One of the main things you need to take into consideration as you get ready for retirement is the cost of living in your preferred retirement location. Toronto is one of the most expensive cities in Canada. However, it is still affordable when it comes to the main expenses that retired people face. Below, we will look at these common expenditures.
The housing market in Toronto is competitive, and the prices are rising. As of July 2016, the average home price in the city centre is $1.3 million. For the surrounding areas, it is $900,000. And, there is no sign of the prices stabilizing. Rent prices are a bit more reasonable. As of July 2016, the average rent for a one-bedroom apartment in Toronto is $1,268. For two bedrooms, it is $1,493. And, the prices vary drastically as you move out from the city centre.
The food prices in Toronto are quite reasonable. The City of Toronto estimates that a family of four would need almost $600 per month on average to cover food costs. This is based on average prices for 66 items covering the four main food groups recommended for healthy living. As of September of 2016, the costs for some common grocery items are $2.93 for a liter of whole fat milk, $4.95 for a dozen large eggs, and $7 for a half kilo of boneless chicken breasts.
Transportation costs in Toronto are among the highest in Canada. In fact, of the major cities, Toronto has the highest public transportation costs. Of course, you will likely avoid hefty transportation expenditures if you are retired and do not have a daily commute. As of September 2016, the cost for a liter of gas is $1.04 on average. Toronto’s auto insurance rates are perhaps the highest in the country with rates averaging around $1,500 per year. This will vary based on the type of vehicle you drive, your driving history, and your driving habits.
Long-term care facilities are government-funded and provide 24-hour care. Prices range from $1700 to $2400 per month. Families need to cover care costs while their loved one waits for a spot in a facility. This can take up to a year. In Toronto, the cost of a room in a retirement home is the highest in Ontario at $45,900 on average versus $38,832 for the rest of the province. The prices for private home care in Toronto vary drastically from $500 per month to $8,000 per month depending on the level of care you need. You can contact potential caregivers to get a quote.
If you comparison shop for housing based on affordable transportation alternatives, utility rates, walkability, and pricing, you can be sure that you will get the most out of your retirement income when living in Toronto.
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