For many retiring Canadians, living outside of the country either full-time or part-time can be an attractive option. Whether choosing to winter in a warmer climate, or altogether moving to a different country, you need to be aware of the financial issues surrounding these decisions. Canadians can reside in another country without having to give up their Canadian citizenship; however you will still be subject to Canadian taxation laws. It's important to understand the taxation and financial regulations of either living abroad.

There are many things to consider when deciding where to spend your retirement years. If you are planning on living outside of Canada, you should do some research on the country where you plan on moving to. You will need to research that particular country's immigration regulations, as these vary greatly depending on the country chosen. You should also familiarize yourself with that country's laws, as well as political climate. Realize that countries you've enjoyed vacationing in may not offer the type of lifestyle you are accustomed to when it comes to actually residing there.

Financial and taxation issues are very important as well when contemplating to live outside of Canada. Some developing countries may seem to offer a lower cost of living; however many lack the resources to collect taxes on foreign sourced income, and instead will impose high consumption taxes and/or import duties. Especially for those who will be living on a fixed income and/or budget, you will need to thoroughly understand the financial implications of the country you are considering. You should also factor in the costs of traveling back to Canada as well as items such as larger phone bills to maintain contact with your friends/family.

Another major financial consideration will be health care and insurance. As Canada offers a very high standard of medical care, some countries may be considered inadequate by our terms. If you have specific health problems, i.e. diabetes, heart condition, you will need to ensure that your country of choice has medical facilities as well as physicians that are capable of giving you quality care. You will also need to obtain full health coverage as you will no longer be entitled to your Canadian provincial health care benefits.  Be aware that even if you have supplemental health insurance (to supplement your provincial healthcare plan), this will not be enough coverage when leaving Canada. If you are planning on living abroad only part time, remember that your provincial healthcare only provides limited coverage for up to only 3 months. Your level of provincial benefits will probably not be enough to fully cover any medical expenses that you may incur; it is advisable to have your own health insurance even when leaving Canada on a temporary basis. Depending on the length of your absence from Canada, you may also have to wait for your provincial health plan to be reinstated, which will temporarily leave you without health insurance coverage.

If you are planning on leaving Canada to live in another country (either full or part time) you will need to ensure that your passport is valid, and doesn't expire while you are out of the country. You will also need to open a bank account in your new country; it is a good idea beforehand to research their banking regulations. You may also want to have a safety deposit box in order to safeguard copies of your documents, i.e. birth certificate, identification which bears your photo, etc. You should also have the numbers of the Canadian consulate on hand should you require these in an emergency. As well, have a copy of your visa (if it is required).

If you are planning on permanently residing in another country, you will need to establish a legal status there, i.e. permanent residency or citizenship status. Requirements for legal status vary greatly from country to country, but usually will be based on principles such as employment status, investment status, and/or family connections. Some countries may recognize people such as retirees with a guaranteed minimum income as potential immigrants. Many countries will require proof of guaranteed income in order to establish sufficient support for the retiree and any dependents. You will need to provide financial documentation supporting your claim that you meet these requirements; have copies of bank statements, investments, RRSP’s, etc ready in order for submission.

You can still receive your Canadian Public Pensions while living abroad, provided that you still qualify for the benefit. Old Age Security (OAS) requires that you lived in Canada for at least 20 years after the age of 18; as this benefit is subject to an income test, you will need to file an annual tax return which reports your worldwide income. Canada does impose a withholding tax on "passive" income paid to nonresidents from Canadian sources. This includes interest, dividends, RRSP income, rental income, RRIF income as well as pension income. This rate is usually 25%; but may be reduced depending on the terms of any tax treaties that exist between Canada and your new country of residence. You will also be required to file tax returns in Canada if you are still receiving income that originates in Canada, i.e. income from a business in Canada, the sale of taxable property, or any income that is earned. However, you may also be entitled to a tax refund on such items as rental income and/or pension income if your taxable income is low enough to qualify.

