Introduction
Are you planning to retire outside of Canada? Or maybe you have thought about it and are curious to know how it affects your CPP, OAS, or even the GIS. Well, you’re in the right place. We’re going to be talking about that today.
Canada Pension Plan (CPP)
The Canada Pension Plan (CPP) is a benefit that you pay into. Because you contribute to the plan, you can generally receive benefits regardless of where you live. As long as you have contributed to the plan, you will receive your benefits. Nonetheless, you will need to provide Service Canada with your foreign address and banking information to ensure payments are sent to the right account overseas.
Old Age Security (OAS)
OAS is not as simple as CPP. If you watched my other video, you will know you could qualify to receive OAS payments with as little as 10 years of living in Canada after age 18. This is a social program based on residency, not contributions.
To qualify for OAS payments while living abroad, you must have lived in Canada for at least 20 years after the age of 18. If you do not meet the 20-year residency requirement, you may still qualify for OAS if Canada has a social security agreement with the country you’re moving to. The country you’re moving to is important because the treaty with that country will determine many things.
If you do not qualify to receive your OAS pension while outside of Canada, your payments will stop. Specifically, if you’re out of the country for more than six months after the month you’ve left, then the payments will stop. Once you’ve returned and notified Service Canada, your payments will resume.
Clawback and Recovery Tax
You might be wondering about the clawback or recovery tax, which applies to individuals once they reach a certain income threshold. It also applies to non-residents unless limited or exempted by a tax treaty. Depending on where you are, there may be circumstances where you earn income above that threshold and do not pay the recovery tax. This is why you need to research before moving.
Non-resident seniors receiving OAS payments must file an OASRI (Old Age Security Return of Income). This ensures that the government knows your worldwide income.
Guaranteed Income Supplement (GIS)
The Guaranteed Income Supplement (GIS) and Allowance are based on residency and income. They are generally not payable if you live outside of Canada for more than six months. While there’s some flexibility with OAS, GIS payments are more restrictive. Once you’ve been outside of Canada for more than six months, you will not receive GIS.
Recommendations
My big recommendation is to do your research. Look at the country you’re moving to, examine the treaty, and understand what’s in place. This affects not only your clawback but also your withholding tax. If no treaty is in place, you will pay withholding tax, which may be significant depending on your retirement plans.
Take your time and thoroughly research your destination. Consider the cost of living and how far your funds will go. From a benefits standpoint for CPP, OAS, and GIS, taking the time to do the research is crucial.
Conclusion
I hope this information was helpful. If you have any questions, you can also reach out to me.
Hi,
My husband and I are going to Moldova for about 10 months to be missionaries. Both of us are receiving CPP and OAS. Will it be stopped by the government of Canada?
Thank you so much,
Ambrocia
Your CPP should not be affected. However, to qualify for OAS payments while living abroad, you must have lived in Canada for at least 20 years after the age of 18. If you do not meet the 20-year residency requirement, you may still qualify for OAS if Canada has a social security agreement with the country you’re moving to. The country you are relocating to is important, as the treaty with that country will determine various factors.
Very good explanation indeed.
I live in The Philippines, have a 10 year old daughter. Have my permanent residence here in the Philippines since 2019. Still have a residence in Canada but I am back and forth sometimes for years(covid could not travel 2 years 8 months) . I applied for CPP disability and am still waiting as they have a treaty here with them. Im 61, on low CPP monthly now and working under 7,000.00 a year. I was born in Alberta, left to start a new life in 2013. Can I get any benefits? I’m still waiting over 1.5 years on CPP Post 65 disability pension. I’m not sure I will get that. I spent 10 months in 2023 getting tests and documents together to apply. Any information is appreciated. Thanks
I’m sorry to hear about the challenges you’re facing. Navigating benefits can be complex, especially when residing outside of Canada. Here’s some information that may assist you:
Canada Pension Plan (CPP) Disability Benefits:
Processing Time: Typically, Service Canada aims to process CPP disability applications within 120 days (approximately 4 months) after receiving a complete application, including all necessary medical documentation. However, delays can occur due to various factors, such as the need for additional information or high application volumes.
CANADA.CA
Current Waiting Period: Given that you’ve been waiting for over 1.5 years, it’s advisable to contact Service Canada to inquire about the status of your application. You can reach them at 1-800-277-9914 or through your My Service Canada Account.
I am living in Vietnam, but go back to Canada every 5 months and 29 days like clockwork. I stay anywhere from 2 to 6 months in Canada. Do I still qualify for OAS and GIS when I’m only back for 2 months. I do maintain a residence and file taxes?
Your eligibility for Old Age Security (OAS) and the Guaranteed Income Supplement (GIS) depends on several factors, including your residency status and how much time you spend outside of Canada.
OAS Eligibility & Residency
To qualify for OAS, you must meet the following residency conditions:
Minimum Residency Requirement:
You need to have lived in Canada for at least 10 years after turning 18 to qualify for partial OAS and 40 years after turning 18 to receive the full amount.
Absence from Canada: If you have lived in Canada for at least 20 years after turning 18, you can continue receiving OAS payments while living abroad.
Returning to Canada: There is no requirement that you must stay in Canada for a certain number of months each year to receive OAS, as long as you meet the residency requirements when you first qualify.
