Retiring in Canada Is a Great Way to Spend Your Golden Years — Here’s How You Can Do It
If you’re nearing retirement age and eager to move abroad, you might be thinking about retiring in Canada. This friendly country offers natural beauty, safety, a strong economy, and an excellent quality of life for retired immigrants.
Here, we offer guidance on how foreigners can prepare to retire in the Great White North. This includes advice on visas, health insurance, and more.
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Retiring in Canada Pros and Cons
There are several reasons why retirees choose to immigrate to Canada. In addition to its breathtaking geography, it offers a:
- Low rate of crime
- Stable economy
- Polite culture
- Diverse population
- Universal healthcare
Is Retiring in Canada a Good Idea?
Many expats and immigrants consider Canada to be one of the best countries to live in, let alone retire. Below is an overview of the benefits of retiring in Canada.
Geography
Few countries can match the natural beauty of the Canadian landscape. It offers everything from beaches and Great Lakes to grassy plains and snow-capped mountains. That means Canada has something to offer every retiree, whether they prefer small town living, skiing and hiking, or the hustle and bustle of a big city.
Low Rate of Crime
Canada is among the 15 safest countries in the world according to the 2024 World Population Review. It is significantly safer than the United States, which does not rank in the top 100 countries for safety.
Stable Economy
As of 2023 data from the World Economic Outlook Database, Canada has one of the ten largest economies in the world. Not only is it a major global trading power, but it also has one of the top incomes per capita in the Western world.
Polite Culture
Canadians have a reputation for being polite. They are often as polite and friendly to strangers as would be to family and friends. Overall, the people of Canada value good manners but take a pleasant and laid-back approach to life.
Diverse Population
In recent years, Canada has seen a rise in immigration. Its population as of 2024 is 39 million, and is expected to reach 50 million by 2070 – with immigrants accounting for much of that growth.
Universal Healthcare
Canada has a taxpayer-funded universal healthcare system that covers many basic medical expenses. Both Canadian citizens and immigrants who are permanent residents of Canada can use their healthcare system. More details about Canada’s healthcare system can be found below in the “Do Expats Get Free Healthcare in Canada?” section of this article.
What Are the Cons of Retiring in Canada?
Although Canada is a great place to retire, no country is perfect.
Overall, there are few downsides to retiring in Canada, but it’s possible that the cost of living may be higher than what you’re used to in your home country. For example, even though Canada’s overall cost of living is lower than that of the United States, the price of housing in Canada is often higher.
You can get a better idea of the difference by comparing the cost of living in Canada, which is covered in the “Cost to Retire in Canada” section of this article, to the cost of living data from your home country.
Where to Retire in Canada
The lifestyle you want for your retirement years will have an understandable influence on the Canadian town or city in which you choose to live. Most retirees consider factors like safety, affordability, weather, access to nature, and access to healthcare and amenities.
The Best Places in Canada to Retire
Here’s a list of some of the best places to live in Canada for retired foreigners and expats.
1. Ottawa, Ontario
Ottawa is Canada’s capital city, with an affordable cost of living and good access to healthcare. In fact, the city has the sixth-highest number of medical offices in all Canada, as well as the world-renowned Ottawa Heart Institute.
You’ll also find a thriving art scene, great dining and entertainment, and many historic sites and landmarks. Retirees who love the outdoors will enjoy the city’s walkable and bikeable green spaces, which cover several acres and include public access to the Rideau Canal.
2. Oakville, Ontario
Oakville is known for its festivals, lively downtown district on the banks of Lake Ontario, and countless choices for fine dining, shopping, and entertainment.
This neighborly Canadian city attracts a mix of families, young professionals, and affluent retired expats. The median price of housing in Oakville is $1.4 million USD, which can be a downside for retirees on a budget. But the upside is that you’ll be within a short commute of Toronto’s world-famous nightlife and cultural scene, as well as top-tier health facilities and an international airport.
3. Charlottetown, Prince Edward Island
Historic Charlottetown, located on the island province of Prince Edward Island, is a hot spot for retirees. It has some of the lowest real estate prices in all of Canada, as well as charming Victorian architecture, delightful waterfront vistas, and a low crime rate.
You won’t need to drive far to find one of the island’s many tranquil beaches. Charlottetown is also known for its incredible restaurant scene and has been nicknamed “Canada’s Food Island.” It hosts several food festivals throughout the year.
