Canadian seniors are leaving themselves vulnerable to potential incapacity and other related health issues by not creating a living will, suggests a new poll.

According to the third annual RBC Myths and Realities poll, while most retired baby boomers (81%) have a current will, only half (49%) have a current health directive and even fewer (39%) have a current financial directive.

But with average lifespans increasing, Canadians will likely need health directives and a general power of attorney (POA) or other financial directives before a will is invoked, RBC says.

Advisors can address this need by talking with clients about the importance of health and financial directives, also known as living wills.

A health directive refers to a written document that is used to express a person’s health care wishes if the individual is no longer able to communicate them. It and also appoints someone to make personal care decisions if the individual cannot.

Similarly, a general POA or other financial directive refers to a written document that grants one or more persons the responsibility of managing another person’s financial affairs. It is also important to consider what happens if the appointed decision maker passes away or becomes incapacitated.

“Financial planning is not complete without planning for potential unforeseen health issues or incapacity,” says Suzanne Michaud, senior advisory counsel, RBC Law Group. “Your plan should address your wishes relating to personal care and include the right documents in place to appoint someone to act upon your behalf for both property and personal care matters.”

Retired boomers indicate that the top challenges in retirement will be changes to health, either their own (74%) or their spouse’s (50%). One-in-three (33%) retired boomers has experienced a significant health event or decline in their family’s health in the past year and 41% think they’ll have to provide care giving to another adult at some point.

Michaud notes that Canadians recognize the reality of aging and health concerns but they are not taking action while they are young enough to address this reality without undue pressure or failing health.

The third Annual RBC Retirement Myths & Realities Poll, which examines Canadians’ expectations and experiences in retirement, was conducted by Ipsos Reid from February 24 to March 12. For this survey, a national sample of 2,833 adults aged 50 and over with household assets of at least $100,000 from Ipsos’ Canadian online panel was interviewed online.