17 Pros and Cons of Retiring in Canada (From a Local)

The pros and cons of retiring in Canada, eh?

I’m a lifelong Canadian blessed with eight – yes, eight! – retirees for grandparents. I’ve seen firsthand the joys and challenges of deciding where to spend your golden years. 

I even hear people from the US and Europe discuss settling down in Canada once their careers are over. 

Canada has a world-renowned healthcare system, breathtaking landscapes, four distinct seasons, and an unbeatable quality of life. 

However, it’s not all perfect. I’m all too familiar with the challenges of living in Canada, like the housing crisis and the high cost of living. Another concern for foreign retirees is that there are limited pathways for getting a long-term visa. 

So here’s my two loonies’ worth on retiring in Canada. 

I’m sharing the good, the bad, and everything in between, straight from a seasoned Canadian who knows her way around a snow shovel and a universal healthcare system.

1. Pro: Ranked as #2 Best Country in the World

The US News and World Reports recently ranked Canada as the #2 Best Country globally. 

Canada also ranks as the 13th happiest country worldwide, with a long life expectancy for its citizens – making it a charming and practical choice for retirement!

The country is renowned for welcoming immigrants with open arms, offering a high quality of life and low corruption rates. 

The job market is also super healthy, offering economic stability and excellent retirement benefits.

Another reason the quality of life is so high in Canada is that people are less worried about healthcare. Canada has a universal healthcare system that guarantees coverage into your twilight years.

2. Con: Limited Visa Pathways for Expat Retirees

But if you are a foreigner looking to retire in Canada, there is a significant drawback. It’s extremely hard to get a residency visa as an expat retiree.

Sure, it’s easy for people with family ties to Canada, whether through parents or grandparents, but this isn’t an option for everyone. 

When US citizens or other foreigners cannot get residency, they must limit their time in Canada to no more than 6 months each year (maximum length for tourist visa). 

This compromise means extra headaches, lack of community, and they can’t access Canada’s free healthcare.

3. Pro: Generous Retirement Benefits

The limited visa pathways present a challenge for US seniors seeking to relocate, but on the flip side, Canada’s generous retirement benefits offer an attractive reason for considering such a move.

The Old Age Security (OAS) pension offers monthly payments to those aged 65 and above, with the added convenience of automatic enrollment by Service Canada in most cases. My grandma seems pretty happy with her benefits!

Cities like Ottawa are taking substantial steps towards supporting their aging population, pledging significant investments into home-care programs over the next decade. 

These generous benefits, along with many others, make qualifying for permanent residency in Canada more than worthwhile – they promise a retirement that is not only comfortable but also dignified.

Bonus –  Americans who retire in Canada are still eligible for their US Social Security benefits!

4. Con: It’s Expensive as Heck!

Sure, the allure of generous retirement benefits makes Canada seem like the ultimate retirement destination, but remember that this northern paradise comes with a hefty price tag. 

The cost of living in Canada is notably higher than in many other countries where I’ve lived, particularly when you factor in senior housing. 

Retirees not requiring high-level care could expect to pay an average of $3,075 monthly for standard spaces. This figure fluctuates across the country but still represents a significant monthly expense. 

You won’t believe how much I spend on groceries and dog food!

The financial commitment associated with retiring in Canada remains substantial despite smaller towns offering some respite from these costs and several programs available to assist low-income seniors with housing expenses.

You should also consider that Canada has a high tax burden. I always say we’re famous for our taxes! 

The taxation situation could also become complicated for foreigners (like US citizens) who choose to retire here as they may be obligated to pay taxes in both countries – Yikes.

5. Pro: Canada is Safe

A major pro of retiring in Canada is its reputation as a safe place to live. 

The low crime rates in Canada give residents an impressive sense of security that they appreciate. You’ll feel safe whether you choose to settle down in a small town or a larger city.

I still walk my dog alone in the dark in Toronto and feel completely safe (and he is the least intimidating dog ever).

This tranquility isn’t just because of the absence of guns (one reason I’d never retire in the US) but also thanks to Canada’s strong social safety nets, law enforcement system, and citizens’ respect for the rules.

6. Con: Rising Housing Prices

The cost of living in big cities like my hometown, Toronto, feels like highway robbery. It’s a whopping $1 million for a small house. That’s supposed to be a good deal! Then, sky-high property taxes add salt to the wound. 

And don’t get me started on the rent – $2k for a one-bedroom flat in Toronto is pretty standard. 

Smaller cities, like Ottawa, offer similar apartments and homes at half the price and typically have even more amenities! I also know that even smaller towns like Wolfville in Nova Scotia or Perth in Ontario offer even more affordable housing.

Still, there’s no denying that the rising housing costs are a significant con of retiring in Canada.

7. Pro: Housing is Still Cheaper than in the US. 

I often grumble about the escalating housing prices in Canada – it’s ranked as the 8th least affordable in the world!

But, if you’re earning a US salary, it will probably still feel cheaper than buying or renting in the US, especially if you avoid looking at homes in British Columbia and Ontario. 

Americans pay, on average, 27.4% more on rent than Canadians. Rent for a 1-bedroom city apartment costs about $1,400 USD per month. In the US, it’s $1,800 USD.

My rent for a tiny rural home in California was 4x more than my rent in Toronto!

8. Con: Need 70% of Pre-Retirement Income

One significant con of retiring in Canada that can’t be overlooked is the financial threshold for comfortable living. 

Canadians estimate they need a nest egg of around $560,000 USD to retire comfortably, which translates to about 10-20x their pre-retirement salary during their golden years. 

This can be quite a challenge, particularly given the increasing cost of living and the rapidly expanding housing market in the country. 

Still, the average retirement age for Canadians is 64.5 years, and retired Canadians have an extremely low poverty rate. 