If you are planning on retiring and living outside of Canada, you may want to obtain advice regarding the financial and taxation issues. Do your own research about any potential countries you are interested in, either on a part or full time basis, so you can better plan ahead. Remember, the earlier you start planning, the better prepared you will be when you actually retire.

The majority of working Canadians have Employment Insurance (EI) deducted from their wages. This insurance is intended to provide temporary financial assistance to those who are unemployed and looking for work and/or upgrading their skills. EI also provides financial assistance for other reasons though; such as maternity leave, work absence due to illness, caring for a new child, as well as short-term help for those who need to care for a family member who is seriously ill with a significant risk of death.

Compassionate Care Benefits are intended to help those who are employed, but who need a short leave of absence in order to care for a relative that is gravely ill and at risk of dying within 26 weeks. People who are collecting EI at the time can also ask for this benefit. This benefit is payable up to a maximum of 6 weeks; however, it can be shared among eligible family members (i.e. 3 siblings can each claim 2 weeks to be used in succession.)

In order to be eligible for Compassionate Care benefits, you must be able to prove that your regular weekly earnings have decreased by more than 40%. As well, you must have accumulated 600 insured hours within the last 52 week period, or since the start of your last claim. This is known as the qualifying period. There is a 2 week waiting period; however if the 6 week period is shared by family members, only the first person will serve the waiting period.

EI recognizes family members as either your blood relative or a blood relative of your spouse (if common law spouse, you must have resided together for at least one year). These relatives include:

• Your child or the child of your spouse
• Your wife/husband or common-law partner
• Your parent or the parent of your spouse
• Step-parent or common-law partner of a blood parent
• Sibling or step-sibling, as well as sibling or step-sibling of your spouse
• Father or mother in law, either married or common-law
• Son or daughter in law, or your spouse's son or daughter in law
• Uncles and aunts, as well as their partner; or your spouse's uncle or aunt, or their partner
• Nephew and nieces; also a nephew or niece of your spouse
• Current or former foster parent; current or former foster parent of your spouse
• Current or former foster child as well as their partner
• Current or former ward; current or former ward of your spouse
• Current or former guardian or their partners

There is also a provision for someone who although they are not "related" they do consider you as a family member, i.e. friend or neighbor. In this case, a Compassionate Care Benefits Attestation is required from the person who is gravely ill and requesting your help. Care/support is defined as providing psychological/emotional support, arranging care through a third party, and/or directly providing or participating in care.

When applying for Compassionate Care benefits, you will be required to provide documentation proving that the ill family member is in need of care/support, as well as being at risk of dying within 26 weeks. 2 forms will be required to be submitted:

• Authorization to Release a Medical Certificate which is completed and signed by the ill relative or their legal representative
• Medical certificate for Employment Insurance Compassionate Care Benefits which is completed and signed by the ill relative's medical doctor to confirm the significant risk of death within the prescribed 26 weeks

These forms must be submitted at the same time; as well, the applicant assumes the cost of any fees charged by the doctor/legal representative. Only one Medical Certificate is required even if several family members are sharing the 6 weeks leave. If more than one is submitted, the first one submitted will determine the beginning and end of the 6 week period. Compassionate Care benefits end when either the 6 weeks have been paid up and the time period has expired, you have exhausted the maximum payable benefits allowed for your claim, or if the family member dies or no longer requires care and support. If the family member dies while you are receiving this benefit, it is your responsibility to immediately inform the administrator of your benefits in order to prevent EI overpayments.

For more information regarding eligibility as well as the complete list of requirements regarding this benefit, please visit the Service Canada website.

If you're like the majority of  Canadians, funeral planning is not a topic you wish to think about. Whether it's your own funeral, or that of a loved one, it's a subject that we all put off planning. But do you even know how much a typical funeral costs? What are your options? What about pre-paid funerals? These are all questions that do require some thought as well as financial planning, and should also factor into the amount of your life insurance coverage.

