Many Canadians living in the U.S. don’t wait too long to retire because they failed to save.
They wait because cross-border retirement feels complicated.
You may have retirement accounts in two countries, government benefits from two countries, and tax rules from two countries. That can make it hard to answer one of the biggest retirement questions:
Can I really afford to stop working?
In this video, we discuss why many Canadians in the U.S. delay retirement longer than they may need to, including:
× How to turn RRSPs, IRAs, 401(k)s, CPP, OAS, Social Security, and investment accounts into a retirement income plan
× Why account withdrawal order matters
× How CPP, OAS, and Social Security decisions fit together
× How healthcare costs can affect retirement timing
× Why many traditional advisors miss the Canadian side of the plan
The goal is not to retire as early as possible.
The goal is to retire with confidence.
Watch the video here:
Need More Help?
Are you interested in working with a financial planner specializing in cross-border financial planning? Schedule a complimentary meeting below, and let’s simplify your cross-border financial plan.
Summary
Quick recap
Bryan Haggard, a certified financial planner and chartered financial analyst specializing in cross-border retirement planning for Canadians living in the U.S., discussed why many Canadians in the U.S. delay retirement longer than necessary. Bryan identified five main reasons for this delay: uncertainty about the total retirement income from multiple sources including CPP, OAS, Social Security, and various retirement accounts; confusion about optimal timing for benefit claims; uncertainty about which retirement accounts to withdraw funds from first; concerns about healthcare costs before Medicare eligibility at age 65; and working with advisors who don’t fully understand the Canadian side of the retirement picture. Bryan emphasized that many Canadians could have retired years earlier if they had clarity about their cross-border retirement income and worked with advisors who understand both U.S. and Canadian retirement systems.
Cross-Border Retirement Planning Challenges
Bryan discussed how many Canadians living in the U.S. often delay retirement due to uncertainty about cross-border financial planning complexities. He explained that while these Canadians may have accumulated various retirement accounts, including 401(k)s, IRAs, and RRSPs, as well as multiple government benefits, the question of whether they can afford to retire is more complicated than for average retirees. Bryan introduced himself as a certified financial planner specializing in helping Canadians living in the U.S. navigate complex retirement decisions.
Canadian Retirement Income Complexity
Bryan explained that most Canadians living in the U.S. delay retirement because they don’t know what their retirement income will look like due to the complexity of coordinating multiple income sources from both countries. He noted that individuals who have worked in both the U.S. and Canada might have six different income streams, including CPP, OAS, Social Security, pensions, and various retirement accounts, making it difficult for financial advisors to manage. Bryan shared that many clients only discover how much they could receive from these sources after creating a retirement plan, which often encourages them to retire earlier than expected.
Retirement Benefits Decision Factors
Bryan discussed the common reasons people delay retirement, particularly those who have worked in both the US and Canada. He explained that many individuals are nervous about making the wrong decision regarding their Canada Pension Plan, Old Age Security benefits, and Social Security benefits. Bryan emphasized that while delaying all benefits until age 70 can maximize monthly income, it may not be the best approach for everyone’s retirement situation.
Cross-Border Retirement Account Planning
Bryan explained that many Canadians living in the US delay retirement due to confusion about which accounts to use first, particularly when they have multiple savings accounts on both sides of the border, including large RRSPs, 401Ks, and IRAs. He emphasized that it’s important for clients to start taking withdrawals from their retirement accounts, using the saying “if you don’t spend your money, somebody else is.” Bryan highlighted the need to determine not just how much can be withdrawn, but also from which accounts, to minimize taxes both in the short term and long term while maximizing retirement benefits.
Healthcare Costs and Retirement Planning
Bryan discussed how healthcare costs are a common reason people delay retirement, particularly before age 65 when Medicare eligibility begins. He explained that health insurance can cost $10,000 or more annually for individuals and over $20,000 for families during this period, but emphasized that retirement is still possible with these expenses. Bryan suggested ways to mitigate healthcare costs, including COBRA coverage and ACA credits, and concluded that high medical expenses should not be the sole reason for postponing retirement.
Cross-Border Retirement Planning Challenges
Bryan explained that many Canadians delay retirement because their financial advisors don’t understand the Canadian side of their financial situation. He noted that incomplete plans often miss important income sources and withdrawals from Canadian retirement accounts, leading to unrealistic expectations about retirement income. Bryan recommended working with a financial advisor who understands both US and Canadian aspects of retirement planning, and offered a cross-border retirement benefits calculator and complimentary consultation as next steps.