What important considerations for planning to spend twilight years in Canada?
Jun 11th 2012, 12:20 am
#61
Grumpy Know-it-all
Joined: Jul 2010
Location: Calgary, Alberta
Posts: 8,928
Re: What important considerations for planning to spend twilight years in Canada?
You may pay more tax but the final price differential is minimal, if different at all at the macro level.
The NHS covers all drug costs for a person over 65 (or 60, i forget) anyway. Plus my mum get heating subsidy, free public transport, and pays 150 quid in car insurance including breakdown coverage forher Nissan Micra. You don't get that in AB
The NHS covers all drug costs for a person over 65 (or 60, i forget) anyway. Plus my mum get heating subsidy, free public transport, and pays 150 quid in car insurance including breakdown coverage forher Nissan Micra. You don't get that in AB
Car registration fee here is only $70 pa for example. GST is 5%, and it works the same way as VAT in the UK which is 20%. No TV licensing. Fuel taxes are much less.
Also at higher income levels income taxes are much less in Canada and the personal allowance is roughly the same. The maximum rate in Alberta is 39% and that doesn't kick in until you get to $132,000 of income, whereas in the UK at around $55,000 you get to the 40% bracket.
Capital gains taxes are lower also.
Obviously if you are a retiree your income may be quite low, and obviously the lower your income the less of an advantage there is in total money terms. In which case you should live in BC, which has lower income taxes than Alberta does on low incomes.
And Alberta does have various programmes to help seniors: http://www.seniors.alberta.ca/media_...iors_programs/
Jun 11th 2012, 1:57 am
#62
Banned
Joined: Jul 2011
Posts: 1,088
Re: What important considerations for planning to spend twilight years in Canada?
Jun 11th 2012, 1:59 am
#63
Banned
Joined: Jul 2011
Posts: 1,088
Re: What important considerations for planning to spend twilight years in Canada?
Federal and provincial jobs are where it's at if you can get it. In our line of work, you can bump your pension to 70% max and if you are still young enough to carry on, then you can double-dip
Our son got sick during a road trip to Chicago in 2009, and we were in and out of the Hospital just shy of 1hr, thanks to the coverage.
Our son got sick during a road trip to Chicago in 2009, and we were in and out of the Hospital just shy of 1hr, thanks to the coverage.
Jun 11th 2012, 5:59 am
#64
Beep
Joined: Jan 2009
Location: Here
Posts: 8,311
Re: What important considerations for planning to spend twilight years in Canada?
Depends on your income level as a retiree. For example in the UK if you were retired and your income was £15,000 a year, you would be in the 20% bracket in the UK, 25% in Alberta and 20.06% in BC. But indirect taxes in Alberta are far lower.
Car registration fee here is only $70 pa for example. GST is 5%, and it works the same way as VAT in the UK which is 20%. No TV licensing. Fuel taxes are much less.
Also at higher income levels income taxes are much less in Canada and the personal allowance is roughly the same. The maximum rate in Alberta is 39% and that doesn't kick in until you get to $132,000 of income, whereas in the UK at around $55,000 you get to the 40% bracket.
Capital gains taxes are lower also.
Obviously if you are a retiree your income may be quite low, and obviously the lower your income the less of an advantage there is in total money terms. In which case you should live in BC, which has lower income taxes than Alberta does on low incomes.
And Alberta does have various programmes to help seniors: http://www.seniors.alberta.ca/media_...iors_programs/
Car registration fee here is only $70 pa for example. GST is 5%, and it works the same way as VAT in the UK which is 20%. No TV licensing. Fuel taxes are much less.
Also at higher income levels income taxes are much less in Canada and the personal allowance is roughly the same. The maximum rate in Alberta is 39% and that doesn't kick in until you get to $132,000 of income, whereas in the UK at around $55,000 you get to the 40% bracket.
Capital gains taxes are lower also.
Obviously if you are a retiree your income may be quite low, and obviously the lower your income the less of an advantage there is in total money terms. In which case you should live in BC, which has lower income taxes than Alberta does on low incomes.
And Alberta does have various programmes to help seniors: http://www.seniors.alberta.ca/media_...iors_programs/
See post #37
Jun 11th 2012, 1:02 pm
#65
Lost in BE Cyberspace
Joined: Nov 2011
Location: Somewhere between Vancouver & St Johns
Posts: 19,849
Re: What important considerations for planning to spend twilight years in Canada?
Are you going at the 50% rate or doing the full 70% bit? The Feds are stalling on letting us have the 25 year deal no penalty you guys and Corrections have. I know its a different job but we do have the same Minister in the PSC portfolio. Firearms recerts and CDT recerts dont look appealing once you reach your 50s
Jun 11th 2012, 6:26 pm
#66
Banned
Joined: Jul 2011
Posts: 1,088
Re: What important considerations for planning to spend twilight years in Canada?
