A shocking 106,000 Canadians permanently left the country in 2024. And many of them weren't just chasing sunshine. They were escaping high costs, high taxes, and the fear of outliving their retirement savings. I'll show you why so many Canadians are deciding to leave Canada, and why even some of them are choosing to retire abroad, and how you can do it, too. We'll cover the top countries where you can retire for way less than in Canada, while still enjoying great health care, weather, and lifestyle. And near the end, I'll reveal the one CRA rule that could shut off your old age security if you move and don't plan carefully. Living in Canada is expensive. Let's talk numbers. The average Canadian retiree gets about a combined $13 to $1,500 per month from CPP and OAS if they start at age 65. That might have worked 30 years ago, but in 2025, it might not cut in. Rent in Toronto for a one-bedroom averages about $2,100 per month. Add in $200 for utilities, $400 for groceries, and a $150 transit pass, and you're easily over $3,000 a month just to live modestly if you don't own a home. CPP and OAS barely covers a third of that. Retirement in Canada feels like running on a treadmill, working hard, but getting nowhere. So, what are people doing? Well, some of them are actually deciding to leave Canada altogether, not just for vacation, but for a better shot at retirement. Instead of delaying retirement, some clever Canadians are moving to places where their money stretches further. Where $1,300 a month doesn't mean just scraping by. It means living pretty decently. And that's exactly what we're diving into next. I like to use Numbio to get a rough idea of living costs around the world. So Numio says that in Toronto, a single person spends about $1,500 per month without rent. If you add in $2,000 for a onebedroom, you're looking at about $3500 to $4,000 a month just to live modestly. And that lines up with my estimates earlier. So, it's no surprise that many Canadians are delaying retirement or looking for a smarter options. That's where retiring abroad starts to make a little more sense. So, let's do a walkthrough with my financial software here. Meet Seth. He retires in 2025 at the age of 65 with just $281,000 in net worth after taxes. It's not a fortune, but he's hoping it'll carry him through retirement. He's living in Toronto spending about $50,000 a year and relying on a mix of CPP and OAS, about $18,000 annually to cover part of it. The rest it comes from his RRSP and TFSA withdrawals. In the first couple of years, he's holding on. But the warning signs show up fast. By age 70, he's already drained his TFSA, and by age 72, he's relying solely on RRSP withdrawals, over $46,000 a year, to keep up. Taxes are eating into it, too, with effective tax rates creeping above 14%. And by age 74, he's out of savings. And by age 76, his net worth has turned negative, which is the nightmare scenario for any retiree. So what went wrong? Seth lived modestly, but his costs were just too high for his savings to sustain. No adjustment for inflation, market returns, or unexpected costs. Now, this is obviously is a very simplified example, but it shows how quickly even a decent nest egg can unravel in a high-cost city like Toronto. Now, let's talk about Mexico, which is a top pick for Canadian retirees. When Canadians dream of retiring somewhere warm, affordable, and close to home, if it's not Florida, then it's Mexico that often tops the list, and for a good reason. You get year- round sunshine in beach towns like Cancun and Porto Varta, or mild spring-like weather in cities like Guadalajara. Healthcare is another major draw. Private clinics are modern, affordable, and fast. I've even had some dental work done there. I've had two root canals there, and the experience was way better than going to a dentist back in Canada, and about 20% of the price. Mexico also makes it pretty easy to stay long-term. The temporary resident visa is well suited for retirees and requires just about $103,000 Canadians in savings depending on which consulate you choose. Travel-wise, it's convenient. You have direct flights from most major Canadian cities, which makes it easy to visit family or have them visit you. Of course, there are a lot of trade-offs. A big concern is the safety, which really depends on the region. Uh, infrastructure can also be hit or miss in the smaller towns and other places and dealing with bureaucracy takes a lot of patience. Some Spanish helps a lot and since public healthcare isn't usually available to foreigners, private insurance is essential. Still, for many Canadians, the cost savings and lifestyle make the move more than worth it. So, what if Seth had retired