Many people live on a fixed income during their retirement years, relying on Social Security to cover the majority of their expenses. However, considering the average monthly Social Security benefit is just $1,701.62, 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 or 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 net income for people ages 65 and older is $49,792, or $4,419 a 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.
But there is good news for those with some flexibility in where they live who are also seeking financial security during their retirement years. 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. 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. Here are the results.
10. Saskatoon
- Safety index: 50.3
- Cost of living index (with rent): 46.3
- Total monthly cost of living (with rent): $2,152.95
The biggest city in Saskatchewan, Saskatoon is located along the South Saskatchewan River. The city has long been an economic and cultural center in the province.
9. Edmonton
- Safety index: 52.8
- Cost of living index (with rent): 49.5
- Total monthly cost of living (with rent): $2,301.75
Located in Alberta on the North Saskatchewan River, Edmonton is a large city home to several UNESCO world heritage sites.
8. Windsor
- Safety index: 52.8
- Cost of living index (with rent): 49.5
- Total monthly cost of living (with rent): $2,157.60
Sometimes called the “Automotive Capital of Canada,” Windsor is located in southwestern Ontario, just north of Michigan.
7. St. Catharines
- Safety index: 54
- Cost of living index (with rent): 49.7
- Total monthly cost of living (with rent): $2,311.05
Located in Southern Ontario, St. Catharines is a large city with abundant nature and scenery.
6. Mississauga
- Safety index: 56.7
- Cost of living index (with rent): 52.7
- Total monthly cost of living (with rent): $2,450.55
Near Toronto, Mississauga rests on the shores of Lake Ontario and is home to an abundance of art, history and outdoor recreational activities.
5. Kitchener
- Safety index: 58.5
- Cost of living index (with rent): 51.4
- Total monthly cost of living (with rent): $2,390.10
Also located in Ontario, Kitchener is the biggest city in the Waterloo region. It has a vibrant cultural scene.
4. Halifax
- Safety index: 58.6
- Cost of living index (with rent): 53.2
- Total monthly cost of living (with rent): $2,473.80
The capital of Nova Scotia, Halifax is home to many lighthouses, historical sites, gardens and art galleries.
3. Guelph
- Safety index: 65.7
- Cost of living index (with rent): 53.1
- Total monthly cost of living (with rent): $2,469.15
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.
2. Montreal
- Safety index: 68.4
- Cost of living index (with rent): 49.3
- Total monthly cost of living (with rent): $2,292.45
One of the most populated cities in North America, Montreal is located in Quebec. It’s a vibrant, bustling city with a surprisingly low cost of living.
1. Quebec City
- Safety index: 82.5
- Cost of living index (with rent): 46.7
- 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.
Methodology: For this piece GOBankingRates looked at Numbeo’s mid-2023 data to find all Canadian cities that had the following factors available; (1) crime index score as sourced from Numbeo and (2) cost of living index (including rent). The cost of living index (including rent) estimates consumer goods prices, including rent, in comparison to New York City which was $4,650 per month for a single person in a one bedroom. All data was then scored and those cities with monthly expenditures under $2,500 were considered. For those qualified cities GOBankingRates ten used factor (1) for final rankings with the highest score being best. All data was collected and is up to date as of July 18, 2023.
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