This article takes a look at the 21 best places for Canadians to retire abroad. If you wish to skip our detailed analysis on savings perspectives, challenges, and alternatives for Canadians, go to 5 Best Places for Canadians to Retire Abroad.
Navigating Retirement Realities: Savings Perspectives, Challenges, and Alternatives for Canadians
While Americans contemplate a $1.3 million safety net for retirement, those in the Great White North beg to differ. According to a BMO Survey, the prevailing sentiment amongst Canadians is that a robust $1.7 million is the figure needed to navigate retirement years. In the country, the most common option that people are using to save up money for retirement is an RRSP. An RRSP is a Registered Retirement Savings Plan that is tax deductible. Individuals who save money in the account can claim it on their taxes and receive a tax break. While the average amount saved by Canadians in RRSP varies across regions, the national average as of 2022 stands at $144, 613. Canadians use this money "as a cushion" for their retirement income. Other popular retirement accounts in the country are Tax Free Savings Accounts (TFSA), and Canada Pension Plan (CPP).
Statistics Canada reveals that economic families between ages 55 and 64 have an estimated $645,599 saved in retirement savings, and another $163,600 saved as financial savings, totaling a total of $809,100. Evidently, many Canadians have diligently prepared for retirement, while others, regrettably, have not. In this regard, a survey by H&R Block, Inc. (NYSE:HRB) Canada, a leading tax experts in the country, has some interesting findings.
The survey has revealed that more than half of people in Canada believe that they are behind retirement savings. According to H&R Block, Inc. (NYSE: HRB) Canada, 52% of survey respondents express concerns about insufficient funds remaining at the end of each month, anticipating the need for part-time work even after retirement. The Financial Flexibility Survey by the Royal Bank of Canada (NYSE:RY) agrees, stating that inflation has been eating away the savings of many Canadians and hampering their efforts towards retirement.
“Not so long ago, the traditional vision of retirement was that at around 65 years old, Canadians ‘hung up their hats’ and celebrated the end of full-time employment. What we’re seeing now is that the vision for retirement has evolved dramatically – fueled by shifts in tax-friendly savings plan options, evolving workforce realities, the gig economy, and the prevailing economic environment.”
The Royal Bank of Canada (NYSE:RY) also states that the rising cost of living is among the top worries of Canadians. Craig Bannon, director of regional financial planning support at the Royal Bank of Canada (NYSE:RY), has revealed that one-third of Canadians don't even have an emergency fund for themselves, hampering their financial flexibility.
Things seem even more bleak for renters, who believe that they need to save 50% more for retirement than those who own a home. A report by Mercer International Inc. (NASDAQ:MERC) Canada, a global consultancy firm, reveals that renters who are currently in their millennial age need to save at least eight times their salary if they wish to retire at 68. Meanwhile, those who own homes need to save only 5.25 times their salary to retire at 65.
Basing its report on data from the proprietary Mercer International Inc. (NASDAQ:MERC) database, the survey states that the above would hold true considering the millennial is aged 25, has a starting salary of $60,000, and contributes at a 10% rate.
“Home ownership also gives retirees flexibility, as retirees who downsize may be able to access a significant amount of money. Renters, conversely, must pay rent every month or face eviction — whether they are 25 years old or 85 years old,”
Due to the cost of living crisis, lack of savings, and a widespread lack of preparedness for the future, many retirees in Canada are looking for a way out of their financial troubles. In response, a significant portion has resorted to re-entering the workforce, with over half of those aged 60 and above expressing that employment is a necessity rather than a choice. Simultaneously, a considerable cohort is opting for a different path—retiring abroad. Canadian expat retirees have different motives when they choose to retire overseas, such as moving to a sunnier region, a more affordable one, or one where they can retire luxuriously.
When asked about the best countries for Canadians to retire abroad, financial journalist and speaker Andrew Hallam suggested Portugal, Spain, and France as top contenders. While there are tons of great options for retirement, the real question is can a Canadian retire in another country? While the process isn't relatively straightforward, retiring abroad for Canadians is very much possible. There are many things to consider, such as cost of living, visa requirements, healthcare, and language barriers. Once these things are tackled, Canadians can move on to live in their dream retirement destination.
21 Best Places for Canadians to Retire Abroad
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Methodology
To compile the list of best places for Canadians to retire abroad, we have used several sources such as Planswell, Live and Invest Overseas, Wealth Professional, Reddit, and Quora. Next, we ranked the places compiled based on their number of searches to retire, climate, cost of living, and livability.
Each score was summed up and averaged to calculate an Insider Monkey Score. Places were ranked in ascending order from the lowest to the highest scores. The cost of living discussed below includes average international healthcare insurance, which is around $500.
Here are the best places for Canadians to retire abroad:
21. Costa del Sol, Spain
Insider Monkey Score: 3
Many expat retirees find the idea of escaping the harsh Canadian winters in favor of the warmer climate in Spain to be an appealing decision. Costa del Sol, in particular, is favored for its breathtaking beaches, exquisite cuisine, and its status as a golf enthusiast's haven, boasting over 70 golf courses. On average, the monthly cost of living, including international healthcare insurance, is $3,000 for an individual.
