Retiring in Ontario: The Ultimate Guide

Whether you're a Canadian citizen, a permanent resident, or just visiting temporarily, retirement is a fresh start. After years of working, supporting your community, and raising a family, it’s your time to focus on what makes you happy. If you’re an active adult looking for a mix of city excitement, rich culture, and stunning nature, Ontario is one of the best places to retire in Canada. In this post, we’ll discover; 

What is the Cost of Living for Retirees in Ontario?

The cost of living in a retirement home in Ontario varies depending on the location, services, and amenities provided. According to CMHC’s Senior Housing Report, the average monthly cost is about $3,999. However, prices can range from as low as $2,500 to as high as $6,000 per month, depending on the level of care and comfort you choose. 

In addition to retirement home costs, retirees also have regular living expenses, such as food, transportation, healthcare, and entertainment. Retirement advisors estimate that, on average, seniors spend around $2,534 per month on these expenses, adding up to approximately $30,408 per year. Source [ CMHC’s, ]

Below are recent reports to provide insights into the cost of living for retirees in Ontario in 2024:

1. Healthcare of Ontario Pension Plan (HOOPP) 2024 Canadian Retirement Survey: This survey highlights that persistent high interest rates and rising living costs have significantly impacted Canadians' ability to save, threatening retirement preparedness. Notably, 26% of unretired Canadians expect to continue working during retirement to support themselves, and 49% haven't set aside any retirement savings in the past year. The survey also indicates that individuals with workplace pensions are better prepared for retirement.

   HOOPP

2. Ontario Pension Board (OPB) Cost of Living Adjustment (COLA): For retirees receiving pensions through OPB, there was a 2.7% increase in benefits starting January 2025. This adjustment aims to protect pensions against inflation, ensuring that retirees' purchasing power remains stable. For those who began receiving pensions in 2024, the increase is prorated based on the number of months the pension was received.

   OPB

3. CTV News Report on Cost-of-Living Challenges: A December 2024 report discusses how many seniors are adjusting their retirement plans due to rising living costs. Some are sacrificing their retirement plans to assist younger family members struggling with expenses, indicating a broader financial strain across generations.

   CTV News

4. Government of Canada's 2024 Fall Economic Statement: The statement provides examples of financial benefits for various household types. For a multi-generational household in Ontario, the government estimates approximately $19,500 in savings and additional benefits in 2024. This includes enhancements to Canada Student Loans and Grants, the Canadian Dental Care Plan, and the Canada Workers Benefit. While this example isn't exclusively about retirees, it offers insight into potential financial support available to households that may include retirees.

   Budget Canada

Also read Top 10 Worst Places to Retire in Ontario 

Also read; Best Provinces To Retire In Canada For Retirees

Retirement income sources for retirees in Ontario

As of February 2025, the Old Age Security (OAS) pension amounts in Ontario are as follows:

• Ages 65 to 74: Maximum monthly payment of $727.67.
• Ages 75 and older: Maximum monthly payment of $800.44.

These amounts are consistent across Canada, including Ontario. Eligibility and payment amounts are determined by the federal government and are not province-specific. The OAS pension is adjusted quarterly based on the Consumer Price Index to reflect changes in the cost of living. Notably, for the January to March 2025 quarter, there was no increase in OAS benefits due to stable cost-of-living metrics.

In addition to the basic OAS pension, low-income seniors may qualify for the Guaranteed Income Supplement (GIS). For a single individual, the maximum monthly GIS payment is $1,086.88, while for couples, it varies based on combined income and OAS eligibility.

Ontario also offers the Guaranteed Annual Income System (GAINS) to provide additional financial support to low-income seniors. The maximum monthly GAINS payment is $87 for single seniors and $174 for couples, depending on their private income levels.

It's important to note that OAS benefits are subject to a recovery tax (commonly known as the OAS clawback) if a recipient's annual net income exceeds a certain threshold. For 2024, this threshold starts at $90,997, with the OAS pension being fully clawed back at an income of $148,451 for individuals aged 65 to 74, and $154,196 for those aged 75 and over.

For the most current and detailed information, refer to the official Government of Canada resources on OAS payments.

How Does Healthcare Work for Retirees in Ontario?

In Ontario, retirees have access to a publicly funded healthcare system that provides a range of services. However, certain services, such as dental care and prescription medications, may not be fully covered. To address these gaps, the province offers specific programs and has introduced recent legislative changes aimed at enhancing healthcare support for seniors.

Ontario Seniors Dental Care Program (OSDCP): As of August 1, 2024, the OSDCP provides free dental services to eligible seniors aged 65 and over. To qualify, a single senior must have an annual income of less than $25,000, while a senior couple must have a combined annual income below $41,500. This program aims to improve access to dental care for low-income seniors.

Support for Seniors and Caregivers Act, 2024: Introduced in early 2024, this legislation focuses on enhancing dementia care and support for caregivers. The Act proposes amendments to existing laws to improve services and resources available to seniors and their caregivers, reflecting the government's commitment to addressing the challenges posed by an aging population.

Guide to Programs and Services for Seniors in Ontario: Published in November 2024, this comprehensive guide offers information on various programs and services available to seniors, including healthcare, housing, and financial assistance. It serves as a valuable resource for retirees seeking to navigate the healthcare system and access essential services.