Pre-paid funerals do have certain advantages. It ensures that your wishes are specifically carried out, and takes the pressure away from your loved ones of making plans during their time of bereavement. It also removes the financial burden from your family. Pre-paying your own funeral also gives you the time to shop around for the best prices and to decide your own budget. If you do choose this option, make sure you inform your family of these arrangements, who you have pre-paid, and give someone copies of all the necessary paperwork. While pre-paid funerals are designed to give everyone involved peace of mind, there are some disadvantages to this option. For instance, there is no guarantee that the service provider you have pre-paid will still be in business at the time of your death. If you die before all the payments have been completed, the service provider may demand that your survivors pay the outstanding balance before they will honor the contract. As well, if you happen to move outside of the area that the service provider services, you run the risk of not being able to get a refund and/or transferring the services. Penalties may also be assessed for any late payments, and if you change your mind, there is a chance that you will be refunded substantially less than what you have paid in. Canadian provinces may have different regulations regarding this topic, so research what the current law is in your home province.

An alternative to a pre-paid funeral is to set up an interest bearing account that is specifically earmarked for your funeral expenses. This choice will still give you the time to decide on what type of service you would like, as well as pricing the various options you have. If you choose this type of planning however, you must keep in mind that the prices of what you have chosen will probably increase as time goes on, and plan accordingly. Once again, if you die before enough money has accrued in the earmarked account, your loved ones will be faced with either going against your wishes, or having to pay the balance themselves. As well, your loved ones must be able to quickly access the bank account, as well as be informed and able to carry out your wishes.

In order to either plan your own funeral, or plan one for a loved one, you must be aware of all your options, and what these cost. The average funeral in Canada today can range in price from $2,500 to $6,000. This price range does not include such added expenses like a burial plot, headstone, etc. Burial plots can range in prices depending on the location of the cemetery; as well not all burial plots are priced the same, some "desirable" locations within the cemetery are usually more expensive. Likewise, the size and detail of a headstone will determine the cost. The cost of a funeral will depend on what type of service you want, whether you choose burial or cremation, etc.

The 2 most common choices are funerals and memorial services. Memorial services are generally less expensive, as there is no casket, no embalming and no grave liner costs involved. A typical memorial service will cost around $2500, depending on what type of service you are planning. This does not include the cost of cremation however, which can cost anywhere from $500 up to $2000.  A memorial service is simply a service to commemorate the deceased's life; usually the body has already been cremated. Because there is no body present, there are more choices available regarding the location of the memorial service. This type of service tends to be more informal than the more traditional funeral.

Funerals have long been the most commonplace option when a loved one dies. Depending on the type of funeral planned, the cost can run from $2500 to over $7500. Although this is a more expensive alternative to a memorial service, funerals offer the advantage of the funeral home bearing most of the responsibility for the arrangements. They will arrange for the transportation of the body to the funeral home, as well as file the necessary paperwork such as the Declaration of Death. By law, Canadian funeral providers must present you with an itemized list of the prices for all the services and products that they offer. It is important to ascertain whether or not the funeral provider is what is known as an immediate disposition funeral provider; this type of provider has limited facilities and does not offer all services. Legally, a funeral provider must disclose that the facility is not allowed by law to provide full-range funeral services.

Choosing a funeral home, especially when planning the funeral for a loved one, can be difficult. If no previous arrangements have been made, and you need to acquire the services of a funeral home, asking the following questions will help you to choose the right facility:

• Can the funeral home accommodate all your needs? Do they have a chapel, visitation room, reception room, catering facilities, etc?
• Who have your friends and/or family used in the past and can recommend?
• Is the funeral home in good standing with an applicable professional association?
• How long has the funeral home been in your community? What is their professional and personal reputation?

