In retirement, when people’s income tends to go down and become fixed, people often seek locations where they can make their income go the furthest. However, considering the average monthly Social Security benefit is just around $1,870, it can be a serious struggle for retirees to afford a high quality of life and live comfortably in their later years.
Even retirees who have additional sources of income through employer-sponsored pension plans, 401(k) plans, IRAs or other investments — like high-dividend stocks or property rentals — sometimes struggle financially. A recent U.S. Bureau of Labor Statistics survey found that the average annual median income for people ages 65 and older is just over $60,000, or $4,616 per month. While this might seem high, it might not go as far as you think when you factor in hidden retirement costs like medical expenses, long-term care, inflation rates, hobbies and other interests.
For people who are not attached to living in the United States in retirement, there’s good news. There are many places in Canada where it’s very possible to live comfortably on a tight budget.
In fact, GOBankingRates recently assessed Numbeo’s data of Canadian cities to find the best places to live in terms of overall affordability and safety. Numbeo’s cost-of-living index compares cities’ costs to New York’s average cost of living, which is $4,650.89. That data was then used to score and rank the top 10 cities in Canada where people can afford to retire on a monthly budget of just $2,500.
10. Calgary
- Safety index: 61.5
- Cost-of-living index (with rent): 55.1
- Total monthly cost of living (with rent): $2,562.64
Calgary is in Southern Alberta, at the foot of the stunning Canadian Rockies. It is considered a relatively young Canadian city, but it is the administrative and financial headquarters of the country’s petroleum industry.
9. Halifax
- Safety index: 59.0
- Cost-of-living index (with rent): 53.4
- Total monthly cost of living (with rent): $2,483.58
The capital of Nova Scotia, Halifax is home to many lighthouses, historical sites, gardens and art galleries.
8. Kitchener
- Safety index: 58.0
- Cost-of-living index (with rent): 52.2
- Total monthly cost of living (with rent): $2,427.76
Located in Ontario, Kitchener is the biggest city in the Waterloo region. It has a vibrant cultural scene.
7. Ottawa
- Safety index: 69.4
- Cost-of-living index (with rent): 56.4
- Total monthly cost of living (with rent): $2,623.10
Ottawa, located in southeastern Ontario, is the capital of Canada.
6. Edmonton
- Safety index: 53.5
- Cost-of-living index (with rent): 49.5
- Total monthly cost of living (with rent): $2,302.19
Edmonton is the capital of Alberta, sitting alongside the North Saskatchewan River.
5. Saskatoon
- Safety index: 49.3
- Cost-of-living index (with rent): 47.0
- Total monthly cost of living (with rent): $2,185.92
Saskatoon is one of Canada’s older cities, based in south-central Saskatchewan, alongside the South Saskatchewan River.
4. Guelph
- Safety index: 65.6
- Cost-of-living index (with rent): 53.6
- Total monthly cost of living (with rent): $2,492.88
Also called The Royal City, Guelph is in the southwestern region of Ontario. It has an abundance of diverse cuisine, picturesque scenery and historic architecture.
3. Windsor
- Safety index: 54.5
- Cost-of-living index (with rent): 47.1
- Total monthly cost of living (with rent): $2,473.80
Windsor is a city in southern Ontario. It sits on the south bank of the Detroit River, just across from Detroit, Michigan.
2. Montreal
- Safety index: 67.6
- Cost-of-living index (with rent): 49
- Total monthly cost of living (with rent): $2,278.94
Montreal, located in Quebec, is one of the most populated cities in North America. It’s a vibrant, bustling city with a surprisingly low cost of living.
1. Quebec City
- Safety index: 77.8
- Cost-of-living index (with rent): 47.5
- Total monthly cost of living (with rent): $2,171.55
Topping this list in terms of both affordability and safety is Quebec City, the capital of Canada’s province of Quebec. This city is home to such world-famous attractions as the Château Frontenac.
Jordan Rosenfeld contributed to the reporting for this article.
Methodology: For this study, GOBankingRates analyzed cities across Canada to find the best places to retire on a budget of $2,500 a month. First, GOBankingRates found the cost-of-living indexes for Canadian cities as sourced from Numbeo Cost of Living. For each city, the safety and crime indexes were also sourced from Numbeo’s Safety and Crime Indexes. Numbeo’s cost-of-living indexes compare a city’s cost to New York, New York’s average cost of living. The average cost of living for New York, NY is $4,650.89. The estimated cost of living was found by estimating the following criteria; one person in the household, eat at a restaurant 20% of the time, when eating out choose an inexpensive restaurant 70% of the time, don’t drink coffee outside the home, going out three times per month, does not smoke cigarettes, low alcoholic beverage consumption, eat western style food at home, don’t drive a car, don’t take a taxi, a monthly public transportation ticket, sports membership for one person, no vacation travels, buying clothes and shoes at a low rate, have no children at home, and rent a one-bedroom apartment outside the city center. Canadian cities are compared to New York, NY with their cost-of-living indexes. All cities above $2,500 a month were removed for this study. The remaining cities were sorted by their overall safety index as they represent the best places to retire in Canada on a budget of $2,500 a month. All data was collected on and is up to date as of August 5th, 2024.