Nov 6, 2024
As the likelihood of Donald Trump winning the presidency increased over the evening of Nov. 5, a rush of Americans hopped onto Google to key in one five-word query: “How to move to Canada.”
Late into the evening and carrying on the next day, the search engine saw a noticeable spike in this search term — particularly in states like Vermont, Maine and New Hampshire — along with others like “If Trump wins can I move to Canada?” and “Canada work visa.”
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For those unsatisfied with the results of the 2024 election, Canada is apparently looking pretty good right now. And why wouldn’t it, with its vast mountain landscapes, vibrant cities, famously affable neighbors and access to universal health care?
But it’s not just politics these days that has so many Americans thinking about immigrating. The high cost of living in the U.S. is forcing many to seek shelter where their dollar can go further — especially for those about to or already retired.
And considering that the U.S. dollar has been consistently stronger than its Canadian counterpart over the years, Canada becomes all the more appealing. At the current exchange rate, $1 nets you around C$1.39.
But like many things associated with retirement these days, packing up and moving north of the border isn’t all that simple. Here’s what you need to know.
Is retirement in Canada realistic?
Despite the strength of the U.S. dollar compared to the loonie, the cost of retiring in Canada may surprise Americans.
A Bank of Montreal survey from earlier this year suggests Canadians believe they need CA$1.7 million to retire, or roughly $1.3 million. That’s not that far off from the expectations of Americans, who feel they need $1.46 million to retire comfortably.
Even if it ends up costing about the same overall to retire in Canada as it would in the U.S., there are other factors to consider regarding one’s retirement needs.
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There are also tax hurdles you may need to deal with, and you’ll have to meet certain requirements to access universal health care.
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How to move to Canada
If you’re considering Canada, numerous expatriation-focused websites can help you navigate the sometimes tricky paths to gaining long-term entry to the country, as well as the tax implications and liabilities of maintaining dual citizenship should you choose that route.
For those who already have family in the country or a special skill, the path may be more expedient. The Government of Canada has a number of immigration programs for relocating to Canada. Make sure you explore all the options so you land on the correct one for your situation.
Once you find your preferred method of migration, you’ll still want to weigh some distinctly Canadian considerations.
Health care
Canada’s universal health care is only accessible to citizens and permanent residents. There are several paths to gaining permanent resident status. In the meantime, you may have to acquire private insurance.
The nation’s health-care system can provide access to comprehensive coverage, although it’s important to note as health care is a provincial mandate, you may find certain provinces have longer wait times for certain procedures. You’ll also find that prescription medications are not always fully covered. Access to more complex procedures have often sent American retirees back to the U.S. for care.
Taxes
American citizens must file tax returns annually with the U.S., regardless of where you live. Your tax obligations to Canada will depend on whether you’re considered a resident or visitor.
Canada has a progressive income tax system, meaning higher-income individuals pay higher tax rates. Provinces also have their own tax systems as well.
Exchange rates
Retirees considering Canada should be mindful of exchange rates if their retirement savings are in a different currency. Things can change quickly, and fluctuations in currency values can significantly impact purchasing power and overall financial stability. The price tags on common goods — such as gas or groceries — can be shocking if you ignore the currency exchange rate.
Retiring in Canada offers numerous advantages, including a high standard of living, excellent health care and beautiful landscapes. But it’s essential to carefully assess your financial situation and consider factors such as the cost of living, health coverage, taxes and lifestyle preferences.
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Chris Clark is a Kansas City–based freelance contributor for Moneywise, where he writes about the real financial choices facing everyday Americans—from saving for retirement to navigating housing and debt.
