Retiring to Canada From US: What's Your Real Price Tag?

When you’re planning your escape from the 9-to-5 grind, one critical question looms: how much cash do you actually need? The answer depends heavily on whether you’re staying put or making the leap across the border.

The Numbers: What Retirees Are Targeting

Americans have set their retirement sights at approximately $1.8 million, according to the 2024 Charles Schwab 401(k) Participant Study. North of the border, Canadians are eyeing CA$1.54 million (roughly $1.07 million USD), based on BMO’s 2025 Retirement Survey. That’s a significant gap—and it’s not random. Both populations share a common anxiety: will the money last?

In Canada, inflation and housing affordability are the twin demons keeping wallets tight. Over 75% of Canadians fret about depleting their nest egg, while 63% cite inflation as their primary obstacle. Americans worry differently—healthcare costs keep them up at night, pushing their required cushion higher.

Where Your Money Goes: The Cost Breakdown

Housing: The Biggest Line Item

Real estate prices tell a story. Canada’s average home runs CA$713,700 (about $498,804 USD), though Vancouver and Toronto command premiums over smaller prairie towns. South of the border, the average U.S. home value sits at $357,138—roughly 40% cheaper. However, regional variance matters enormously: low-tax states like Pennsylvania or Iowa offer better value, while coastal markets inflate costs dramatically.

The rental picture differs too. Monthly rent in the U.S. averages $2,085, while Canadian renters pay around CA$1,799 (approximately $1,256 USD)—making leasing comparatively lighter on the wallet up north.

Healthcare: Where the Real Divergence Happens

This is the crux. American retirees face Medicare’s limitations, requiring supplemental coverage averaging $7,000 to $8,951 annually depending on the plan type (ACA marketplace or employer-sponsored). Deductibles, co-pays, and long-term care create unpredictable drains on retirement accounts.

Canada’s publicly funded healthcare system operates differently. Basic medical needs are covered by taxation, with private insurance covering dental, vision, and specialized services. A 35-year-old single Canadian pays roughly CA$700 (about $488 USD) per year in private premiums—a fraction of what Americans budget.

For anyone retiring to Canada from the US, this healthcare advantage can shave hundreds of thousands off your required retirement fund.

Daily Living: Food, Transport, Essentials

Day-to-day expenses tip slightly in Canada’s favor. Living costs in Canada average $1,980 monthly per person, versus $2,498 in the U.S. (a 21% difference). Groceries, utilities, and transportation compound over 25+ years of retirement, making that percentage advantage meaningful.

The Verdict: Location Matters, But So Does Inflation

Retiring to Canada from the US presents mixed signals. Yes, healthcare savings are substantial and daily living costs lean lower. But housing affordability in many Canadian cities rivals or exceeds American prices—especially if you’re drawn to Toronto or Vancouver.

Both countries face the same inflation pressures. Many retirees in both nations are recalibrating: working part-time, delaying retirement, or cutting discretionary spending. Your personal retirement number depends less on arbitrary benchmarks and more on lifestyle choices, healthcare needs, and whether you’re staying flexible.

The math is clearer than ever: know your healthcare costs and housing commitment first—they’ll define whether you need $1 million or $3 million to sleep soundly.