Sunday , 14 April 2024

Canada is a Great Place to Retire – Here’s Why (+4K Views)

While [Green Valley] Arizona, [Naples] Florida, [Ajijic – Mexico or Mendoza – Argentina,] or some hidden island in a foreign land, might seem like the dream place to live out the end of one’s life, it turns out that Canadians just might be better off at home [and Americans and others should seriously consider emigrating to Canada sooner than later]. Here is a brief summary of the reasons why.

So says Brandon Miller in edited excerpts from his slide show from which can be accessed below*.

Lorimer Wilson, editor of (Your Key to Making Money!) has edited the article below for length and clarity – see Editor’s Note at the bottom of the page. This paragraph must be included in any article re-posting to avoid copyright infringement.

Miller goes on to say, in part:

In a presentation at the Canadian Institute of Financial Planners conference in Vancouver, Peter Drake – Fidelity Investments Canada’s vice president of Retirement and Economic Research – recently proposed 10 reasons why Canada is a great place to retire.

1. Quality of life

Canadians have a fantastic quality of life that could not be had in some other popular retirement locales…. Our stable government, strong individual rights, and accessible healthcare are all factors that lead to a better lifestyle. The abundance of resources is also a plus.

2. Life expectancy

Canadians have a long life expectancy. Statistics Canada’s latest figures state that males now have a life expectancy of 79, and women a life expectancy of 83. These are nationwide numbers, though there are minor fluctuations by province/territory. Drake says that it is not uncommon, then, to have a retirement that lasts 25 or more years. I think that is pushing it because, who really retires at 55 anymore besides a lucky few? Still, a 20-year retirement still sounds like a thing of beauty in my books.

3. Public pension system

Our pension plan is listed as a huge draw for retirement at home. According to this presentation, the federal government’s latest check of the health of the Canada Pension Plan (CPP) has declared it able to pay all its liabilities for at least the next 75 years….

4. Health care

It should not be a shock to anyone to see health care on this list. Our government covers 70% of costs, with the individual paying the…[balance]. Long-term care costs can be expensive, but nothing like in the United States. Fidelity research concluded that Americans should save $240,000 for health care in retirement. Canadians can likely get away with far less.

5. Retirement savings flexibility

According to Drake, the numerous ways to save for retirement in Canada are one reason why Canadians should retire at home. Since there are multiple ways to generate retirement income, Canadians have plenty of choices and can find what works best for them.

6. Low inflation

Retired Canadians should retire in our country to take advantage of the low inflation rates. The Bank of Canada has a very strong record for keeping inflation low, and low inflation impacts retirees more than any other group. This is because it erodes purchasing power.

7. Pension coverage may improve

If you’re 75 years old, you might not care too much about this point but if you are approaching retirement age, and especially if you’re a younger worker, the fact that there are ongoing discussions about pension coverage should be seen as a positive. Recent deliberations are about which route governments should take to improve employee pension coverage, which includes considering the adoption of Pooled Registered Pension Plans or enhancing the Canada Pension Plan. Either of these options would primarily benefit individuals who are younger and earlier in their career.

8. Canada’s fiscal health

Canada is not the richest country in the world, but it is high up on the list. Our gross domestic product is the twelfth highest of any country. Many popular retirement havens are in far less wealthy nations. Canada’s strong fiscal health is one reason to consider retiring at home rather than in a more exotic locale.

9. Rising net worth

Drake lists the rising average net worth as a reason to retire in Canada. Recent statistics show that Canadian households are worth more than American ones, and that is because our housing market is far stronger. While it is becoming increasingly difficult for younger Canadians to purchase their first home, middle-aged and senior citizen homeowners are in a good spot to generate income from their real estate.

10. Jobs for older Canadians

It is becoming more and more common for older Canadians to work part-time in retirement. Fidelity’s research found that 79% of pre-retirees expect to work part-time after retiring from their full-time job. Money is not the only factor, as many older Canadians are choosing to work in order to remain mentally healthy, to keep physically active, and/or to stay busy.

When and where are you planning to retire…? [If you are Canadian you really can not do much better, if at all, than spending your retirement in Canada. If you live elsewhere seriously consider emigrating to Canada to establish your career and reap the benefits Canada will provide when you eventually retire.]

*  (To access the above article please copy the URL and paste it into your browser.)

Editor’s Note: The above article may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.

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