There are many motives when deciding to move to another country – and it should be this way. Moving to another country is huge step, which means loads and loads of research should be done before hand to make sure the move you’re making is the right one for you. Among the long list of things to consider should be economy. A countries economy is everything once you get settled down. Finding a house on the market, a job with a good retirement plan, etc., these are all very important things you need to consider before you make that official move.
A lot of people choose to move to Canada to retire because of the general consensus is that the pension rates are among the best in the world. If you’re coming from the United States, then yes, they probably are a lot better. Many Canadians like the pension plans because there seems to be less bells-and-whistles and it’s overall a lot simpler to get set up with a good pension plan that you can follow along with. Many consumers will sign their name without doing any prior research and/or understanding everything that they’re getting into. Pension plans differ greatly so it’s very important to know the ins-and-outs of the plan you are signing up for.
For instance, in the United Kingdom, most people will get about 5.8 percent. This isn’t too bad, but they are forced to use a large majority of their accumulated savings to produce an income. This sounds scary on paper, but if you do the research you’ll find that this is actually a great system – among the best in the world.
In Canada, the annuity rates are better than British rates as you can get up to around 6.7 percent and maybe, if you’re lucky, up around 7. Canada is notoriously known for having great annuity rates which is again why lots of people choose to retire in Canada. However, if you’re moving from the US to Canada, you must be aware of how to convert your 401k or Roth IRA to a Canadian Registered Retirement Savings Plan (RRSP) with out getting taxed to death! It’s important to know the different between IRAs and 401ks as well – find the best one for you!
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