It is important to understand what exactly a funeral home does when assisting you with a funeral. Typically, a complete funeral service requires 80 hours of work; this does vary depending on the individual needs of the family as well as any personal and/or religious requests. The majority of the funeral costs are incurred by charges for professional service, merchandise and final disposition. A qualified funeral director will be able to explain these costs, and assist you with planning a funeral that conforms to your budget.

The professional fee that is charged by the funeral home should include such services as:

• Transfer of body from place of death to the funeral home
• Obtaining the medical certificate of death and completion of government forms, registering the death and obtaining any necessary permits
• Sanitary care of the body, including embalming, restoration, and readying the body for viewing if requested. Embalming is not a legal requirement, but it may be required in instances where the body is being transported after 72 hours.
• Use of the funeral home and all necessary facilities such as: arrangement office, reception area(s), preparation room, chapel, selection room, parking, etc. This should also include the use of service vehicles (i.e. hearse).
• Transfer of the deceased to the crematorium and/or cemetery
• Complete personal supervision of all service arrangement details that precede as well as follow the services: the arrangement conference with the family, preparing and placing an obituary notice, consulting with clergy, cemetery and/or crematorium, arranging and caring for floral arrangements.

The other major expense is the merchandise, i.e. casket, urn, etc. It is important to remember that by law, a funeral home must display their lowest priced caskets and urns. They must also have a book/brochure illustrating the entire product line of caskets that they sell.

Using a reputable funeral home can make the time of bereavement much easier as they will take care of all the details for you. They can also help you make arrangements that are within your budget, as well as helping you to honor any specific requests that may have been made by the deceased.

It’s important when choosing the amount of your life insurance coverage that you incorporate the funeral expenses. You may want to consult with a funeral director in order to understand what all will be involved, and what expenses your survivors will be facing. You may also want to consult with your life insurance broker about ensuring that you have the right amount of coverage.

For many Canadian seniors, maintaining their independent residence sometimes isn't a feasible option. Health issues may make living alone a dangerous situation for some people. Children and/or caregivers of seniors who are facing this issue may be confused as to what is entailed, what level of care is needed for that individual, and what is covered by provincial insurance and what isn't.

Some seniors may be able to live in their home (at least for a period of time), provided they have In-Home Care services. Many different programs are available; some are funded by government agencies or non-profit organizations, while others are offered by for-profit private service organizations. The home care services that are typically provided include:

• Personal nursing care
• Physiotherapy and/or occupational therapy
• Speech therapy
• Counseling
• Day programs
• Friendly visiting
• Transportation
• Foot care
• Homemaking and/or home maintenance
• Information and/or referrals
• Meal programs (i.e. Meals On Wheels)
• Respite Care
• Emergency Response Service

If you think that the senior you care for may need these types of services, contact a local agency to get an assessment. Some services may be covered under Ministry of Health funding, regardless of income; as well, some may offer a subsidy for those who fall within a certain income bracket. Some however, will have to be paid for out-of-pocket if you do not have private insurance coverage.

For seniors who are no longer able to live on their own, a retirement residence may be the best solution. This can be the ideal arrangement, giving the senior the level of support and security they require while being able to maintain their independence and privacy. A retirement residence can also offer the social aspect for those seniors who are feeling lonely and isolated. Retirement residences can greatly vary in terms of what services they offer, as well as the types of accommodation they offer (i.e. single or shared rooms), as well as prices. The majority of retirement residences are privately owned and operated with no government funding, which means you and/or the resident must assume all the costs.

