Retiring Abroad: A Practical Guide for Canadians

Introduction

• Significant number of Canadians (106,000 in 2024) leaving Canada permanently
• Motivations include high costs, high taxes, and fear of outliving savings
• Exploring retirement abroad as a solution
• Important consideration: CRA rule affecting old age security (OAS)

Financial Challenges of Retiring in Canada

• Average Canadian retiree receives $1,300 to $1,500/month from CPP and OAS
• High living costs: Toronto rent = $2,100/month for a one-bedroom
• Total monthly expenses exceed $3,000
• CPP and OAS cover only a third of living expenses
• Many Canadians delay retirement or seek alternatives

Benefits of Retiring Abroad

• Lower cost of living in many countries
• Potential to live decently with $1,300/month
• Use Numbio for cost comparisons

Case Study: Retiring in Mexico

• Popular destination due to proximity, climate, and affordability
• Cost of living in Cancun: $1,700/month
• Significant savings potential
• Healthcare is modern, affordable; need for private insurance

Case Study: Retiring in Portugal

• Offers European charm and relatively low cost of living
• Cost: $3,000/month in Porto
• Requires D7 passive income visa
• Health care access and direct flights to Canada

Case Study: Retiring in Thailand

• Affordable cost of living: $1,200 to $1,600/month
• Healthcare is modern and affordable
• Requires Thai retirement visa at age 50+

Case Study: Retiring in Paraguay

• Low cost of living and favorable tax system
• Territorial tax system: foreign income not taxed
• Permanent residency options available

Retiring in Spain

• Higher cost but offers European lifestyle and infrastructure
• Requires non-lucrative visa with $40,000+ Canadian per year
• Effective planning needed for higher-end lifestyle

Critical Consideration: OAS and Residency

• OAS payments dependent on Canadian residency
• 10 years in Canada needed to qualify, 20 years to maintain abroad
• Example of losing OAS in Thailand due to residency rules

Planning for Retirement Abroad

• Importance of detailed planning for financial and lifestyle changes
• Considerations include taxes, healthcare, and local costs
• Use tools like Numbio for accurate cost estimates

Conclusion

• Retiring abroad can be financially beneficial but requires careful planning
• Must consider tax implications, healthcare, and lifestyle adjustments
• Professional consultation recommended to ensure a solid retirement plan

Call to Action

• Promotes 'Exit Canada' services for customized retirement planning
• Encourages consultation to map out retirement strategy
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