Canada is a comparatively near-perfect country with a great panorama and healthcare. It is one place that holds a plethora of satisfaction for retirees. It would be best if you thought of retiring in Canada.
Every good retirement plan seeks a more peaceful and comfortable life for the retiree. The target is always to retire to a place where you can live peacefully and memorably.
You probably have not considered retiring in Canada because you may not know the peaceful and prosperous life Canada affords retirees.
That’s okay. I’m here now to show you why you should retire in Canada. Let me show you why you should consider a peaceful and satisfying retirement life in Canada.
Before I tell you why you should retire in Canada, let’s answer some critical questions.
Table of contents
Is Canada a good place to retire?
If you want a quiet retirement life, retiring to Canada is an excellent choice.
Three basic life facts that distinguish Canada as a better option and an excellent place to retire are; affordable housing, low crime rates, and proximity to the U.S. border.
I will analyze these basics, among others, shortly.
What is the average retirement income in Canada?
If you retire at 65 in Canada, you can anticipate an average monthly pay of $679.16 from the Canada Pension Plan (CPP).
However, this depends on how long you contributed to the CPP during your active working years.
Guaranteed Income Supplements (GIS) are linked to the OAS (Old Age Security) pension and paid to persons with lower income rates. This is further dependent on your annual income and marital status.
Kindly note that the length of your residency in Canada establishes your Old Age Security pension amount. You must have lived in Canada for a while after the age of 18 years.
OAS is considered taxable if your annual income is above the net world income threshold set for the year. It is further subject to a recovery tax.
Nevertheless, there are three additional benefits you may be entitled to:
- the Guaranteed Income Supplement
- the Allowance
- the Allowance for the Survivor
Your age, marital status, and income level determine the amounts you pay for these benefits. They are not taxable income too.
Now let’s see why you should consider retiring in Canada.
10 Reasons to quit in Canada this year
The most important reasons why you should stop in Canada are;
1. Universal Healthcare
One of the biggest issues retirees in the U.S. face contemporarily is the high cost of healthcare services available for residents. It’s no secret that the U.S. has the most expensive healthcare in the world.
Medical bills are the primary cause of bankruptcies in the U.S., according to the price-comparison website NerdWallet Health.1 Unpaid medical bills lead to more bankruptcies in the U.S. than debt from student loans, credit cards, or mortgages.
And more than two-thirds of American seniors who file for bankruptcy cite health problems as the reason.
While Canada’s healthcare system is far from perfect (long wait times for diagnostic tests is one of the main complaints up north), the taxpayer-funded system places far less of a financial burden on individuals.
Americans who immigrate to Canada can use the country’s universal healthcare system once they apply for and receive permanent resident status.
That means that as an American, you don’t have to become a Canadian citizen to access Canada’s healthcare benefits.
2 Cultural Similarities
Culture shock is one of the most significant issues when retiring in a foreign country. Taking your nest egg and fleeing to an exotic and more affordable place, such as Thailand or Brazil, comes with its share of headaches.
From foreign language barriers and cultural differences to lax banking systems and substandard technology infrastructure, adjustment can be challenging for those used to living in the United States.
Even in advanced countries such as England, where people speak the same language, Americans have to contend with the fact that motorists drive on the other side of the road.
Not so in Canada. An estimated 75% of Canadians live within 100 miles of the U.S. border.
This proximity means that most Canadians watch American television shows, may even cheer for American sports teams, and follow American politics.
They also eat at American restaurants, such as McDonald’s and Applebees, and shop at American chain stores—from Wal-Mart to Costco.
Outside of the province of Quebec (and a few other areas), where French is the dominant language, everyone speaks English.
Culturally speaking, Canadians are similar enough to their American neighbors that living there will be a good fit for most people,, even if you must get comfortable with the metric system.
