How to Retire in Canada as an American (And Still Collect Social Security)

Retiring abroad used to mean tropical beaches and umbrella drinks. In 2025? For a growing number of Americans, it means heading north—toward universal healthcare, walkable cities, and the polite promise of a slower pace of life.

Canada has become an unexpected retirement favorite for U.S. citizens who want great healthcare, stable infrastructure, and cultural familiarity without being a $4,000 flight away from family. Whether you’re drawn to the coastal calm of British Columbia, the French charm of Quebec, or the big-city energy of Toronto, there’s a province to match every pace.

But here’s the thing: retiring across a border comes with paperwork—and tax obligations that don’t melt away with the snow. To make the most of your move, you’ll need to plan wisely, understand the visa routes available, and get clear on how your retirement income, Social Security, and Medicare translate on Canadian soil.

Let’s break it down.

How to move to Canada for retirement (legally)

If you’re planning to retire in Canada, here’s the first thing you need to know: Canada does not have a retirement visa. You can’t just show up with a U.S. passport, a pension, and a fondness for polite small talk and expect to stay.

But that doesn’t mean you’re out of luck. There are legal pathways to residency—you just have to be strategic about which one fits your situation.

1. Family sponsorship

If you have a close Canadian citizen or permanent resident as a family member, you may be able to apply for residency through family reunification.

This is one of the simplest paths to permanent residency—if you’ve got the right relative and they’re willing to sponsor you.

2. Start-up visa

Still running a business? You may be eligible for Canada’s Start-Up Visa program.

It’s designed for entrepreneurs launching innovative ventures with support from a designated Canadian organization. It’s not a typical retirement route, but if you’re still active in business, it’s a legitimate path.

3. Express Entry / Skilled worker programs

If you’re under retirement age (typically under 65), you may qualify through the Express Entry system.

This includes the Federal Skilled Worker Program, which uses a points-based system to assess age, education, work experience, and language skills. It’s competitive—but not impossible for younger retirees who meet the criteria.

4. Provincial investor or economic programs

Some provinces offer immigration programs for investors or financially independent individuals.

These usually require a substantial investment, proof of retirement savings, and a plan to settle in that province. Not fast. Not cheap. But viable for high-net-worth individuals willing to navigate the red tape.

5. Visitor visa (part-time retirement)

If none of the above work, you can still spend up to six months per year in Canada on a visitor visa.

This is common for snowbirds and dual-country retirees. Just be aware:

• You won’t have access to healthcare services
• You can’t work or study
• You must maintain legal residence in the USA
• This does not lead to permanent residency

It’s a seasonal solution—not a permanent one.

Why permanent residency matters

Becoming a permanent resident unlocks real benefits:

• Access to the universal healthcare system (after a short waiting period)
• Ability to open a bank account, buy real estate, and stay year-round
• Long-term eligibility for Old Age Security (OAS) and the Canada Pension Plan (CPP) (if you meet contribution/residency requirements)
• Simpler cross-border tax planning with fewer grey zones around Canadian tax

Without PR, everything—from healthcare to tax filings—gets more complicated.

What happens to Social Security benefits abroad?

If you’re eligible for Social Security, you can keep collecting it while living in Canada. The U.S. government doesn’t care where you drink your morning coffee—as long as you’ve paid into the system, the checks keep coming.

That said, moving across the border means a little extra coordination. Here’s what you need to know:

• You’ll still get paid: Social Security benefits can be deposited directly into a Canadian bank account. The payments will arrive in Canadian dollars and may fluctuate slightly with exchange rates.
• You might owe U.S. tax: The IRS can withhold taxes from your benefits depending on your total income. You can adjust this, but only if your paperwork is in order.
• You still need to file: Even if you’re living in Canada full-time, you’ll need to file a U.S. tax return every year. And if you’re considered a Canadian tax resident, you may also need to file with the Canada Revenue Agency.

Handled well, Social Security can be a steady, low-maintenance income stream that fits neatly into your bigger financial plan. But it doesn’t exist in a vacuum. It touches your tax strategy, your retirement withdrawals, and, frankly, your peace of mind. If you want to protect your income—and your time—get professional help early and coordinate across both borders.

Because nothing kills the quality of life you moved for faster than a preventable tax mess.

Medicare doesn’t apply—so what about healthcare?

