In this article, we take a look at the best place to retire in BC (British Columbia) on a budget. If you wish to see our full list, please switch over to 12 Best Places to Retire in BC (British Columbia) on a Budget.
On Retiring to Canada
Concerns regarding retirement security are becoming increasingly common among Americans. Lincoln National Corporation (NYSE: LNC) reports that having enough income in retirement is the #3 ranked concern among consumers across all generations. For their Canadian counterparts, the situation isn’t any better. A survey on financial uncertainty by Primerica, Inc (NYSE: PRI) shows that retirement savings were the 4th biggest concern among Canadians, impacting 36% of respondents. Amid the rising cost of living and longer life spans, it is easy to understand why so many people are concerned about retirement savings. In a study on the Canadian retirement system, Deloitte reported that 86% of pre-retirees (aged 55-64) are at risk of running out of money during retirement. Retirement concerns in Canada have amped up during the last 5 years, as revealed in a study by the Royal Bank of Canada (NYSE: RY). According to the study, the proportion of Canadian retirees concerned about outliving their retirement has increased from 37% in 2018 to 43% as per the latest surveys.
Financial Literacy Regarding Retirement
One reason Canadians continue to struggle with retirement savings is a lack of financial literacy. According to the Royal Bank of Canada (NYSE: RY), among retirees and pre-retirees, just 53% of those surveyed said they understand how their assets and investments will work together to provide them a paycheck in retirement, while 49% understand the tax implications of withdrawals. Similarly, Primerica, Inc (NYSE: PRI) reports that 68% of Canadian families feel their education did not adequately prepare them for managing their finances in adulthood. According to Primerica, Inc (NYSE: PRI), 72% of middle-income Canadians agree that everyone should have access to a financial professional, however, not many are willing to invest in such an expense.
To make matters worse, many Canadian adults continue to disregard the need for retirement planning. According to the aforementioned study by the Royal Bank of Canada (NYSE: RY), nearly half of respondents don’t have a documented plan for retirement. A lack of financial planning can have dire consequences on retirement prospects, with the Royal Bank of Canada (NYSE: RY) highlighting that those who have a documented retirement plan are 21% more confident about maintaining their standard of living in retirement, compared to those without a documented plan. These consequences may be even more severe for women, who on average tend to receive lower benefits in retirement than men.
Implications for Women
According to data from Ontario’s Pay Equity Office, women in the country receive 83 cents in retirement income to every dollar received by a man. A lack of retirement income might be one reason Canadian women are less assured of how to manage retirement finances than men. Our article on Best States to Retire for Women in the US highlights how US women greatly lag behind men when it comes to contributions, savings, and retirement confidence in general. Similarly, in Canada, women are 11% less likely than men to say they feel in control of their finances, per Bank of Montreal (NYSE: BMO).
Accordingly, recent findings by the Bank of Montreal (NYSE: BMO) highlight how the rising cost of living and inflation have a greater impact on women in comparison to men. Per the Bank of Montreal (NYSE: BMO), the proportion of women concerned regarding the rising cost of living and inflation is 7% greater than men. For those concerned regarding retirement savings and security, one method of ensuring a comfortable retirement is to relocate to less expensive places, where inflation and housing costs do not belligerently chisel away at your nest egg. Unfortunately, this might be a difficult ask for those looking to retire in British Columbia.
Retirement in British Columbia
Currently, it is estimated that 61% of Canadians reside in either Ontario or Quebec. In comparison, the province of British Columbia is home to just under 14% of Canadians. Apart from its distance to major centers such as Ottawa, Toronto, and Montreal, one reason that British Columbia is a less popular destination to live in is its housing costs.
According to WOWA, the average home price in British Columbia is $1.0 million, in comparison to $0.9 million in Ontario and $0.5 million in Quebec. Similarly, a study by Westland Insurance in 2023 revealed that British Columbia is by far the most expensive province in Canada in terms of cost of living.
However, like any state in America, the province of British Columbia is home to a diverse range of small towns and bustling cities, meaning that with the right lens, one can find many affordable places to live in BC. With this goal in mind, join us as we set out to find the best places to retire in BC (British Columbia) on a budget. Alternatively, you may check out the best places to retire in Ontario or across Canada.
Methodology
To develop our list of best places to retire in BC (British Columbia) on a budget, we initially picked out the most recommended places to retire in BC (British Columbia) on a budget on the internet. For each place, we then developed a scorecard using metrics such as livability scores, cost of living, and median home prices. By standardizing these metrics on a linear scale, each place was scored, based on which we sorted our list in descending order. Using this methodology, we found out that Parksville is the best place to retire in BC (British Columbia) on a budget.
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Here is the Best Place to Retire in BC (British Columbia) on a Budget:
1. Parksville
Insider Monkey Score: 10.06
Livability Score: 81
Median Home Price: $719K
IM Cost of Living: 99.0
Parksville is home to a large retirement community, leading to it being dubbed as the retirement capital of British Columbia. It features many spectacular beaches towards the Strait of Georgia, whilst also being close to incredibly picturesque parks such as the Rathtrevor Beach Provincial Park. The swimming hole at Top Bridge Regional Park is a natural pool that draws visitors from all over the island and is just one of the many excursions retirees can enjoy here.
The median home price in Parksville is $719K, which is far lower than the provincial average. Moreover, the city is home to many retirement communities, meaning that even those unable to afford their own homes can find rental options in retirement homes. Furthermore, Parksville is home to the Oceanside Health Centre, meaning that retirees keen on having access to urgent medical care can be well taken care of.
Although Parksville offers the best blend of affordability and quality of living, there are other towns and cities in British Columbia that offer a less expensive cost of living and housing.
To find out, check out our free full list of 12 Best Places to Retire in BC (British Columbia) on a Budget.
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Disclosure: None. This article is originally published on Insider Monkey.
