With many baby boomers hoping to remain in their current homes during retirement, advisors need to have detailed conversations with clients about how they will fund their later years including potential healthcare costs.

Results from Toronto-based Royal Bank of Canada’s 2013 Retirement Myths and Reality Poll show 88% of Canadians who are already retired wish to stay in their current homes rather than live with family members or move into a retirement residence. The vast majority of baby boomers in the workforce (83%) also prefer the idea of continuing to live in their current homes in retirement with the intention of paying for home care as needed.

To make sure clients can live as they hope to in retirement, Amalia Costa, head, retirement strategies and successful aging, RBC in Toronto says advisors need to have a serious talk with clients about their preferred living arrangements in retirement about a year before their intended exit from the workforce.

Some points Costa suggests clients consider carefully before retirement include: How much do they need to put aside to cover healthcare costs? How do they want to handle a decline in their health? How long will they stay in their own home during retirement? Would they consider downsizing earlier in order to put equity towards a retirement income and future funding of a retirement residence or in-home care.

Of those people surveyed who are already retired, 66% said the decision to move out of their home was triggered by a health issue, while 57% moved because they needed less space. Only 36% of retired Canadians said they left their homes to free up equity.

When a client decides to move for health reasons adult children often get involved, says Costa, and the process is often a learning process for everyone. In such cases, advisors need to take a quarterback role in the process.

“The role advisors can play is one of guidance, providing resources and information,” says Costa, “especially when it comes to the financial considerations and the cost of the different options.”

Results for the poll came from 2,159 online interviews of Canadians aged 50 and older with household assets of at least $100,000. Ipsos Reid conducted the survey between February 27 and March 2013.