Retirement moves

Retirement means a lot of things to different people. 

For some, it’s a time to move closer to their kids and watch the grandchildren grow. 

For others, it’s a chance to move away from the place they’ve spent most of their working lives, to start anew. 

For the majority of people, it’s a time to renew their relationship with the place where they’re already living.

There are many factors, but it often comes down to three: 

Family and friends

Economics 

Lifestyle

The combination of these factors is what motivates people to stay or go, but often there are underlying ramifications that aren’t considered when making these moves. While Canada is governed under a federal government for many things, the individual provinces have the power to influence many of the processes we take for granted in our home provinces. Often these can have a major impact on financial and legal issues surrounding retirement.

Taxes

We all pay the same schedule of federal tax, but provincial taxes vary from one province to another. While each province has their own schedule and treatment of income levels, using $50,000 in individual employment income as a base, the lowest average tax rates are found in Nunavut and NWT at 18.7% and 20.3%, followed by the Yukon at 22.2%, and Ontario at 23.2%. On the high end, Quebec provincial tax is 29.5% followed by Nova Scotia at 26.7% and PEI at 26.6%. In B.C., the average tax rate for $50,000 in income is 23.7%. 

Healthcare

While we enjoy universal healthcare in Canada, there are a number of factors that must be reviewed to get a complete picture of the differences. Basic costs are fairly similar, but as in all things, the devil is in the details. Wait-times vary not only from city to city, but province to province. The shortest wait times go to Saskatchewan and Ontario, while the longest are in the Atlantic provinces. 

Availability of healthcare professionals is another factor that varies by province. Not only the ease with which one can find a family doctor, but also the number and accessibility of specialists. Close behind is the facilities available to the professionals to care for patients. Some other factors to weigh are prescription drug coverage, home-care, and the availability of care homes. While these may not seem important when you are in the early years of retirement and still relatively healthy, they will become much more important as you get older.

Estate Planning

Wills and powers of attorney are not universal across all provinces, so if you are thinking of a move, be sure to check that your estate plan is still in force if you move. Probate fees also vary by province. The most expensive provinces to leave an estate of over one million dollars are Nova Scotia, Ontario and B.C., with the least expensive being Alberta, the Yukon and Quebec.

While these might not be mitigating factors for everybody, once you’ve worked your way through the issues of proximity to family and friends, the community you seek, and your lifestyle requirements, it’s not a bad idea to consider the financial and legal ramifications.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.