The dream of retiring to a sun-drenched beach or a charming European village is one shared by many Canadians. While living outside Canada after retirement can offer adventure and a lower cost of living, it also comes with complex challenges that require careful planning.
The Pros
Many popular retirement destinations offer significantly lower housing, food, and service costs, allowing your Canadian pension to stretch much further.
Escape the harsh Canadian winters for year-round warmth, which often leads to a more active and outdoorsy lifestyle.
Living abroad offers the chance to immerse yourself in a new language, cuisine, and history—keeping the mind sharp and life exciting.
The Cons
Provincial health coverage (like OHIP) usually lapses after 6-7 months abroad. Private international insurance can be costly as you age.
Depending on your residency status, Canada may withhold up to 25% of your CPP/OAS and RRIF payments. Non-resident tax filing is complex.
The emotional toll of being far from children and grandchildren can be significant, and travel costs for visits can add up quickly.
Critical Checklist
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Residency Status: Determine if you will be a "factual resident" or "non-resident" for tax purposes.
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Benefits Portability: Research how your CPP and OAS are affected by your specific destination country.
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Estate Planning: Ensure your will is valid in your new country of residence to avoid legal hurdles for heirs.
Professional Tip
Consider a "test drive" retirement. Spend 3-4 months in your target destination before selling your Canadian home or making permanent residency changes.