Healthcare of Ontario Pension Plan (HOOPP): HOOPP continues to expand its membership, providing retirement security for Ontario's healthcare workers. In 2024, HOOPP welcomed 33 new employers, including hospices, mental health clinics, and community service organizations, bringing the total to over 700 employers across the province. This expansion reflects ongoing efforts to enhance retirement benefits for those who have dedicated their careers to healthcare.

Best Part-Time Jobs for Retirees in Ontario

Retirees in Ontario have plenty of part-time job options that match different skills and interests. Here are some great choices:

1. Consulting – Use your professional experience to offer advice in your field while enjoying flexible hours.
2. Event Staff – Work at sports events or concerts as security, an usher, or in concessions, letting you earn while attending events.
3. Rideshare Driver – Drive for services like Uber if you enjoy meeting new people and want to set your own schedule.
4. Pet Care Services – Earn by walking dogs or pet sitting, a perfect job for animal lovers.
5. Tutoring – Teach students in subjects you know well, either online or in person.
6. Freelancing – Use skills like writing, graphic design, or bookkeeping to take on online projects through sites like Upwork or Fiverr.
7. Retail Jobs – Work part-time in stores, helping customers and staying active.
8. Home Rentals – Rent out extra space on Airbnb for extra income with little effort.
9. Standardized Patient – Help train healthcare students by acting as a patient in medical programs.
10. Seasonal Jobs – Take on temporary roles like working at election polling stations or during holiday events.

Also read; Best Employer Pension Plans in Ontario

How Are Pensions and Retirement Income Taxed in Ontario?

In Ontario, pensions and retirement income are subject to taxation under both federal and provincial tax systems. Here's an overview of how these incomes are taxed for the 2025 tax year:

1. Federal Income Tax Rates for 2025:

• 15%: Income up to $57,375
• 20.5%: Income from $57,375.01 to $114,750
• 26%: Income from $114,750.01 to $177,882
• 29%: Income from $177,882.01 to $253,414
• 33%: Income over $253,414

These rates apply to taxable income, which includes pensions and other retirement income.

2. Ontario Provincial Income Tax Rates for 2025:

• 5.05%: Income up to $47,630
• 9.15%: Income from $47,630.01 to $95,259
• 11.16%: Income from $95,259.01 to $150,000
• 12.16%: Income from $150,000.01 to $220,000
• 13.16%: Income over $220,000

These rates are applied to taxable income after federal taxes have been calculated.

3. Canada Pension Plan (CPP) Contributions:

• Employee Contribution Rate: 5.95% on earnings up to $67,800
• Self-Employed Contribution Rate: 11.9% on earnings up to $67,800
• Basic Exemption Amount: $3,500

These contributions are mandatory for employed and self-employed individuals and are deducted from income.

4. Registered Retirement Savings Plan (RRSP):

• Contribution Limit for 2025: $32,490

Contributions to an RRSP are tax-deductible, reducing taxable income for the year.

5. Tax-Free Savings Account (TFSA):

• Annual Contribution Limit for 2025: $7,000
• Cumulative Contribution Room (for those eligible since 2009): $102,000

While contributions are not tax-deductible, withdrawals from a TFSA are tax-free.

6. Pension Income Splitting: Retirees may split eligible pension income with their spouse or common-law partner, potentially reducing the overall tax burden. This can result in tax savings if one partner is in a lower tax bracket.

7. Old Age Security (OAS) Clawback: For high-income earners, OAS benefits may be reduced through a recovery tax. The threshold for this clawback begins at a certain income level, which is adjusted annually.

It's essential for retirees in Ontario to stay informed about current tax rates and regulations, as these can change annually. Consulting with a tax professional can provide personalized advice based on individual circumstances.

Hobbies and Activities for Seniors in Ontario

Engaging in hobbies and activities is essential for seniors in Ontario to maintain physical health, mental sharpness, and social connections. Here are some popular options:

1. Creative Arts: Activities such as painting, drawing, knitting, and crafting offer therapeutic benefits and a sense of accomplishment. The Aurora Seniors Centre, for instance, provides various craft and hobby sessions, including sewing groups, creative colouring, and wood carving.

   Aurora Seniors

2. Gardening: Tending to plants allows seniors to enjoy the outdoors, engage in light physical activity, and experience the joy of nurturing life. Even those with limited space can explore container or indoor gardening.

    

3. Physical Activities: Staying active is important for overall well-being. Seniors can participate in activities like walking, swimming, or specialized fitness classes designed for older adults. Many community centers offer programs tailored to varying mobility levels.

   Ontario

4. Social Clubs and Groups: Joining clubs focused on books, games, or other interests fosters social interaction and combats loneliness. The Strangway Centre in Sarnia, for example, offers a hobby shop and various programs catering to seniors.

    

5. Lifelong Learning: Pursuing new knowledge keeps the mind sharp. Seniors can enroll in courses, attend workshops, or join discussion groups on topics of interest. Many communities have resources to support continuous learning.

   Ontario

For more localized opportunities, it's advisable to contact nearby community centers, senior associations, or municipal offices, as they often provide calendars of events and programs tailored to seniors' interests. Also read Retirement Planning Mistakes: Must Know For Everyone  

 Travel Destinations for Ontario Retirees

Ontario offers a diverse array of travel destinations that cater to retirees seeking relaxation, cultural experiences, and natural beauty. Here are some top recommendations: