Ontario retirement planning

Retiree Handbook

A practical, readable guide for retirement decisions in Ontario.

Chapter 7 of 13

Health, care, and aging at home

Plan for aging at home, retirement homes, long-term care, health costs, and insurance decisions.

Version 6.3Updated July 15, 2026

7.1 Care settings and stress testing

Care option What it means Planning issue

                                      Family support, paid help,           Accessibility, transportation,
 Aging at home                        community services, home             caregiver capacity, snow
                                      care, or modifications.              removal, and home
                                                                           suitability.
                                      Private-pay housing with             Contracts, fee increases,
 Retirement home                      meals, housekeeping, and             care levels, and exit terms.
                                      varying assistance.
                                      Residential nursing/personal         Accommodation charges,
 Long-term care home                  care through Ontario                 wait lists, location, and rate-placement.                           reduction rules.

Care option What it means Planning issue

                                        Short-term care after illness           Fast discharge decisions;
 Hospital/rehab transition              or injury.                              keep POAs and contact
                                                                                plans ready.
                                        Unpaid or partly paid care by           Burnout, respite, fairness,
 Family caregiving                      family/friends.                         work impact, and caregiver
                                                                                tax credits.

GIS involuntary-separation election. When spouses or common-law partners must live apart for reasons beyond their control — most commonly when one enters a long-term-care home or hospital — the couple can ask Service Canada to be treated as two single individuals for GIS and Allowance purposes. Because the single-rate maximums and income tests are more generous than the couple rates, this election often increases combined benefits by thousands of dollars per year, precisely when care costs rise. Ontario GAINS follows the federal determination. This is not automatic: notify Service Canada of the separation and ask about the involuntary-separation provision. Also coordinate with the LTC rate reduction application for the basic room (§13.2.12), which is based on income. Official source: https://www.canada.ca/en/services/benefits/publicpensions/old-age-security/guaranteed-income-supplement.html

7.2 Choosing a retirement home

Ontario retirement homes are private-pay rental housing with optional care services. They differ from long-term-care homes, where admission is coordinated through Ontario Health atHome and government funding covers nursing and personal care.

Before signing:

  • Confirm the home is licensed and review its RHRA inspection record.
  • Obtain the written agreement showing rent, meals, care charges, optional services, and increase rules.
  • Ask about staffing, emergency response, medication support, and increasing care needs.
  • Review termination, transfer, and discharge provisions.
  • Confirm resident rights and the complaint process.
  • Estimate the total cost if care needs increase, not only the introductory rent.

Official source: Government of Ontario - Find a retirement home

7.3 Aging-at-home tax credits and Ontario supports

Program Planning use

Federal non-refundable credit for qualifying Home Accessibility Tax Credit (HATC) renovations that improve access or reduce risk for an eligible person.

Federal refundable credit for qualifying creation of a self-contained secondary unit Multigenerational Home Renovation Tax for an eligible senior or adult eligible for the Credit (MHRTC) disability tax credit. See §7.6 — creating a secondary unit can affect the Principal Residence Exemption.

Federal non-refundable credit for eligible support of a spouse, partner, or dependant Canada Caregiver Credit (CCC) with an impairment; amounts and eligibility depend on relationship, income, and circumstances.

Helps pay for eligible devices such as Ontario Assistive Devices Program (ADP) mobility, hearing, respiratory, visual, and other equipment; coverage and client share vary by device and program rules.

                                                            Track receipts, travel, attendant care,
 Medical expense tax credit / disability                    devices, renovations, and certificates;
 supports                                                   determine who in the family should claim
                                                            eligible expenses.

7.4 Travel and out-of-country medical insurance

Travel policies can be invalidated by changes in symptoms, tests, treatment, or medication during the policy's stability period. Read the policy definition of stable, disclose accurately, retain medical records, understand exclusions, and call the insurer before travelling after any health change.

7.5 Insurance decisions in retirement

Insurance should solve a defined risk. Compare the cost of premiums with the financial harm if the event occurs, the availability of public coverage, and the household's ability to self-insure. Reassess life, health/dental, travel, critical-illness, and long-term-care coverage after retirement, mortgage payoff, widowhood, and major asset changes.

7.6 Principal Residence Exemption and change-in-use

  • CRA may treat you as having a deemed disposition of the affected portion at fair market value, potentially crystallizing a capital gain, and
  • the income-producing portion may no longer qualify for the PRE going forward, so a partial capital gain can arise on the eventual sale of the home.
  • A change in use may be avoided where the income use is ancillary/secondary to the main residential use, the home is not structurally altered for the income use, and no capital cost allowance (depreciation) is claimed — but these conditions are specific and fact-dependent.
  • In some cases a subsection 45(2)/45(3) election can defer the deemed disposition; eligibility and timing rules apply.
  • Keep records of the home's value before and after the renovation and of the area/percentage used for income.
  • Coordinate any secondary-suite plan (for a caregiver, adult child, or rental) with a tax professional before starting, so the household weighs the MHRTC benefit against a possible future PRE loss.

7.7 Navigating the Ontario health and home-care system

Knowing which door to knock on matters as much as knowing a program exists. These access points apply province-wide, though local service capacity and wait times vary by region.

Need Where to start (province- Planning notes wide)

                                        Ontario Health atHome (the
                                        provincial home-and-                  An assessment determines
 Publicly funded home care              community-care service;               eligibility and hours; public
 (nursing, personal support,            formerly the LHIN/CCAC                hours may not fully meet
 therapy)                               home-care function). Ask              needs, so budget for private
                                        your hospital, doctor, or call        top-up (see §7.1).
                                        the provincial service to
                                        request an assessment.
                                                                              You choose preferred
                                        Apply through Ontario                 homes; wait lists vary sharply
 Long-term care (LTC) home              Health atHome, which                  by home and region.
 placement                              coordinates LTC                       Accommodation charges
                                        applications, eligibility             apply, with a rate-reduction
                                        assessment, and the wait list.        option for the basic room
                                                                              based on income.
                                        Local community support               Availability and cost differ by
 Community supports (meals,             service agencies; many are            municipality; respite can
 transportation, adult day              found through the provincial          relieve caregiver burnout
 programs, respite)                     service or 211 Ontario (dial          (§7.1).
                                        2-1-1).
                                        Hospital care-                        Discharge decisions can
 Hospital discharge to home             coordination/discharge                move quickly; keep POAs
 or LTC                                 planning team.                        (§8.1) and a contact plan
                                                                              ready in advance.

Need Where to start (province- Planning notes wide)

  Health card / OHIP coverage           ServiceOntario for renewals;          Extended absences can
  while away                            confirm out-of-province/out-          affect coverage — relevant to
                                        of-country residency rules.           snowbirds (§9.5).
  • Start the assessment process early — before a crisis — because wait lists and paperwork take time.
  • Public home care rarely covers 24-hour needs; combine it with private care, family caregiving, and community supports.
  • Keep a written care plan and contact list with your POA-for-Personal-Care attorney (§8.1, §8.8).
  • Use 211 Ontario as a free, province-wide referral line for local seniors' and community services in any municipality.

Educational guide only. Rules and benefit amounts change. Confirm important decisions with official sources and qualified professionals.