Can You Retire to Canada From the US? Here's What You Need to Know

If you’re an American considering whether to retire to Canada from the US, you’re not alone. Many people dream of relocating for an affordable and stress-free retirement, yet the financial reality depends heavily on location, lifestyle choices, and access to critical services. Understanding the actual costs across both countries can help you make an informed decision about your retirement destination.

According to 2024-2025 data, Americans expect to need approximately $1.8 million for a comfortable retirement, while Canadians anticipate requiring CA$1.54 million (roughly $1.07 million USD). However, these figures mask significant differences in how costs break down between the two nations. Both countries face retirement challenges: Canadians worry about inflation eroding their savings (with over 75% concerned about running out of money), while Americans grapple with healthcare uncertainties that drive their higher savings requirements.

Total Retirement Savings: Understanding the Gap Between Countries

The $730,000 difference between U.S. and Canadian retirement targets isn’t random—it reflects fundamental differences in healthcare, housing, and living expenses. Healthcare costs represent the largest divergence, with the American system requiring substantial private insurance reserves. Meanwhile, Canada’s public healthcare system reduces out-of-pocket medical expenses for retirees, lowering the total amount needed to retire securely.

Inflation presents challenges in both countries, yet Canadian retirees face particular pressures. With 63% of Canadians reporting that inflation significantly impacts their ability to save, the lower retirement target doesn’t necessarily mean easier retirement planning. Many retirees in both nations are responding by delaying retirement, cutting lifestyle expenses, or pursuing part-time work.

Housing: The Foundation of Your Retirement Budget

For Americans considering whether to retire to Canada, housing costs deserve careful analysis. The average Canadian home sells for CA$713,700 (approximately $498,804 USD), while U.S. homes average $357,138. However, this comparison tells only part of the story—major Canadian cities like Toronto and Vancouver command premium prices comparable to expensive U.S. markets, while smaller communities in either country offer significantly lower costs.

Rental options present a different picture. U.S. renters pay an average of $2,085 monthly, compared to CA$1,799 (around $1,256 USD) in Canada. For retirees choosing rental living over homeownership, this difference can meaningfully impact long-term financial plans. Location flexibility—whether you choose urban centers or smaller towns—remains one of the most powerful variables in your housing budget for retirement.

Healthcare Systems and Insurance Costs: Where the Biggest Savings Occur

Here lies perhaps the most significant advantage for Americans retiring to Canada from the US. Canada’s publicly funded healthcare system covers most essential medical services, with supplemental insurance required only for dental care, vision services, and podiatry. The average annual insurance premium for a 35-year-old Canadian is just over CA$700 (approximately $488 USD).

By contrast, U.S. Medicare covers only a portion of retiree healthcare needs. Supplemental insurance premiums average between $7,000 annually for Affordable Care Act (ACA) marketplace plans and $8,951 for employer-sponsored coverage. Long-term care expenses frequently become a major financial drain for American retirees, necessitating the higher overall retirement savings target.

This healthcare advantage represents a potential game-changer for U.S. retirees evaluating a move north. The difference of $6,500-$8,463 annually in insurance alone could provide substantial financial relief throughout retirement.

Daily Living Expenses and Cost of Life

Beyond housing and healthcare, everyday expenses significantly affect retirement financial planning. Research shows that living in Canada is approximately 21% cheaper overall compared to the U.S., with average monthly costs of $1,980 per person in Canada versus $2,498 in the U.S. This advantage encompasses food, transportation, utilities, and other essentials.

For retirees on fixed incomes, this cumulative 21% cost difference translates into meaningful purchasing power and financial flexibility. However, actual savings depend on your specific lifestyle choices, healthcare needs, and whether you choose urban or rural living.

Making the Move: Key Considerations for U.S. Retirees

Before deciding to retire to Canada from the US, several practical factors deserve consideration beyond raw cost comparisons. Immigration requirements, visa sponsorship eligibility, and provincial residency rules vary significantly. Some retirees qualify for retirement visas based on demonstrated financial resources, while others may need to pursue permanent residency pathways.

Currency fluctuations between USD and CAD directly impact your purchasing power and ongoing budget. Tax implications differ substantially—both countries tax worldwide income for residents, and coordinating Social Security benefits with Canadian government benefits requires careful planning. Social ties, climate preferences, and healthcare proximity to family members also influence the retirement-relocation decision.

Whether you’re retiring to Canada to capitalize on lower healthcare costs, enjoying the 21% cost-of-living advantage, or simply seeking a lifestyle change, success depends on thorough financial and legal planning. Consulting with cross-border financial advisors and immigration specialists can help clarify whether relocating north aligns with your retirement goals and financial reality.