A shocking 106,000 Canadians left in 2024—and many of them weren’t just chasing sunshine. They were escaping high costs, high taxes, and the fear of outliving their retirement savings.
In this blog post, I’ll show you why so many Canadians are retiring abroad and how you can do it too. We’ll cover the top countries where you can retire for way less than in Canada, while still enjoying great healthcare, weather, and lifestyle.
And near the end, I’ll reveal the one CRA rule that could shut off your Old Age Security (OAS) if you move and don’t plan carefully.
Reality Check: Living in Canada Is Expensivev
Let’s talk numbers.
The average Canadian retiree gets about a combined $1,300–$1,500/month from CPP and OAS at age 65. That might’ve worked 30 years ago—but in 2025?
Not even close.
Rent in Toronto for a one-bedroom averages ~$2,100/month. Add $200 for utilities, $400 for groceries, and a $150 transit pass, and you’re easily over $3,000/month just to live modestly—if you don’t own a home.
CPP and OAS barely cover a third of that.
For many, retirement in Canada feels like running on a treadmill—working hard, but getting nowhere. So what are people doing?
They’re leaving.
Not for vacation—but for a better shot at retirement.
Instead of delaying retirement, clever Canadians are moving to places where their money stretches further. Where $1,300/month doesn’t mean scraping by—it means living decent.
And that’s exactly what we’re diving into next.
Using Numbeo to Estimate Costs
I use Numbeo to get a rough idea of living costs around the world.
In Toronto, a single person spends about $1,545/month without rent. Add $2,000 for a one-bedroom, and you’re looking at $3,500–$4,000/month just to live modestly.
It’s no surprise many Canadians are delaying retirement, or looking for a smarter option.
That’s where retiring abroad starts to make a lot more sense.
Snap Walkthrough – Meet Seth
Meet Seth. He retires in 2025 at age 65 with just $281,000 in net worth after tax. It’s not a fortune, but he’s hoping it’ll carry him through retirement.
He’s living in Toronto, spending about $50,000 a year, and relying on a mix of CPP and OAS—about $18,000 annually—to cover part of it. The rest? It comes from his RRSP and TFSA withdrawals.
In the first couple of years, he’s holding on. But the warning signs show up fast.
By age 70, he’s already drained his TFSA. And by age 72, he’s relying solely on RRSP withdrawals—over $46,000 a year—to keep up. Taxes are eating into it too, with effective tax rates creeping above 14%.
By age 74, he’s out of savings. And by age 76, his net worth has turned negative, which is the nightmare scenario for any retiree.
What went wrong? Seth lived modestly, but his costs were just too high for his savings to sustain. No adjustment for inflation, market returns, or unexpected costs.
This is a simplified example—but it shows how quickly even a decent nest egg can unravel in a high-cost city like Toronto.
Mexico: A Top Pick for Canadian Retirees
When Canadians dream of retiring somewhere warm, affordable, and close to home, Mexico often tops the list—and for good reason.
You get year-round sunshine in beach towns like Cancún and Puerto Vallarta, or mild spring-like weather in cities like Guadalajara. Healthcare is another major draw: private clinics are modern, affordable, and fast. I’ve even had two root canals there—better experience than back home.
Mexico also makes it relatively easy to stay long-term. The Temporary Resident Visa is well-suited for retirees, requiring either about $6,100 CAD in monthly after-tax income or $103,000 CAD in savings, depending on the consulate.
Travel-wise, it’s convenient—direct flights from most major Canadian cities make it easy to visit family or have them visit you.
Of course, there are trade-offs. Safety depends on the region, infrastructure can be hit-or-miss in smaller towns, and dealing with bureaucracy takes patience. Some Spanish helps a lot, and since public healthcare isn’t usually available to foreigners, private insurance is essential.
Still, for many Canadians, the cost savings and lifestyle make the move more than worth it.
What if Seth Retired in Cancún?
Earlier, we looked at Seth trying to retire in Toronto with $300,000 in savings, spending $50,000 a year. By age 74, he was nearly broke.
But what if he moved to Cancún instead?
According to Numbeo, a single person renting a one-bedroom there spends about $1,700 CAD per month—just over $20,000 a year. Same Seth, same savings—completely different outcome.
With lower living costs, his CPP and OAS cover most expenses, and he only makes small investment withdrawals. The result? His portfolio grows.
At 70, he has $387K. At 80, $586K. By 90? Over $900K.
This is the power of location. A simple move made the difference between running out of money and building wealth in retirement.
Portugal: Laid-Back European Living
If you dream of cobblestone streets, seaside sunsets, and sipping wine in a storybook setting, Portugal might be your retirement match.
It offers old-world charm, a slower pace, great weather, and a relatively affordable cost of living—especially for Western Europe. Winters are mild, summers sunny, and the Algarve has beach weather nearly all year. Porto and Lisbon are cooler and breezier, which many Canadians enjoy.
Healthcare is excellent. Once you’re a resident, you can access the public system, but even private care is affordable, and many expats use both.
Canadians can apply for the D7 Passive Income Visa, designed for those with steady income from sources like CPP, pensions, or investments. You’ll need about €870/month, or $1,400 CAD, to qualify.
It’s farther than Mexico, but still accessible. Lisbon and Porto offer direct flights to Toronto and Montreal.
Portugal isn’t dirt cheap—it falls somewhere between Canada and Mexico in cost.
Snap Walkthrough – Seth Retires in Portugal
Let’s say Seth picks Porto as his retirement destination. Beautiful, walkable, rich in culture, it’s definitely a more upscale choice than Cancún. But it comes with a price tag to match.
In places like Porto, you might pay around $1,300/month for rent and another $1,700 for everything else, putting you at about $3,000/month total—similar to the lower end of Canadian retirement spending.
