30-06-2025
‘I retired in Canada for a better quality of life – but I do miss British humour'
This is part of a series about retiring abroad: how people have done it and practical advice for anyone who is considering it.
Have you retired abroad? We'd like to hear from you – get in touch at: money@
When David Clark-Wilson visited Canada for a work trip in 1994, he never imagined he would end up retiring there.
Less than a year after his 11-day visit, he and his wife Judy, along with their daughter Charlotte, then nine, and son Oliver, seven, moved from their home in Woking, Surrey to Vancouver, on Canada's west coast.
'We wanted more space, fewer people, less congestion and less busyness,' he says. 'The schools were good, and there was a nice community. We didn't necessarily think we would stay.'
Clark-Wilson worked as a business consultant in England before buying a health and hair company in Canada, and later starting an LED lighting company.
'I was 43, had a lovely family, and the pound was double the Canadian dollar, so we rented a house in the mountains with a pool for about £2,000 a month,' he says.
Decades later, he is now 73, and has made the decision to stay put and retire in Vancouver. For Clark-Wilson, the appeal of Canada was instantly obvious: 'It's beautiful. There are mountains, trails and beaches – you can be skiing in the morning and swimming in the ocean by the afternoon.'
Having children in school made it easier to make friends, and the family quickly settled into their new life. But then tragedy struck – a year after arriving, Judy was diagnosed with pancreatic cancer and died aged 41.
'Suddenly, I was in a foreign country with two children and no family support. It was a very difficult time,' said Clark-Wilson. However, he decided it was better to stay in Canada than uproot again.
Clark-Wilson now lives in West Vancouver, with a large garden overlooking the ocean. He plays table tennis several times a week, and teaches the sport to children. He also plays cricket and is writing a novel.
'The positives of coming here are the space and natural beauty, and the weather is better than England,' he says.
Vancouver is eight hours behind England, so planning is important to keep in touch with family back home. 'You get used to speaking with people when you wake up. And my sister and I play a lot of online Scrabble together,' he says.
He travels back to England, where his son Oliver now lives, at least once a year. Every two years, he visits Australia, where his daughter Charlotte now lives.
'I do miss British humour and the sense of community in Britain,' says Clark-Wilson. 'The downsides of living here are that you are miles from anywhere, so can be quite isolated – you need to be prepared to travel.
'But the decision about where to retire was more open because my children aren't here. Will I stay in Canada forever? Who knows.'
There are an estimated 530,000 British expats living in Canada, about 133,000 of whom are retirees. So what do you need to consider if you're considering joining their ranks?
How much tax will you pay?
While it is possible to live in Canada for up to six months with a simple Electronic Travel Authorisation (eTA) – which is a requirement for most people flying to, or even just passing through, a Canadian airport – staying longer requires either a specific visa or sponsorship.
If you have family in the country, it may be possible to get sponsorship, but otherwise work-related visas are usually the best option – though this can be problematic for someone who has already retired.
Income tax is a two-tier system – the Government sets a federal rate of income tax, which is paid in addition to a rate set by each province.
The basic rate of federal income tax is 15pc, paid on earnings up to C$57,375 (£30,725), up to a top rate of 33pc paid on earnings above C$253,414 (£135,700).
As for provincial rates, residents of British Columbia, for example, which includes Vancouver, then pay a further 5.06pc on earnings up to C$49,279 (£26,390), up to a top rate of 20.5pc on earnings above C$259,829 (£139,140).
There is a reciprocal tax agreement in place between the UK and Canada, so you should not be taxed twice on the same income.
Pension problems
It is possible to move a personal pension into an overseas scheme while living abroad, but be sure to check the rules carefully. It is often best to take professional advice.
Many people opt for an international self-invested personal pension (Sipp), which is effectively the same as a UK Sipp, where your money is left invested and can be drawn down flexibly – but this allows you to do so in multiple countries and currencies.
Those who prefer an annuity can get this paid into their Canadian bank account, as long as their provider makes international payments.
James Rayburn, of expat financial advisers, Wealth Genesis, says: 'Make sure you get a nil tax (NT) code when you leave the UK to let HMRC know you are no longer a resident, or you may end up paying emergency tax on any pension income. Once you have this code, any money you receive from a UK pension source should be paid gross.'
You can claim the UK state pension in Canada but, unlike in many other countries, it will not be uprated each year. Under the triple lock, UK pensioners see their state pension payment increase annually by the highest of inflation, average wage growth or 2.5pc. Those living in certain countries, such as France and Spain, still enjoy this annual increase, but others do not.
As a result, the amount of state pension you get is frozen at the level when you first claimed it, which effectively means the benefit is worth less in real terms each year as inflation pushes up the cost of living.
Interactive Investor, the wealth manager, estimates that about 450,000 British pensioners are affected by this. It calculates that they could miss out on almost £70,000 in state pension income over a 20-year retirement, assuming the state pension increased by 3.7pc a year.
Myron Jobson, from Interactive Investor, says: 'Over time, this can seriously erode your spending power. Planning ahead is key – consider topping up any gaps in your national insurance record to maximise what you are entitled to. Deferring your state pension can boost the amount you get, though it still won't get uprated in future years.'
Plan ahead
Don't forget your other assets. Money in an Isa loses its tax protection once you move it to another country, so is best left untouched until needed, and particularly if you think you might return to the UK in the future. However, as long as you're out of the country, you won't be able to add any more funds to the account.
Assets left in the UK will continue to be liable for inheritance tax after you die, so those with property, for example, could consider selling, says Rayburn.
'Other things to consider include life insurance – check it still covers you overseas – and your will,' he says.
Some countries have forced heirship rules, which dictate where your assets go when you die. This isn't the case in Canada, but there are similar mandatory support obligations that make disinheriting a spouse or child very difficult, according to the International Bar Association.
Also bear in mind that any power of attorney you have in place may not apply in another country, so find out what the equivalent is and apply in good time.
'It can be worth taking advice, but make sure the adviser is regulated, qualified and independent, and check you understand the fees that you are paying,' adds Rayburn.
Canada has a public healthcare system, Medicare, but rather than being centrally run, each province is responsible for its own provision. As a result, the extent of cover and the standard of care can vary.