in Cancun? Earlier, we looked at Seth trying to retire in Toronto with $300,000 in savings, spending $50,000 a year. By age 74, though, he was pretty much broke. But what if you move to Cancun instead? According to Numbio, a single person renting a one-bedroom there spends about $1,700 Canadian per month allin. So that's just about $20,000 per year. So it's the same person, same savings, but a completely different outcome. With much lower living cost, CPP and OAS cover most expenses, and he only makes small investment withdrawals. The result, his portfolio grows. At 70, he has $387,000. Then at 80, he has $586,000. and by 90 he has over $900,000. This is the potential power of location. A simple move made the difference between running out of money and actually building wealth in retirement. Next, let's talk about Portugal. If you're more into the laid-back European living, if you dream of cobblestone streets, seaside sunsets, and sipping wine in a storybook setting, Portugal might be your retirement match. It offers oldw world charm, a slower pace, great weather, and a relatively affordable cost of living, especially for Western Europe. Winters are mild, summers are sunny, and the Algarve has beach weather nearly all year. Porto and Lisbon are cooler and breezier, which many Canadians enjoy. Healthcare is excellent there, and once you're a resident, you can access the public system, but even private care is affordable, and many expats use both. Canadians can apply for the D7 passive income visa designed for those with steady income from sources like CPP, pensions, or investment. You'll need about €870 per month, which is only $1,400 Canadian to qualify. It's obviously farther than Mexico, but still accessible. Lisbon and Porto offer direct flights to Toronto in Montreal. Portugal won't be dirt cheap. It will fall somewhere between Canada and Mexico and cost. So, now let's look at our software and what it tells us about Seth when he retires in Portugal. So, let's say Seth picks Porto as his retirement destination. It's beautiful, walkable, rich in culture, and it's definitely a more upscale choice than Cancun, but it comes with a price tag to match. In places like Porto, you might pay around $1,300 per month for rent and another $1,700 for everything else, putting you at around the $3,000 month total, similar to the lower end of Canadian retirement spending. With rent and living costs combined, Seth is now spending about $36,000 a year. He still has around $300,000 in savings, and he's getting roughly $18,000 per year from CPP and OAS. The rest he covers by drawing down his TFSA first, then dipping into his RRSP. At first, everything looks manageable, but by age 75, Seth's savings have dropped to around $199,000. And by 80, he's down to just over $100,000. And by 84, the tank is empty, and he's out of money. Now, some retirees might be okay with this, but I like to plan for at least until the age of 90 for our clients because people are living a lot longer these days. So, what's the takeaway here? Portugal gave Seth a better runway than Toronto, but it still wasn't enough. He bought himself a few extra years of stability, but with $3,000 a month in expenses, he couldn't stretch his savings far enough. It's a softer landing than in Canada, but it still ends with the hard truth. The math just probably doesn't work here. So, let's take a look if small adjustments can save the plan here. What if he made just a couple of smart changes? So, let's say Seth delays CP to age 70 and starts melting down his RRSP from age 65 to 69 to cover the gap. That way, he lowers taxes early, let CPP grows to its max, and spends his withdrawal more evenly. That one move alone extends his savings by another two years. He now runs out at around age 86 instead of age 84. Now, at this point, if he was one of our clients, we'd sit down with Seth and explore some options. Maybe he works one more year. Maybe he trims spending a bit. Maybe he has a hobby where he can earn some money from. Or maybe he'll rethink where he lives and how often he travels. The point is, he's close. And with some smart planning, clothes can turn into comfortable. So, here's a pro tip. If you're really serious about leaving Canada, check out my video on the seven tax traps to avoid. It could save you thousands in the long run. All right, let's talk about a very far option. Thailand. Thailand continues to be one of the best value retirement destinations for Canadians. Whether you prefer the cooler mountains of Chiang Mai, the beaches of Phuket, the energy of Bangkok, or the chilled beach vibe of Huah Hin, you'll find a well-developed expat scene, rich culture, and incredible food. Healthcare is