This financial reality has led many Canadian seniors to continue working post-retirement, although this does give retirees more purpose post-retirement.

9. Pro: FREE High-Quality Healthcare

I’ve mentioned a lot about the high cost of living in Canada, but the one place you will save money is on healthcare. Canada has a high-quality healthcare system known as Canadian Medicare, and it’s free for residents! 

This universal healthcare program prides itself on delivering comprehensive coverage to all citizens and permanent residents. All medical costs, from regular check-ups to specialized treatments and even long-term care and rehabilitation, are fully covered.  

Unsurprisingly, Canadians enjoy above-average life expectancy (age 84 for women and 80 for men) and healthy life years. 

Remember, Canadian Medicare only covers citizens and permanent residents, though. So, if you’re an expat in Canada, you will need to purchase international health insurance.

10. Con: Long Wait Times for Healthcare

Canada’s healthcare system is globally recognized for access and affordability, but one significant drawback is the long wait times, especially for specialized treatments. 

I deal with chronic illness and have personally experienced these challenges. While I’m super grateful for the all-inclusive medical coverage, it feels frustrating to wait months to see a specialist.

Luckily, private health plans are relatively cheap. These allow you to see private specialists and other doctors with shorter wait lists. 

But public universal healthcare is a game of patience only some retirees are willing to play.

11. Pro: Natural Beauty

The best part about living in Canada is the natural beauty here! I’m a homebody, but I love the outdoors and can’t get enough of Canada’s landscapes.

We have the Rocky Mountains in Alberta, the pristine coastlines of Prince Edward Island, and the turquoise lakes in British Columbia. 

If you retire in Canada, be sure to add seeing whales in Newfoundland to your travel bucket list, as well as the fall foliage in Quebec! 

12. Con: Brutal Winters

Spending retirement curled up with a good book or enjoying a warm cup of coffee while watching the snowfall might sound endearing at first. 

But you’ll quickly realize that the reality of Canadian winter is far less idyllic. It’s freakin’ freezing. 

In most parts of Canada, the outdoor temperatures often plummet way below freezing point and stay there for months on end! On top of that, dealing with icy roads and shoveling snow off your driveway becomes a regular chore.

However, if you can handle the cold, there are tons of winter activities to enjoy in Canada. 

There are loads of ski resorts, ice fishing, ice skating, snowshoeing, and even dog sledding. 

13. Pro: Can Easily Escape to the US and Mexico

But fear not. Escaping the frosty grip of winter is easier than you think! The United States and Mexico both have warm cities in the winter. 

Many Canadians, lovingly referred to as “snowbirds,” migrate south during the grueling winter months. 

Florida, Arizona, California, and beach towns across Mexico are favorite destinations for retirees in Canada. They offer a much-needed respite from the cold and a chance to spend some of the year somewhere new! 

So, even if you find winters daunting, remember that retiring in Canada doesn’t mean enduring snow all year round. You’re just a flight away from swapping your snow boots for flip-flops!

14. Con: Expensive Flights

Navigating the flight costs from and within Canada can be a challenge. Flights from Canada tend to be more expensive than those from other countries and are a far cry from $30 flights in Europe. 

This makes frequent travel hard on the wallet. 

The prices tend to lean on the higher side compared to other countries, making frequent travel quite expensive. For some reason, budget airlines have a hard time gaining traction here. 

So, while your winter escape route may be just a plane ride away, remember it might take a hefty chunk of your retirement savings!

15. Pro: Easy to Get Around Cities

There can be challenges in more rural parts of Canada, but the cities are well-equipped for public transit. 

When I was in Halifax, I used to take the bus to school. In Toronto, I’d hop on the train to my mom’s office and take streetcars to the gym after school. You get the idea!

By now, I’ve taken buses in almost every province in the country, and they’ve always been incredibly helpful and efficient.

An added bonus? They’re environmentally friendly! 

Once you turn 80, you must renew your Canadian driver’s license every two years, so many retirees prefer public transportation. 

16. Con: Limited Services Outside Cities

Canada’s cities have excellent infrastructure, but the same level of services doesn’t extend far beyond urban boundaries. 

Retirees considering a quieter life in smaller towns or rural areas should understand the tradeoffs, including limited accessibility to public transportation, higher food prices, and potential long distances for medical treatments.

I recently moved to Victoria and have experienced firsthand the challenge of obtaining medical treatments. It’s nearly impossible, and I almost always had to ferry to Vancouver, which I didn’t expect.

17. Pro: Active Lifestyle

Canada is an incredible place for outdoor enthusiasts, with scenic trails and expansive parks perfect for hiking, bird-watching, snowshoeing, or simply enjoying a picnic. 

In cities like Vancouver or Calgary, I’ve seen retirees join morning Tai Chi sessions in community parks and participate in fitness classes curated for seniors at local community centers. 

Countless gardening clubs nationwide offer a therapeutic way to stay active for retirees with a green thumb. 

Many retirees have even taken up canoeing on Canada’s endless lakes and rivers. 

This active lifestyle not only keeps Canadian retirees physically fit but also adds an element of fun and camaraderie to their golden years.

Final Thoughts: Should You Retire in Canada?

I think Canada is an amazing place to retire, with its stunning natural landscapes, free universal healthcare system, and diverse cultural experiences.

But when contemplating the pros and cons of retiring in Canada, it’s important to recognize the downsides. For example, there are limited pathways to becoming a permanent resident, and navigating cross-border financial matters can take time and effort.

Many foreign retirees spend 6 months in Canada (the maximum allowed as a tourist) and spend the rest of the year somewhere warm.

But if you figure out the logistics, retiring full-time in Canada promises an incredible experience for both native Canadians and foreigners.

If you’re still curious about retiring in Canada, here’s a deep dive into what life is like in Canada.