A majority of Canadian boomers plan to spend their sunset years in Canada, according to BMO Retirement Institute Special Report.
Titled ‘Where do Canadians plan to retire and why?’, the study noted that 85% of Canadians over the age of 45 indicate they plan on staying in Canada during their retirement years. Finances and family considerations were found to be the key motivators in deciding where to retire.
“Regardless of what motivates an individual to relocate upon retirement, financial considerations need to be addressed and considered a priority,” said Tina Di Vito, head, BMO Retirement Institute. “Relocation can be the cause of many new or additional expenses, including increased travel to see loved ones, and an elevated cost of living due to higher health costs and taxes.”
The report brought to light that although Canadians often talk about relocating overseas to spend their retired life that is not what happens in reality. In fact, Canadians prefer to stay close to home, with only five per cent planning to relocate to the United States, two per cent to Europe and one per cent to Mexico, South America and Asia respectively.
The study also examined the factors motivating Boomers to relocate upon retirement and found some of the key drivers include weather (57%), financial reasons (54%), proximity to family and friends (45%) and better access to healthcare/support services (35%).
For those planning to remain in Canada, Victoria, B.C. remains the retirement capital of the country with 15% of boomers indicating they would like to retire there. Residents of Alberta, Manitoba and Saskatchewan are most likely to relocate for retirement. Respondents from Alberta were found to be most likely to relocate (61%) while those of Atlantic Canada were least likely (37%), the study noted.
Di Vito offers some tips for those considering relocating upon retirement: