As Canadians enter 2012, a report from the BMO Retirement Institute has found that Victoria, British Columbia is Canada’s hottest retirement destination for Baby boomers.

According to the study, conducted by Leger Marketing, Canadian boomers chose Victoria, as the number one spot to retire within Canada (15%).

Other top Canadian retirement destinations included: small-town Ontario (14%); Montreal and Quebec’s Eastern Townships (11%); and the Greater Toronto Area (11%).

“With its mild climate, breathtaking scenery and outdoor lifestyle, it’s no wonder that so many Canadian Boomers have chosen Victoria as the ideal place to retire,” says Tina Di Vito, head of the BMO Retirement Institute. “Additionally, a good portion of Victoria’s population is over 65 years of age and there’s a strong health care network in the region; this adds to its appeal for Canadians considering relocating upon retirement.”

The report also found that Canadian boomers prefer to stay close to home, with only a small number considering relocation outside of Canada upon retirement. The top retirement locations outside of Canada included: the United States (5%); Europe (2%); and Mexico, South America and Asia (1% respectively).

Di Vito adds that, regardless of where Canadians choose to relocate, financial considerations need to be addressed. Relocation can lead to added retirement costs, such as increased expenses, changes in taxation and additional healthcare costs.