. A sample of 2,400 Canadians from 18 to 80 years of age was interviewed online.

The survey found that of those impacted by a personal health crisis:

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

“Coping with a personal health crisis is difficult enough without the addition of financial strain,” said Kevin Dougherty, president, Sun Life Financial Canada. “We have seen firsthand the devastating impact that serious health issues can have on an individual and their families. The short term financial impacts are overwhelming and immediate, but there can also be longer term negative implications on retirement plans. Having a financial plan can help to deal with the unexpected.”

While a majority of Canadians (82 percent) realize that a serious health event could impact their personal finances, few (13 percent) have money set aside for uncovered health care costs. These health events are dire and include heart attack, stroke, cancer, coronary bypass, chronic diseases, degenerative disorders, terminal illnesses and serious accidents. A fifth of Canadians (20 percent) have no group insurance, personal insurance, or health expense savings to help absorb the shock.

Juggling childcare and eldercare, managing mortgages, and retirement planning can leave Canadians overextended and ill-equipped for surprise expenses, especially health care costs not covered by government or employer plans.

“Canadians aged 45 to 54, commonly referred to as the sandwich generation, also have a unique set of priorities that include caring for their children and their parents while working and saving for their own retirement. This explains why they're more deeply affected by unplanned health care costs,” said Alison Griffiths, financial columnist and commentator. “With job instability and a tough economic climate, many are stretched too thin. A large portion of sandwichers are nearing retirement, but may be forced to delay these plans to recoup financial losses.”

Victoria Spears

Victoria Spears

Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].

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