20. Panama City, Panama
Insider Monkey Score: 3.8
One of the easiest countries for Canadians to retire abroad is Panama. Canadians specifically prefer Panama City because of its established expat community, modern infrastructure, beautiful scenery, and mild climate. The temperature in Panama City typically varies from 75°F to 90°F throughout the year, offering a consistently warm and tropical climate year-round. The average monthly cost of living for an individual retiree, including international health coverage, is $3,000.
19. Puerto Vallarta, Mexico
Insider Monkey Score: 3.8
The resort town of Puerto Vallarta on the Pacific Coast is one of the best places for Canadians to retire abroad. An individual expat retiree can live comfortably under $3,000 a month, relishing its cultural richness, scenic beauty, and well-established expat community. The coldest month in the city is January at 72°F, while the hottest temperatures are from June through October, with daily highs usually above 88°F.
18. Auckland, New Zealand
Insider Monkey Score: 4.3
New Zealand, one of the best places for Canadian expats to live, makes it to our list owing to its natural beauty, strong healthcare system, and high quality of life. Auckland is particularly favored owing to its cultural diversity, urban amenities, and picturesque landscapes. On average, the monthly cost of living for an individual retiree is $2,740. The temperature typically varies from 47°F to 74°F throughout the year.
17. Brussels, Belgium
Insider Monkey Score: 4.7
Brussels, Belgium is one of the best places to retire in Europe owing to its thriving expat community, well-developed healthcare system, and diverse culinary scene. On average, the monthly cost of living for an individual retiree (including international healthcare coverage) is $2,722.
16. Providenciales, Turks and Caicos
Insider Monkey Score: 6
Canadian expat retirees can buy their way into permanent residency in Turks and Caicos by making a home investment between $300k and 1M. Those who wish to retire temporarily can also do so without the investment. Providenciales, in particular, is an exciting choice owing to its beaches, water sports, golf courses, and natural beauty. An individual retiree can enjoy a comfortable retirement with an average monthly budget of $2,700.
15. Playa Del Carmen, Mexico
Insider Monkey Score: 7.2
Those who want to lead an active lifestyle in their golden years can do so in Playa Del Carmen, Mexico. From walking and running on the clean white sand beaches to cycling downtown and relishing Mexican culture, there is much to do for retirees. On average, the monthly cost of living for an individual retiree is $2,376.
14. Sunshine Coast, Australia
Insider Monkey Score: 7.7
From trekking in the Hinterland and exploring ancient volcanic peaks to indulging in a luxury retreat in the rainforest, retirement on the Sunshine Coast seems like the perfect dream. Over the year, the temperature typically varies from 50°F to 83°F. On average, the monthly cost of living for an individual retiree is $3,500.
13. Perth, Australia
Insider Monkey Score: 8.1
Canadians may be choosing Perth for its sunshine, but that's not the only reason. The city is also revered amongst retirees for its beautiful beaches, relaxed pace of life, and multicultural community. On average, an individual expat retiree can live comfortably in Perth for $3,300 per month.
12. Valletta, Malta
Insider Monkey Score: 8.1
One of the best places for Canadians to retire abroad is Valletta, Malta. From its rich history and stunning architecture to its excellent climate and modern amenities, the city offers a magnificent retirement experience for expats. On average, an individual expat retiree can live comfortably on $2,080 per month.
11. Lisbon, Portugal
Insider Monkey Score: 8.5
Portugal is one of the best countries for Canadians to retire to, owing to its high quality of life, well-regarded healthcare system, and stunning landscapes. Lisbon is particularly attractive to retirees owing to its warm weather, modern amenities, and rich heritage. On average, the monthly cost of living for an individual retiree is $2,500.
10. Boquete, Panama
Insider Monkey Score: 8.5
For the Canadian looking for the best country to retire on a budget, Panama is a good option. Home to an established expat community, Boquete offers retirees stunning views, temperate weather, and a vibrant culture. Over the year, the temperature typically varies from 55°F to 75°F. On average, a monthly sum of $2,000 is deemed sufficient for an individual retiree to maintain a comfortable standard of living.
9. Kuala Lumpur, Malaysia
Insider Monkey Score: 9.8
From world-class medical centers to delectable cuisine and affordable cost of living, Kuala Lumpur can be one of the best places for Canadians to retire abroad. On average, an individual expat retiree can live here for $1,500 a month.
8. Madrid, Spain
Insider Monkey Score: 10.6
One of the best places to retire for Canadian expat retirees is Madrid, Spain. The warm climate, affordable cost of living, modern infrastructure, and good quality of life make retiring here worthwhile. On average, the monthly cost of living for an individual retiree is $2,600.
7. Valencia, Spain
Insider Monkey Score: 11.1
Spain is not only ideal for the weather but is also one of the cheapest places a Canadian can retire to. Expats usually choose to retire in Valencia because of its vibrant culture, Mediterranean climate, and affordable living. Including international healthcare insurance, an individual retiree can expect to spend a monthly average of $2,576.
6. Buenos Aires, Argentina
Insider Monkey Score: 14.9
One of the best places to retire in Argentina, Buenos Aires offers retirees a high quality of life, delectable cuisine, and lots of social events to keep busy. Fun-loving retirees also get to enjoy the vibrant nightlife here. On average, an individual retiree can live comfortably in Buenos Aires for $1,500 per month.