Let’s get this part out of the way: Medicare stops at the border. If you’re an American retiree living in Canada, your U.S. healthcare coverage won’t follow you.

That doesn’t mean you’re left without options—but it does mean you’ll need a plan.

If you have—or plan to apply for—permanent resident status, you’ll eventually gain access to Canada’s universal healthcare system. It’s publicly funded, covers essential care, and is one of the biggest quality-of-life perks for Canadian residents.

But there’s a catch: the waiting period.

In most provinces, new residents face a delay (often up to 3 months) before they can access public healthcare. During that time, you’ll need coverage from another source.

Here’s what to consider:

• International health insurance: Designed for expats, this can bridge the gap before you’re eligible for public coverage—and may even offer additional flexibility long-term.
• Local private insurance: Some retirees opt for Canadian private plans to supplement public care or cover services not included in the basic system.
• Budget for out-of-pocket care early on: If you’re not covered during the waiting period, medical expenses—while generally lower than in the U.S.—can still add up.

Healthcare access isn’t just a comfort issue—it ties directly into your financial planning and tax considerations. If you’re relying on Medicare to stay covered, a cross-border move will force a rethink. Build these costs into your early retirement budget, especially if you’re arriving before your PR status is finalized.

Because universal healthcare is great—but only once you’re actually in the system.

Cost of living in Canada vs. the U.S.

If you’re imagining Canada as a budget-friendly retirement haven, the truth is… it depends.

Some things cost less than the U.S.—some don’t. Where you live, how you live, and what kind of healthcare coverage you need all factor in. Here’s how it breaks down:

Housing costs vary widely by province

• British Columbia (especially Vancouver) is beautiful—and brutally expensive.
• Ontario has urban options like Toronto (pricey) and smaller cities like Ottawa (more affordable, especially for retirees).
• Quebec tends to offer better value, with Montreal topping many lists for affordability, culture, and livability.

Other living expenses to consider

• Groceries and transportation are often comparable to mid-sized U.S. cities.
• Utilities and cell/internet plans may be slightly higher.
• Healthcare costs (once you’re in the public system) are lower overall—but you may need to budget for supplemental insurance or out-of-pocket care during the waiting period.

What affects affordability most

• Urban vs. rural: Smaller towns are cheaper, but may come with trade-offs in access and amenities.
• Climate: Want milder winters? Expect to pay more.
• Healthcare needs: If you have ongoing medical concerns, location and access to care can impact both quality of life and budget.

If you’re looking for a sweet spot, Montreal and Ottawa are both popular with retirees for good reason. They’re walkable, culturally rich, and relatively affordable compared to major U.S. and Canadian cities.

Taxes and retirement income: What expats need to know

Retiring in Canada doesn’t exempt you from U.S. tax obligations. If you’re a U.S. citizen, you are required to file a U.S. tax return every year—regardless of where you live.

At the same time, Canada taxes residents on their worldwide income, which includes U.S. retirement accounts, Social Security, pensions, and investment income. Without proper planning, that can lead to double taxation. Fortunately, the U.S.–Canada tax treaty provides relief—but only if you file correctly.

Key filing requirements and strategies include:

• Form 1040 (U.S. individual income tax return) must be filed annually.
• Form 8938 (Statement of Specified Foreign Financial Assets) may be required if your Canadian accounts exceed certain thresholds.
• FinCEN Form 114 (FBAR) must be filed if you have more than $10,000 in foreign accounts at any time during the year.
• Form 8833 should be filed to disclose any treaty positions you’re claiming—such as excluding Social Security from Canadian tax.
• Form 1116 (Foreign Tax Credit) can help you offset Canadian taxes paid on U.S.-sourced income.
• Form W-8BEN may be relevant for reducing withholding on U.S. income if you’re considered a Canadian resident for tax purposes.

Common tax-planning strategies include:

• Withdrawing from traditional retirement accounts before relocating to reduce taxable income once you become a Canadian tax resident.
• Roth conversions before your move, so that future withdrawals are U.S. tax-free—even if they’re not always tax-exempt in Canada.
• Timing withdrawals to align with years where your income is lower or where you can maximize treaty benefits.
• Avoiding investment products that trigger Canadian PFIC rules (e.g., U.S. mutual funds), which carry harsh tax consequences under Canadian law.