3. Cheaper Prescription Drugs
Another issue bedeviling American seniors is the high cost of prescription drugs. A 2015 study by Bloomberg News found that Americans paid more for prescription drugs to treat everything from high cholesterol and asthma to diabetes and cancer than any other country.
The International Federation of Health Plans came up with similar findings in its 2017 Comparative Price Report, as a source explains.
There are many reasons why we in the U.S. pay so much for prescription medicine. However, in each of its provinces and territories, Canada has established pharmacare programs designed to ensure prescription medication remains affordable and accessible.
In Ontario, Canada’s most populous province, people age 65 and over qualify for the Ontario Drug Benefit Program. Under its auspices, seniors pay the first $100 of their prescription medication yearly (a deductible).
After that, they pay no more than $2 to fill a prescription (a co-payment).
Seniors considered “low income” typically have the costs of prescription drugs waived entirely. As with universal healthcare, permanent residents of Canada are eligible to participate in Canada’s pharmacare programs.
4. Affordable Housing
Major urban centers in Canada, such as Vancouver and Toronto, have high housing prices, just like big U.S. cities like Chicago and New York City. But real estate is relatively affordable throughout the rest of the country.
Some of the most picturesque parts of Canada, such as Prince Edward Island and Vancouver Island, have among the most affordable housing costs in the country.
For example, Oceanfront homes in Prince Edward Island can be purchased for Cdn $150,000 and Cdn $300,000. That equates to U.S. $109,000 and $218,000 at the current exchange rate.
And while the Canadian and U.S. dollar exchange rates fluctuate, it is worth noting that the rate has historically favored the American currency.
Also, the process of purchasing property in Canada is relatively straightforward and has a stable banking system.
5. Close Proximity to the U.S.
As previously mentioned, three-quarters of Canada’s population resides within 100 miles of the U.S. border. Look at a map of Canada, and you’ll see that the most important centers hug the U.S. border.
Residents of cities from Vancouver on the West coast to Ottawa (the capital) can drive to the U.S. border in an hour or less. On the East coast, ferry boats take people from Nova Scotia to Maine, and it’s only a three-and-a-half-hour ride.
This proximity helps to explain why many Canadians hop over the border to go shopping or fill their cars up with gas (depending on the fluctuating exchange rate, of course).
The proximity means that U.S. retirees who choose to settle in Canada can visit their loved ones quickly, often without having to endure a long flight or pay high airfare.
In an emergency, people can speedily cross the world’s longest undefended border to reach their family members.
6. Cost of living
It isn’t easy to generalize because, as in every big country, you’ll experience differences in the cost of living – especially rent and property – depending on where you settle.
But it’s fair to say that outside the city center districts of Toronto and Vancouver, for example, housing is relatively more affordable, and Canada is generally cheaper than most European cities.
However, the prices of a surprising number of things – alcohol, groceries, cellphone plans, and internet access – can seem surprisingly steep.
7. Canada Pension Plan (CPP)
The Canada Pension Plan is one of three levels of Canada’s retirement income system responsible for paying retirement or disability benefits.
8. Canada’s pharmacare programs
Permanent residents of Canada are eligible to participate in Canada’s pharmacare programs, designed to ensure prescription medication remains affordable and accessible.
9. Real estate
Real estate is reasonable and affordable throughout the country except for major urban centers.
10. Friendly communities.
Being accepted by the locals is one thing you’re unlikely to have to worry about much when retiring to Canada. Hospitable by nature, Canadians are as likely to invite you into their home as tell you their name.
The story of how the residents of the small town of Gander, Newfoundland,, and Labrador, housed and fed 7,000 air passengers who were stranded there when all planes were forced to land outside the US on 9/11 is so inspiring it became a hit Broadway musical – Come From Away – soon to open in London’s West End.
Conclusion
Are you still thinking about whether to retire in Canada?! I know you’re not. Because I could almost feel the excitement from your end.
I agree that you deserve all that pampering Canada promises you as a retiree.
References
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