4. Halifax, Nova Scotia
Halifax is one of the busiest and fastest-growing cities in Atlantic Canada. Home to the second-largest natural harbor in the country, it combines rural charm with the same fantastic options for retail and dining that you’ll find in other bustling cities.
Retirees love Halifax for its affordable housing and low cost of living compared to other major cities in Canada. The city’s mild weather and slower pace of life have helped it earn its place as one of Canada’s hidden gems.
Cost to Retire in Canada
Before you retire in Canada, you’ll need to do some financial planning to decide if your budget can cover the cost of living. Below is an overview of the average costs you can expect to pay to live in Canada as a foreign retiree.
Rent and Utilities
Canada is a large country. Depending on where you choose to settle, the cost of living in Canada will vary. Canada’s relative affordability will also depend on what you’re used to paying in your home country.
All cost of living data provided below comes from Numbeo. These figures, which are based on United States Dollars (USD), are up to date as of April 2024.
Some of Canada’s biggest cities have widely different costs of living. The city of Vancouver, located in the Canadian province of British Columbia, is much more expensive than Montreal, located in the province of Quebec. By comparing the two cities, you can get a better understanding of how much it might cost for you to retire in Canada.
In Vancouver, a one-bedroom apartment in the city center costs an average of $2,266 USD a month, while a one-bedroom apartment in Montreal’s city center costs $1,354 USD. Across all Canadian cities, the average monthly cost of a one-bedroom apartment ranges from $1,408 to $1,551 USD.
Basic utilities like electricity, heating, cooling, and water cost an average of $176 USD a month nationwide. Mobile phone plans average $55 USD a month, while internet packages cost an average of $72 USD a month.
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Groceries
Canada imports much of its produce and groceries. The cost of importing is reflected in the prices you’ll pay at the grocery store. Here’s a snapshot of the average cost of grocery staples across Canada:
- Milk: $2.42 USD a liter
- Eggs: $3.85 USD a dozen
- Bread: $2.97 USD a loaf
- Rice: $4.18 USD a kilogram
- Chicken breasts: $13.53 USD a kilogram
- Apples: $4.73 USD a kilogram
- Bottled water: $1.98 USD a liter
Compare these prices with what you’re currently paying in your home country to get an idea of how much more – or less – you’ll spend on groceries if you retire in Canada.
What are the Requirements to Retire in Canada as a Foreigner?
When making your retirement plan, don’t forget to consider income tax requirements. Different countries have different tax laws. What you’ll owe in taxes as a resident of Canada will depend on not only the country’s domestic tax laws, but also the tax treaty between Canada and your home country.
Once you become a Canadian resident, you must pay Federal and Provincial (Territorial) taxes. These are both paid to the Canada Revenue Agency, which then sends your territorial tax return to the correct province.
Here’s an overview of what you can expect when filing taxes as an immigrant or foreign retiree in Canada.
Federal and Territorial Income Tax
If you’re American or moving to Canada from the United States, you may find that the tax rates in Canada are similar to the tax rates paid by U.S. citizens and legal residents.
Here’s a rundown of what you can expect.
- The federal tax rates as of the 2023 tax year ranged from 15% for taxable income below $40,000 USD to 33% on incomes above $170,000 USD. These rates are comparable to U.S. tax brackets.
- Provincial taxes vary by province or territory, ranging from 4% in less-populated areas like Nunavut to 25.75% for Quebec’s high-income (above $80,000 USD) earners.
- Non-residents must pay a surtax of 48% of their federal tax to compensate for the lack of a provincial tax.
- As a resident of Canada, you’ll pay into the CPP or Canadian Pension Plan (or Quebec Pension Plan, if applicable) through paycheck withholding. Again, this is similar to the U.S. version of Social Security Retirement.
- You’ll also pay Canadian Employment Insurance, which is taxed at 1.63% as of the 2023 tax year and has an earnings cap of $45,000 USD.
If you decide to take a part-time job after you retire in Canada, you may see a tax for Old Age Security (OAS) deducted from your paycheck. This tax funds the Canada pension plan, which is similar to America’s Social Security benefits and is paid out to residents aged 65 and older.
Taxable Assets
Part of your retirement income might include assets like real estate, bank account savings, or Roth IRA funds. How these are taxed will depend on several factors, including your home country’s tax treaty with Canada, as well as interest rates, liabilities and withdrawals.
Newcomers to Canada may qualify for benefits and credits that impact their retirement savings and tax payments. Contact an international financial advisor or tax accountant for more detailed information about how to best manage your retirement accounts.