Probably already making enquiries with the BC Liquor commission or ICBC
Are you going at the 50% rate or doing the full 70% bit? The Feds are stalling on letting us have the 25 year deal no penalty you guys and Corrections have. I know its a different job but we do have the same Minister in the PSC portfolio. Firearms recerts and CDT recerts dont look appealing once you reach your 50s
Are you going at the 50% rate or doing the full 70% bit? The Feds are stalling on letting us have the 25 year deal no penalty you guys and Corrections have. I know its a different job but we do have the same Minister in the PSC portfolio. Firearms recerts and CDT recerts dont look appealing once you reach your 50s
Did you lose the federal severance package...we just did, or rather it was grandfathered.
Jun 13th 2012, 5:09 am
#67
Just Joined
Joined: Mar 2011
Location: Kelowna BC
Posts: 18
Re: What important considerations for planning to spend twilight years in Canada?
I can give any retirees in The OK valley a great deal on walk in baths 
Pm me
Pm me
Jun 13th 2012, 4:47 pm
#68
Curiously Wise
Joined: Aug 2004
Location: SW Calgary
Posts: 942
Re: What important considerations for planning to spend twilight years in Canada?
LOL When we moved to Canada from England my only child (son) was 29 and everyone said "how can you leave him... he will be having children soon and you'll miss seeing them ... etc etc". Three years after we moved to Canada he moved to a small town in Austria, quickest means of travel to get to him from UK is six hours!! Looks like he is going to be there for some time before relocating to US.
J
J
Jun 14th 2012, 10:16 pm
#69
Grumpy Know-it-all
Joined: Jul 2010
Location: Calgary, Alberta
Posts: 8,928
Re: What important considerations for planning to spend twilight years in Canada?
But it's not the same, that's the point I was making. The higher your income the better off you are in Canada. If you've got investments making money you will be better off here.
Jun 14th 2012, 11:42 pm
#70
Beep
Joined: Jan 2009
Location: Here
Posts: 8,311
Re: What important considerations for planning to spend twilight years in Canada?
In real every day terms, other than the weather and potential distance from friends and family, it's no different.
Jun 15th 2012, 1:09 am
#71
Grumpy Know-it-all
Joined: Jul 2010
Location: Calgary, Alberta
Posts: 8,928
Re: What important considerations for planning to spend twilight years in Canada?
If you have a higher income you will be better off in Canada because the taxes are lower on higher incomes, that is a real difference. We're not talking super high incomes either, we're talking in excess of $55,000, roughly, although you'd have to be higher than that to actually notice it, I dare say. And indirect taxes are lower as well.
If you're on the old UK pension scheme with the additional contributions that you used to be able to make (and you made them), in Canadian dollars you're getting roughly $22,000 a year just from your state pension, so you've only got to be making $33,000+ from other sources as far as income taxes go to be better off.
I can't really remember how private UK pension schemes work, but if it's income tax deferred then you're better off paying Canadian taxes on the withdrawals.
If you're on the old UK pension scheme with the additional contributions that you used to be able to make (and you made them), in Canadian dollars you're getting roughly $22,000 a year just from your state pension, so you've only got to be making $33,000+ from other sources as far as income taxes go to be better off.
I can't really remember how private UK pension schemes work, but if it's income tax deferred then you're better off paying Canadian taxes on the withdrawals.
Jun 15th 2012, 1:15 am
#72
Lost in BE Cyberspace
Joined: Nov 2011
Location: Somewhere between Vancouver & St Johns
Posts: 19,849
Re: What important considerations for planning to spend twilight years in Canada?
They want our bargaining group to give up the severance but most are not in favour. Id be willing to give it up for the 25 yr no penalty retirement at 50%. Still a year without a contract whats another year and trying to bargain with CBSA management is like pulling teeth at the moment.
Jun 15th 2012, 2:26 am
#73
Beep
Joined: Jan 2009
Location: Here
Posts: 8,311
Re: What important considerations for planning to spend twilight years in Canada?
If you have a higher income you will be better off in Canada because the taxes are lower on higher incomes, that is a real difference. We're not talking super high incomes either, we're talking in excess of $55,000, roughly, although you'd have to be higher than that to actually notice it, I dare say. And indirect taxes are lower as well.
If you're on the old UK pension scheme with the additional contributions that you used to be able to make (and you made them), in Canadian dollars you're getting roughly $22,000 a year just from your state pension, so you've only got to be making $33,000+ from other sources as far as income taxes go to be better off.
I can't really remember how private UK pension schemes work, but if it's income tax deferred then you're better off paying Canadian taxes on the withdrawals.
If you're on the old UK pension scheme with the additional contributions that you used to be able to make (and you made them), in Canadian dollars you're getting roughly $22,000 a year just from your state pension, so you've only got to be making $33,000+ from other sources as far as income taxes go to be better off.
I can't really remember how private UK pension schemes work, but if it's income tax deferred then you're better off paying Canadian taxes on the withdrawals.
But you're still not grasping what I'm saying. For the most, daily life will not be impacted. Other than weather and proximity to family, it'll not be much different.
Edit: just noticed the thread about pension lump sum AFTER becoming a resident of Canada. Sounds costly.
Last edited by el_richo; Jun 15th 2012 at 3:03 am.