With rent and living costs combined, Seth is now spending about $36,000 a year. He still has around $300,000 in savings, and he’s getting roughly $18,000 per year from CPP and OAS. The rest he covers by drawing down his TFSA first, then dipping into his RRSP.
At first, everything looks manageable.
But by age 75, Seth’s savings have dropped to around $199,000. By 80, he’s down to just over $100K. And by 84, the tank is empty—he’s out of money.
So what’s the takeaway?
Portugal gave Seth a better runway than Toronto, but it still wasn’t enough. He bought himself a few extra years of stability, but with $3,000/month in expenses, he couldn’t stretch his savings far enough. It’s a softer landing than in Canada, but it still ends with a hard truth: the math just doesn’t work forever.
Can Small Adjustments Save the Plan?
What if we made just a couple smart changes?
Let’s say Seth delays CPP to age 70 and starts melting down his RRSP from age 65 to 69 to cover the gap. That way, he lowers taxes early, lets CPP grow to its max, and spreads his withdrawals more evenly.
That one move alone extends his savings by another 2 years. He now runs out around age 86 instead of 84.
At this point, we’d sit down with Seth and explore some options. Maybe he works one more year. Maybe he trims spending just a little. Maybe he has a hobby where he can earn some money from. Or maybe he rethinks where he lives and how often he travels.
The point is—he’s close. And with some smart planning, close can turn into comfortable
Pro Tip: If you’re really serious about leaving Canada, check out my blog post: Leaving Canada? The 7 WORST Tax Mistakes to Avoid —it could save you thousands.
Thailand: Budget-Friendly, Big Lifestyle
Thailand continues to be one of the best-value retirement destinations for Canadians. Whether you prefer the cooler mountains of Chiang Mai, the beaches of Phuket, or the energy of Bangkok, you’ll find a well-developed expat scene, rich culture, and incredible food.
Healthcare is modern, affordable, and widely regarded as some of the best in Asia. Many doctors speak English, and private hospitals often exceed expectations—especially for the cost.
To qualify for a Retirement Visa, you’ll need to be 50 or older, and show 800,000 Thai Baht which is about $33,000 CAD in a Thai bank.
And the cost of living? In Chiang Mai, a full lifestyle including rent, food, and leisure can run $1,200 to $1,600/month. For someone like Seth, who brings in $1,500/month from CPP and OAS, this could be a perfect fit—most of his basic needs are covered, and his savings can continue to grow over time.
Paraguay: The Quiet, Tax-Free Alternative
Paraguay is flying under the radar, but we’ve been getting more and more inquiries about it at Blueprint from people who want to move there—and not just because it’s cheap. It’s the taxes.
Paraguay runs on a territorial tax system, meaning foreign income like CPP, OAS, RRIFs, or pensions isn’t taxed at all. Local income is taxed at a flat 10%. That alone makes it appealing—but it gets better.
In Asunción, you can expect to spend about $628/month on living expenses, with rent for a one-bedroom around $583. That means you’re living well on just over $1,200/month.
Paraguay also offers ways to obtain a permanent residency visa with minimal hassle.
For Seth, this could be a financial sweet spot: very low cost, tax-efficient, and simple to settle long-term.
Spain: Culture, Comfort—and a Bit More Cash
Spain delivers the European lifestyle many retirees dream of—think sunny coastlines, world-class food, and rich history. Healthcare is excellent, with affordable private insurance required for non-EU residents like Canadians.
We looked at Alicante as a benchmark. Numbeo data puts monthly living costs around $1,057, with rent for a one-bedroom in the city centre at $1,325. That brings monthly expenses to $2,400–$2,500 CAD—close to what you’d spend in parts of Canada.
To retire here, Canadians can apply for the Non-Lucrative Visa, which requires about $40,000 – 45,000 CAD/year in income. It’s a higher bar, but doable if Seth plans ahead—maybe withdraws from his RRSP earlier or delays CPP to boost income.
If Seth is willing to save for a year or two longer, Spain offers a higher-end lifestyle: strong infrastructure, great weather, and access to the rest of Europe.
This OAS Mistake Could Blow Up Your Retirement Plans
Many Canadians don’t realize you can lose your OAS payments if you retire abroad without meeting a key rule.
If you apply while living in Canada, you only need 10 years of Canadian residency after age 18 to qualify.
But if you’re living outside Canada, you need 20 years to keep receiving payments long term.
If you have between 10 and 20 years, you only get OAS for six months after leaving, unless you’re in a country with a Social Security Agreement.
Take David. He’s 67, has 15 years of Canadian residency, starts collecting OAS in Calgary, then retires to Thailand.
Six months later—his OAS stops.
Why? Thailand doesn’t have a Social Security Agreement with Canada, and David didn’t hit the 20-year mark.
Even though he qualified while in Canada, he loses the benefit abroad.
It’s a mistake we see far too often. Know the rules before you move—or risk losing income you’ve earned.
Before You Pack Your Bags…
This is just a snapshot of a few countries. If you’re eyeing another country, use Numbeo to compare costs like rent, food, and utilities.
But don’t count on CPP and OAS alone. Inflation, currency shifts, or healthcare surprises can throw off your budget—especially in developing countries. And life abroad isn’t for everyone. Distance from family, new systems, and language barriers can be tough.
A low-cost retirement can be amazing—but only if it’s backed by a solid plan.
Where you live can transform your retirement, but it also comes with tax rules and big financial decisions. That’s where we come in.
If you’re serious about retiring abroad, let’s map it out—costs, taxes, and the what-ifs—so you don’t run out of money halfway through your dream.
We can help you map out every step of your journey. Whether you’re thinking about the financial side or navigating the exit process from Canada, we’re here to guide you. Check out our exit Canada services here and start planning your smooth transition to a life abroad.
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