Canadians staying put in retirement

BMO Retirement has recently issued a Retirement Institute Special Report that reveals the majority of Canadians are now choosing to spend their retirement years in Canada.

The new study titled ‘Where do Canadians plan to retire and why?’ revealed that 85 per cent of Canadians over the age of 45 plan to stay in Canada during their golden years, mainly because of financial and family reasons. Relocating can create many new expenses such as travel costs to visit relatives, as well as a higher cost of living due to increased healthcare costs and taxes in places like the United States. As a result, experts speculate, more people are choosing to stay closer to home.

Despite the prior belief that many plan to retire outside Canada, the study revealed this to be very much untrue. The findings indicated that Canadians prefer to stay in Canada, with only five per cent planning on retiring to the United States, two per cent in Europe and only one per cent to Asia, Mexico and South America.

When people do choose to relocate, some of the key reasons for doing so include weather, financial reasons, proximity to family and friends and better access to healthcare and support services.

The study also revealed that Victoria, BC remains the retirement capital of Canada with 15 per cent of boomers choosing it as their number one choice for retirement. People in the prairies (Alberta, Saskatchewan and Manitoba) were found to be most likely to relocate, while those in Atlantic Canada were least likely.

What are your retirement plans? Staying close to home? Relocating to a warmer climate? Tell us in the comments!

Photo ©iStockphoto.com/ Catherine Yeulet