If you are looking into a retirement home for a loved one or someone you provide care for, it is essential that the senior is actively involved in the selection process. Some things to remember when choosing a retirement residence are:

• Make a list of all homes you plan on visiting; also make a list of questions you want to ask, so you won't forget when you are there. Keep notes on the different homes you visit.
• Ask questions not only of staff, but of the residents. Ask their perceptions of the residence, as well as what they like and dislike.
• Don't visit just once, plan another visit, but at a different time of day (i.e. go for a lunch or dinner)
• Ask to view all of the residence, not just the room and common areas. Checking the kitchen and stairwells can give you a good indication of the level of cleanliness and how often things are maintained.
• Ask if they will allow the prospective resident to actually spend a night at the residence, so that they can get a better idea of what to expect.
• Ask for a list of families who will give the facility a recommendation.
• Ask about the neighborhood, i.e. how close are such things as hospitals, churches, dentists, etc.
• Ask about the fees, i.e. is everything included in the price quoted, or will you have to pay extra for additional services, and if so, how much
• Ask how often are their rates increased, and how much notice do they provide for the increase in price

Long-Term Health Facilities (formerly known as nursing homes) are different than retirement residences. A long-term facility is needed for those seniors who have significant health issues and who require a greater deal of care. This type of care is needed for those who, because of age and/or level of disability, can no longer be properly cared for in the community. This is an ideal solution for those seniors who require care on a regular basis, but who do not require long-term hospitalization. Some long-term facilities are publicly funded, while others are not.

If you are facing the challenge of finding services for a senior in your care, you need to find out what exactly their insurance will cover. You may also want to consider the possibility of needing these services in the future, and have the right insurance that addresses this issue. Tangible offers a hybrid policy that combines life insurance with a long-term care component. If needed, a certain percentage of the policy converts into LTC insurance, if not, it simply remains as life insurance. This type of policy offers you the flexibility and security of being able to ensure that you will have the right type of coverage for whatever your needs may be.

Canadians who have RRSPs have the opportunity to withdraw up to twenty thousand dollars tax free to use as a down payment on a home. This money also does not have to be claimed as income on your tax return. This is a great opportunity for those who wish to be homeowners, but cannot afford to save for the down payment and contribute to their retirement savings.

The Federal Home Buyers Plan is available to those who qualify as "first time" homebuyers. This is defined as any Canadian who has not owned a home that they have occupied as their principal residence for a minimum of five years. You can qualify for the program at any time during the fifth calendar year since owning a home. This rule applies to both you and your spouse regarding previous home ownership. If you have owned a home within the previous five years, but your partner has not, then while you are not eligible, your partner will be. However, if you are using the homebuyers plan again, you must not have an outstanding balance on the previous Home Buyer Plan loan.

There are certain criteria that must be met in order to qualify for the HMP plan.  You must be considered a factual resident of Canada, meaning that even if you are not currently living in Canada, you are considered a Canadian resident for income tax purposes. You must also enter into a written agreement (offer of purchase) to buy or build a qualifying home. This agreement can be with the builder, contractor, realtor or private seller. It is important to know that simply obtaining a pre-approved mortgage does not satisfy this requirement. You must also intend to occupy the home as your principal place of residence within one year of buying or building your home. Certain exceptions can be made if you are unable to reside in the home, as long as your original intention was to move in within a year. As well, either you or your spouse (this includes common law spouses) cannot own the home more than 30 days before the planned withdrawal.

You must make the withdrawal request for the funds in the same year in which you wish to participate in the Home Buyers Plan. Each person (if applicable) can withdraw a maximum of twenty thousand dollars from your own RRSPs. Multiple withdrawals however, are allowed. The home that you are buying must be located in Canada, and can be either an existing home or a home under construction. This includes single detached family home, semi-detached homes, town home, mobile home, condominium unit, a share in a co-op, or an apartment.

You must begin repaying the withdrawal under the HBP starting the second year following the year in which you made the withdrawal. You make the repayments by contributing to any of your RRSPs in the year the repayment is due or within the first 60 days of the following year. However, you cannot designate sums to be considered s payments to your spouse’s (including common-law) RRSP are not considered payments, and vice-versa. As well, transferring amounts from another registered pension plan, deferred profit-sharing plan or registered retirement income fund will not be considered as a payment.