Retiring to Canada – A Complete Guide
Canada has a huge amount to offer visitors. Whether you’re planning a short break or have fallen in love with the country and want to make it your home, you’ll find a warm welcome, vibrant cities and some of the most stunning natural scenery the world has to offer.
What’s more, high standards of living, varied recreational and cultural attractions, and a robust healthcare system make an especially attractive place for people who want to retire to Canada.
This guide covers all you need to know as a UK citizen looking to retire to Canada. We’ll cover pension options, the cost of living, and how to make your money go further.
Is Canada a good place to retire?
Canada is a modern, developed country with all the benefits that brings, including strong healthcare, great facilities to relax, cities with excellent public transport options, and a range of entertainment choices. Alongside this, Canada has stunning natural resources, perfect if you’re a more adventurous type.
Canada is a huge country, which means you can choose from a broad range of locations for retirement. Maybe you want a smaller town with an active local community – or perhaps climate, culture or cuisine are key factors for you. No matter what’s important for your retirement dreams, you’ll be able to find it in Canada with the right research.
Keep reading for our top tips on how to organise your Canadian retirement – or check out this detailed guide to moving to Canada for work, study, or permanent residence.
Can a UK citizen retire to Canada?
The UK and Canada have close ties. As a British citizen you’ll be able to visit with relatively little paperwork required – although you’ll usually need a visa or permit for longer stays or to become a permanent resident. Here’s what you need to know.
Requirements for retiring to Canada
UK citizens don’t usually need a visa to enter Canada. However, you may need to apply for a visa or permit if you intend to stay in Canada for more than a few months. Full details of the different visa options are available online, or from the Canadian High Commission in the UK.
Even if you’re only headed to Canada for a short trip to explore, you’ll need to get an electronic travel authorisation (eTA). You can apply for your eTA online before you travel via the Canadian government’s webpage.
It’s worth noting that at the time of writing, entry requirements for Canada – as with much of the rest of the world – are subject to change due to the global pandemic. Get up to date advice on your options before you make any solid plans.
Pensions in Canada
Before you can start to plan your dream retirement in Canada, you’ll need to work out your pension options and entitlements.
Private pension companies don’t normally pay out pension annuities outside of the UK. Depending on the scheme you’re in, this may mean you need to have your pension paid into a UK bank account and then transfer it yourself to your CAD account as and when you need it.
In some cases, you can choose instead to transfer your entire private pension pot to a provider based in the country you move to. However, this can be tricky to arrange or mean you pay more tax. Take professional advice before you make any decisions about how best to access your private pension if you’re unsure.
If you draw a UK state pension, you may be able to have it paid into an account in Canada instead of at home. However, your CAD payments will vary from month to month as the exchange rate changes, which can make planning tricky. Your pension may also be subject to different rules if you move abroad. For example, while your state pension amount would be subject to annual reviews in the UK, you can not currently benefit from any increase to the UK state pension amount if you live in Canada.
Finally, if you have previously worked in Canada you may be entitled to draw a Canadian pension. Check out the Canadian government’s resources on Old Age Security to learn more.
Expat money management
As an expat living abroad, you’ll probably need to transfer money between currencies. This may be to make your UK pension funds available in Canada, to cover any remaining bills you may have in the UK, or to send payments to friends, family and businesses around the world.
When choosing a provider for your payment, make sure you check out both the fees and the exchange rates on offer. Many providers advertise low commission – or even zero fee transfers – but then add a markup to the exchange rates used. Compare money transfer specialists and keep an eye on the CAD exchange rate, to make sure you’re getting the very best available deal.
Best places to retire in Canada?
The best place for you to retire in Canada depends on your personal preferences and budget. Some strong options if you’re looking for city life include Vancouver, Ottawa and Calgary.
Vancouver was ranked 3rd in the Mercer World Quality of Living rankings for 2019, with Ottawa coming in 19th and Calgary in 32nd place. The good news is that many Canadian cities score well in these rankings, which look at everything from the costs of day to day life, to the political situation, and recreation options.
Vancouver, on the western coast of British Columbia is one of Canada’s more diverse cities with strong communities from all over the world contributing to a vibrant atmosphere. As well as sunbathing or walking on the famous coastline, you can ski in the winter, and still access all the amenities of city life.
Ottawa is Canada’s capital city, and as such can have slightly above average prices for rent and consumer goods. However, it’s a cultural hub with great access to nature, and 4 distinct seasons means you can enjoy sunny summer afternoons, as well as brisk winter walks.
Our final pick – Calgary – is the 3rd largest city in Canada. Although life in a city is always going to be more costly than living in a rural area, the costs of living in Calgary are relatively reasonable. You’ll also get to enjoy the variety of a cosmopolitan city and easy access to the Rocky Mountains.
Cheapest cities to live in Canada
Surprisingly, some of the cheaper Canadian cities are also among the most famous.
Numbeo data suggests that Quebec and Montreal, for example, have relatively low costs of living compared to other major cities, meaning your money goes further. You may also want to check out other attractive options like Edmonton – or choose a smaller city like Brampton which has great access to both city amenities in Toronto, and all the nature you can handle.
What’s the cost of living in Canada?
How much life costs in Canada will vary according to the things you enjoy doing. However, it’s possible to get handy data from online sites like Numbeo to see the average costs of everyday items and rent. Here’s a sample to get you started:
| Item | Cost in Canada |
| Loaf of bread | £1.65 |
| Litre of milk | £1.41 |
| 0.5litre domestic beer | £3.40 |
| 3 course meal for 2 – mid-range restaurant | £39.72 |
| Rent 1 bed, city centre apartment – Toronto | £1,151.16 |
| Rent 1 bed, city centre apartment – Brampton | £959.11 |
*Data correct at time of research 3rd March 2021
How much money is needed to retire in Canada?
The overall cost of retiring in Canada will depend on where you choose to live and the type of activities you enjoy. In broad terms, city life can be more pricey than living somewhere more rural – but you may decide that easy access to amenities makes that worthwhile. Planning your costs starting with the major expenses like rent can be a good way to build a budget and work out how your new life in Canada could shape up.
Working out how much you need to save for your retirement can be a daunting exercise. However, there are plenty of tools available to help you plan, from online calculators to professional financial advice services. Do your research, think about the lifestyle you want to lead in retirement, and you’ll be on track to create an optimal saving plan.
Whether you’re just starting to plan your retirement in Canada, or about to make the move, you’re in for an exciting ride. Enjoy your new adventure, and good luck!