Can a US Citizen Retire in Canada?
If you’re a U.S. citizen planning to move to Canada for your retirement, you should know that the country does not offer a retirement visa.
However, there are several other visa options for which you can apply. Below is a list of Canadian visas that are the most likely to be relevant for foreign retirees. Some of these visas may be better for retired immigrants and expats who still want to work or maintain a part-time job, while others are not tied to employment.
- Family Sponsorship Visas allow your family member in Canada to sponsor you. You may still need to meet certain financial requirements to prove you won’t be an economic burden.
- Express Entry System Visas for skilled workers. Seniors can still apply if they meet the criteria for eligibility.
- Provincial Nominee Visas are meant to attract retirees and seniors to specific provinces of Canada. The Manitoba Provincial Nominee Program (MPNP) visa is one example.
- Quebec Investor Visas are for people who have a high net worth. This type of visa is ideal for retirees who have the financial means to invest in the province of Quebec.
- Self-Employed Visas are for immigrants who have experience in cultural or athletic activities. They must also be self-employed and plan to contribute to the local Canadian economy.
- Entrepreneur and Start-Up Visas can benefit seniors with innovative business ideas who plan to start a business in Canada.
Many of the above visas can be used as a pathway to a Canadian permanent residency card. Even if your plans to retire in Canada don’t include becoming a citizen of the country, you’ll want to consider applying for permanent residency. Permanent residency status makes it possible for you to legally reside in Canada for a long or indefinite period of time.
Can I Still Collect Social Security if I Move to Canada?
As long as they’re eligible for social security, U.S. citizens who are retired or living in Canada can collect their social security benefits abroad.
U.S. citizens will receive their social security payments as a direct deposit, rather than a check. You can set up the direct deposit at any U.S. bank, Canadian bank, or bank located in another country that has a direct deposit agreement with the U.S.
The U.S. Social Security Administration sends a questionnaire to U.S. citizens abroad every one to two years. You must respond to the questionnaire – which determines if you’re still eligible for benefits – in order to be considered for future social security payments.
Note that if you were living or working in Canada prior to your retirement, you may be eligible to receive the same social security benefits as Canadian citizens. Receiving social security benefits from Canada or any other foreign country may impact your eligibility for U.S. social security. It can also impact how much you’re able to collect in benefits. Consult an accountant who specializes in international taxes to learn more.
Will My US Social Security Be Taxed in Canada?
Yes, Canada does tax U.S. social security benefits and other forms of retirement income. Canada also has a tax treaty in place with the U.S. to avoid double taxation.
The amount you’ll be expected to pay the Canadian tax authority will depend on your income level and other specific factors.
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Do Expats Get Free Healthcare in Canada?
Canada is known for its universal healthcare system. Only Canadian citizens, permanent residents, refugees, and qualifying international students and workers can enroll in the publicly funded program.
Foreigners and immigrants who are pending approval of their visa or permanent residency card can receive coverage under the program for emergency care only. That’s one of the reasons why many immigrants in Canada opt to buy a private international health insurance plan to cover their medical expenses.
Xplorer Worldwide Medical Plan
- Premium Benefits, Coverage and Service
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- For Foreigners in the US or US Citizens Abroad
Public vs. Private Health Insurance in Canada
Public healthcare in Canada is high quality, but is subject to long wait times. It can take several weeks or months to get a referral to see a specialist, undergo imaging or diagnostic testing, or schedule a surgery for a non-life-threatening condition. Also, Canada’s public insurance plan does not cover dental, vision, prescription medications, or ambulance services – but a private insurance plan can.
If you’re a foreign retiree in Canada, buying private health insurance in Canada can give you more control over the doctors you see, as well as shorter wait times, faster referrals, and coverage for treatments that the public system does not cover.
IMG Global Medical Plan
- Four plan options and plus optional coverages
- Choice of the coverage areas and deductibles
- Freedom to choose your health care provider
Does Canada Accept Medicare?
Given that Canada and the U.S. share the border, it’s natural for retired U.S. citizens to wonder if their Medicare coverage will pay for treatment in Canada.
In general, the American Medicare system does not cover the cost of medical treatment in Canada or outside the U.S. It’s best to consult the terms of your Medicare plan to confirm if it will cover treatment in Canada.
Retirees who are enrolled in Medicare can still purchase a private international healthcare plan to supplement Medicare while living abroad.
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