modern, affordable, and widely regarded as some of the best in Asia. Many of the doctors speak English, and private hospitals often exceed expectations, especially for the cost. And to qualify for a retirement visa, you'll only need to be 50 years old or older and show 800,000 Thai bot in a bank, which is about $33,000 Canadian. You have to transfer to a Thai bank, though. And the cost of living in Mai, a full lifestyle, including rent, food, and leisure, can run $1,200 to $1,600 per month. For someone like Seth who brings in $1,500 per month from CBT and OAS, this could be a perfect fit. Most of his basic needs are covered and his savings can continue to grow over time. Now, let's talk about Paraguay. Now, this is another country I've been to as well. Paraguay is flying under the radar, but we've been getting more and more inquiries about it at Blueprint from people who want to move there. And not just because it's cheap, it's a lot to do with the taxes. Paraguay runs on a territorial tax system, meaning foreign income like CPP, OAS, RIFs, or pensions isn't taxed at all. Local income is taxed at a flat 10% and that alone makes it appealing. But it gets better. In Asunion, you can expect to spend about $628 per month on living expenses with rent for a one-bedroom around $583. That means you're living well in just over $1,200 per month. Paraguay also offers ways to obtain a permanent residency visa with minimal hassle. For Seth, this could be the financial sweet spot. very low cost, tax efficient, and simple to settle long term. And then there's Spain, which delivers a European lifestyle many retirees dream of. Think sunny coastlines, world-class food, and rich history. Healthcare is excellent with affordable private insurance required for non-EU residents like Canadians. We looked at Aleante as a benchmark. Numbio data puts monthly living costs at around $1,57 with rent for a onebedroom in the city center at about $1,300, which brings the total monthly expenses around $24 to $2,500. Close to what you'd spend in parts of Canada, but maybe even a little bit cheaper than some parts in Portugal. To retire here, Canadians can apply for the non-lucrative visa, which requires about 40 to $45,000 Canadian a year in income. It's a higher bar, but doable if Seth plans ahead. Maybe he withdraws from his RRSP earlier or delays CPV to boost income. If Seth is willing to save for a year or two longer, Spain offers a higherend lifestyle, strong infrastructure, great weather, and access to the rest of Europe. Now, let's talk about this one OAS mistake that might actually blow up this whole retirement abroad plan. Many Canadians don't realize you could lose your OAS payments if you retire abroad without meeting a key rule. If you apply while living in Canada, you only need 10 years of Canadian residency after age 18 to qualify. But then if you're living outside of Canada, you need 20 years to keep receiving payments long term. So if you have between 10 and 20 years, say, of living in Canada, you might only get OAS for 6 months after leaving. Unless you're in a country with a social security agreement with Canada. Take David for example. He's 67, has 15 years of Canadian residency, and starts collecting OAS in Calgary. Then he retires to Thailand. 6 months later though, his OAS stops. Why? is because Thailand doesn't have a social security agreement with Canada and David didn't hit the 20-year mark. Even though he qualified while in Canada, he loses the benefit abroad. So, make sure you know the rules before you move or risk losing income that you've earned. But before you pack your bags, note that this is just a snapshot of a few countries. If you're eyeing a different country, I highly recommend using Numbio to compare the costs like rent, food, and utilities, much like I did in this video. And don't count on just CPP and OAS alone. Inflation, currency shifts, or healthc care surprises can throw off your budget completely, especially in developing countries. And life abroad definitely isn't for everyone. Distance from family, new systems, and language barriers can be extremely difficult. A lowcost retirement can be amazing, but only if it's backed by a solid plan. Where you live can also transform your retirement, but also comes with tax rules and big financial decisions. And that's where we come in. If you're serious about retiring abroad, let's map it out together. the costs, taxes, and the whatifs so you don't run out of money halfway through your dream. Check out our Exit Canada services on the website and book a free consultation when you're ready. Let's build your blueprint for retirement anywhere in the world. 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