Have you ever wondered what you will do after retiring? Some of you may not have any idea yet, while some of you may have designed the whole plan of what you will do.
It is obvious that almost everyone, after retirement, would want to relax and spend quality time with their loved ones in a serene environment. A clean and green place with a lively atmosphere, good healthcare facilities, and minimum taxes is the ideal choice for many retirees. Therefore, Canada is a popular choice for thousands of people every year.
People from around the world want to settle in this country. You may find it hard to believe many American citizens consider Canada an ideal place to retire. But you may have several questions about eligibility criteria; what factors you must consider before choosing Canada? So read this blog to get a complete idea about the same.
Can an American Citizen retire in Canada?
The first thing to address is whether can an American Citizen retire to Canada? Yes, absolutely. If you plan to settle in Canada after retirement, you can do so. Canada is often the first choice of many because of the healthcare amenities and affordable housing. Moreover, it is among the safest and most lively countries around the globe.
How to retire to Canada?
Settling in Canada is not as easy as it sounds. America and Canada have been close for a very long time now. Unfortunately, that does not mean an American citizen can retire to Canada without any documentation. American moving to Canada might even have to consult an attorney to save themselves from the legal issues that might arise while moving. Moreover, Canada does not provide retirement visas for everyone to settle there.
Now, the question is how American can retire to Canada without any hassle?
● If you want to move to Canada after retirement, you must find a residency program or visa that complements your situation.
● Do you have children or grandchildren in Canada? If yes, then you can obtain a visa under the parents and grandparents program. Through this program, parents and grandparents can stay in Canada for upto two years, provided their children or grandchildren are financially capable of taking care of them.
● If you are under the age of 30 years and have two bachelor’s degrees or one master’s degree, you can apply for Express Entry in Canada. Selected candidates are given permanent residency.
Why should you retire to Canada?
Our world is full of beautiful places; there is no denying that. But why do American citizen retire to Canada? Is there something special about this place? Or is it because of the high economic growth? Or are there some benefits or policies for retirees? The answer to these three questions is yes, yes, and yes! Not to forget, Canada is on the U.S.’s doorstep, making it easily accessible for American residents. You can experience a wide variety of benefits after you retire to Canada. Some of them are:
1) High Economic Growth
If you have left your job and are planning to start your life somewhere else, Canada can be the best option! Why? Canada has high employment rates, i.e., many industries and businesses are operating but face problems due to a shortage of skills. The Canadian government itself promotes schemes to attract employees from abroad.
2) Healthcare Facility
Canada continues to be the perfect place to settle down. Aside from economic security, the government provides permanent residents with medical and health service programs and policies.
If you are above 65 and do not plan to seek employment, then you can register yourself for the Canada Pension Plan( CPP). Under this fund, you will get a monthly pension after your retirement. You have to file some paperwork and documents to be eligible for it.
What are the visa requirements for Americans retiring to Canada?
The visa requirements in Canada excessively depend on the purpose and the duration for which you will stay in Canada:
● If you are a resident of the U.S., you can stay in Canada for six months without it.
● If you have a family living here, you can settle for as long as two years without complications.
If you have plans to retire and become a permanent resident of Canada, you can go for a permanent residency. American moving to Canada have to go through a complete application process to settle there. The process can stretch over six months before receiving any response. The following are the documents required for the application :
● Copy of Canadian income tax returns if filled in the recent five years
● Proof that you are an American resident
● Proof that you can support their stay in Canada
● Ownership of property in Canada
● Clean criminal record
How Much Money Do You Need While Retiring In Canada?
One may think living in Canada will be reasonable after coming from America. Though, it is not correct. Many Canadian states like Toronto and Vancouver are more expensive than New York and California. If you plan to retire in Canada, you must have a good balance in your bank account to support yourself here.
According to the reports of Stats Canada in 2019, an average 65-year-old spends approximately $69,000. The calculation was without any inclusion of tax payments. When American citizen retire to Canada, they should keep such information in mind. If you are worried that the amount is high, you should consider saving money to live your life comfortably.
What are the taxation-related norms in Canada for retirees?
When you are moving from America to Canada, how to pay taxes becomes a big issue. Do I pay tax to America or Canada? It can be a tricky situation if not understood carefully.
It depends heavily on whether you are considered a resident of Canada or just a visitor. If you are a resident of America, you must be aware that you have to file the income tax return with the U.S. only, no matter where you are staying.
However, once you obtain residency in Canada, you can enjoy tax benefits while paying taxes for both countries:
● Taxes in Canada are less than the income tax you pay in America.
● You can reduce $100,000 of your income from income tax if you stay for at least 330 days in Canada every year.
● Canada and the U.S. are very close and share a good relationship. The U.S.-Canada tax treaty allows an American resident to regain the tax paid on social security benefits when retiring in Canada.
What are the healthcare-related norms in Canada for retirees?
Canada is known for its excellent healthcare and medical services. It is one of the many reasons why people go there after retirement. Canada has a universal healthcare system, which makes it accessible to all, even those with financial problems. Residents with public health insurance can ask for free check-ups.
Americans moving to Canada do not get such benefits directly, and they must complete the paperwork to get these facilities. Therefore, consider the following things:
● Opt for private medical insurance if you plan to live temporarily in Canada.
● Contact a medical insurance company so you can ask for medical insurance to access the healthcare facilities.
As magnificent as the sights and views in Canada are, the quality of living also matches them. Everything a person can expect in a place is available in Canada. Affordable housing, free healthcare systems, and world renowned universities make Canada an ideal place for American planning to retire here.