It’s also worth noting that Social Security is typically taxable only in the U.S. for residents of Canada—but only if you properly claim that position using the treaty.

For American retirees, cross-border tax compliance isn’t just a formality—it’s the foundation of sustainable retirement planning. Filing the right forms, at the right time, with the correct disclosures isn’t optional. It’s what protects your income, preserves your benefits, and prevents avoidable penalties down the line.

How much do you need to retire in Canada?

There’s no universal number that fits every retiree, but there are consistent cost categories you’ll need to account for—regardless of where you land. Retiring in Canada means managing not just everyday living expenses, but also the financial logistics of cross-border life.

At a minimum, your retirement budget should include:

• Housing: Whether renting or buying, costs vary significantly by province. Real estate in cities like Vancouver is far more expensive than in places like Montreal or Halifax.
• Healthcare coverage: If you’re not yet eligible for provincial healthcare, private insurance or international health plans are essential—and should be built into your early retirement costs.
• Travel between the U.S. and Canada: If you plan to visit family or maintain ties with the U.S., frequent travel can become a significant recurring expense.
• Taxes: Cross-border retirees must factor in U.S. and Canadian tax obligations, including the impact of withdrawals from 401(k)s, IRAs, and Roth IRAs. The U.S.–Canada tax treaty can help, but not without careful planning.
• Currency conversion: If your income sources are in U.S. dollars, fluctuations in exchange rates can meaningfully impact your monthly cash flow.

Cost of living is only one variable. How your assets are taxed, how your accounts are accessed, and how your income is converted all play a role in how far your retirement savings will actually go.

Pros and cons of retiring in Canada

Like any international move, retiring in Canada comes with advantages—and a few realities worth factoring into your long-term plans.

Pros:

• Access to universal healthcare: Once you qualify for provincial coverage, your essential medical costs are significantly lower than in the U.S.
• Strong infrastructure and cultural familiarity: Roads, public transit, utilities, and systems work. And you won’t need to learn a new language (unless you choose Montreal).
• Public safety: Canada consistently ranks among the safest countries in the world, with notably lower rates of violent crime than the U.S.

Cons:

• No dedicated retirement visa: You’ll need to qualify through other immigration pathways, which may involve business activity, family sponsorship, or economic programs.
• Higher income taxes in some provinces: Depending on your location and income level, provincial tax rates can be significantly higher than what you’re used to.
• Winters: If you’re not on the BC coast, expect snow—and a lot of it. Cold weather can affect both cost of living and quality of life depending on your health and preferences.

For many Americans, the benefits outweigh the drawbacks. But understanding these tradeoffs upfront is critical to building a sustainable, satisfying retirement plan.

Final checklist before you make the move

If you want to avoid tax surprises, healthcare gaps, or immigration headaches, early planning is essential. Here’s what to put in place before you go:

• Map out your retirement timeline: Know when you plan to stop working, when your income sources will shift, and how that aligns with immigration and tax deadlines.
• Secure health insurance for the transition period: Most provinces have a waiting period before healthcare kicks in. Make sure you’re covered until you’re eligible.
• Explore your immigration options: Your age, financial status, and family ties will determine the best path. Don’t assume temporary visas will cover long-term plans.
• Review your retirement accounts: Understand how your 401(k), IRA, Roth IRA, and Social Security benefits will be taxed in both countries. Pay close attention to timing and required minimum distributions.
• Speak with a cross-border tax and/or financial advisor: Retirement in Canada requires a coordinated plan—one that accounts for U.S. and Canadian tax systems, currency risk, and legal compliance on both sides.

The earlier you address these steps, the smoother your transition will be—and the more confident you’ll feel in your decision to retire abroad.

Ready to retire in Canada?

With reliable infrastructure, world-class healthcare, and a culture that feels familiar (but distinctly its own), Canada offers a compelling option for U.S. retirees—especially those looking for stability, safety, and a well-run system.

But while the lifestyle may be relaxed, the paperwork isn’t. Cross-border taxes, retirement account withdrawals, and dual filings can get complicated fast.

That’s where Bright!Tax comes in. We specialize in helping U.S. expats stay compliant while making the most of their retirement income abroad. If you’re planning a move to Canada, we’ll help you build a tax strategy that works—on both sides of the border—so you can focus on the life you came for. Snow boots optional.

Frequently Asked Questions