GIS Eligibility & Residency
Unlike OAS, the Guaranteed Income Supplement (GIS) has stricter rules:
You Must Reside in Canada: GIS is only available to low-income OAS recipients who live in Canada.
Absences Over 6 Months: If you are out of Canada for more than 6 months in a calendar year, your GIS payments will stop after the 6th month.
Returning for 2 Months?: If you only return for 2 months and then leave again, you may lose GIS eligibility because you are not considered a continuous resident.
Maintaining Residency
Filing Taxes & Owning a Home: These help establish ties to Canada but do not guarantee GIS eligibility if you spend too much time outside the country.
Returning Every 5 Months and 29 Days: This pattern suggests you may not exceed the 6-month absence rule, which would allow you to keep GIS. However, if Service Canada deems your primary residence to be outside Canada, you could lose GIS.
Recommendation
If GIS is important, you may want to ensure that you are present in Canada for more than 6 months per year.
Consult Service Canada: They can provide a ruling based on your specific travel patterns and residency ties.
Hi, I have been receiving survivor income benefits for over 10 years and planning to leave canada for more than a year or two to get away from the cold weather. is that gonna affect my benefits? any info or suggestions would be greatly appreciated. thanks J
Hi J,
Yes, leaving Canada for more than a year or two may affect your CPP survivor benefits, but it depends on a few factors. Here’s what you need to know:
1. CPP Survivor Benefits and Residency
CPP benefits (including survivor benefits) are payable worldwide as long as you are eligible.
Unlike Old Age Security (OAS), CPP benefits do not require you to live in Canada to continue receiving them.
2. Tax Implications
If you become a non-resident of Canada for tax purposes, the Canada Revenue Agency (CRA) may deduct a non-resident withholding tax on your benefits.
The tax rate depends on your country of residence and whether Canada has a tax treaty with that country.
3. Updating Your Information
If you change your address, you must notify Service Canada to ensure uninterrupted payments.
You may also need to inform the CRA if your tax status changes.
4. Banking Considerations
If you move, you can receive CPP payments directly into a foreign bank account in many countries.
If not, you may need to keep a Canadian bank account for deposits and transfer funds as needed.
5. Health Coverage & Other Benefits
If you receive provincial health care benefits (like OHIP in Ontario or MSP in BC), you may lose coverage after a prolonged absence.
If you receive GIS (Guaranteed Income Supplement), leaving Canada for more than six months will stop those payments. However, this does not apply to CPP survivor benefits.
Suggestions for You
✅ Confirm your tax residency status with CRA before leaving.
✅ Set up direct deposit in a foreign bank (if available) or maintain a Canadian account.
✅ Notify Service Canada about your move to avoid any payment disruptions.
✅ Check tax treaties to see if you’ll owe non-resident tax on your benefits.
We are Canadian citizens, living almost 25 yrs in Canada and plan to retire in South Africa where most of our family are. We want to know if we will be save not loosing any GIS when doing so. Thanks for your help.
When retiring outside of Canada, such as in South Africa, there are specific rules regarding the Guaranteed Income Supplement (GIS) that you need to consider:
Key GIS Eligibility Points for Canadians Living Abroad:
GIS Payments Stop When Living Abroad:
The GIS is only available to OAS pensioners residing in Canada. If you leave Canada for more than 6 consecutive months, your GIS payments will stop.
Payments resume if you return to live in Canada.
Old Age Security (OAS) Considerations:
Unlike GIS, the OAS pension may still be paid outside of Canada if:
You lived in Canada for at least 20 years after age 18 before leaving.
Or you have a social security agreement with the country you are moving to. I don’t believe Canada has such an agreement with South Africa.
Since you have lived in Canada for almost 25 years, you would qualify to continue receiving OAS payments while living in South Africa.
GIS vs. OAS Abroad:
OAS: Likely to continue given your residency history.
GIS: Will not continue if you live outside Canada for more than six months.
Possible Strategies:
Maintain Canadian Residency: If feasible, maintaining ties and residency in Canada might allow continued GIS payments, but this can be complex if you plan full retirement in South Africa.
Plan Income Sources Accordingly: Since GIS is income-tested, explore alternative income strategies that do not rely on GIS.
Do I need to file a Canadian tax return if I live in Germany and only receive CPP and OAS? or just the OASRI (Old Age Security Return of Income).
If you are living in Germany and only receive Canada Pension Plan (CPP) and Old Age Security (OAS) benefits, your Canadian tax filing obligations depend on your residency status for tax purposes and any tax treaty provisions between Canada and Germany.
1. Filing Requirements Based on Residency Status:
Non-Resident for Tax Purposes:
If you are considered a non-resident, you generally do not need to file a regular Canadian income tax return (T1) if your only Canadian-source income is from CPP and OAS.
However, OAS benefits may require the filing of an OAS Return of Income (OASRI) if you are subject to the OAS clawback based on your worldwide income.
CPP and OAS payments to non-residents are subject to non-resident withholding tax at a rate specified by the Canada-Germany Tax Treaty (typically 15% for pensions, including CPP and OAS).
Resident for Tax Purposes:
If you are considered a resident of Canada for tax purposes (e.g., significant residential ties remain in Canada), you would be required to file a T1 return reporting worldwide income, including CPP and OAS.