What Happens To Your CPP & OAS If You Retire Abroad?
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- เผยแพร่เมื่อ 12 มิ.ย. 2024
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When retiring abroad, there is a lot that goes into that decision. Over the next several weeks we'll look into different topics about retiring abroad. In this video, we'll go through how your CPP & OAS is affected.
If you have any further questions about this video's topic or any financial planning questions in general, I encourage you to find a certified financial planner in your area or book a consultation with us to get your savings plan on track. You can learn more about our services at www.parallelwealth.com/planning
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OUTLINE:
0:00 - Introduction
2:30 - Tax Treaties
3:20 - OAS Qualifications
6:00 - OAS Payments
6:37 - Taxes On OAS Payments
8:32 - OAS Clawback
10:57 - GIS / OAS Allowance
12:23 - CPP Intro
13:13 - Withholding Tax CPP
14:27 - CPP Survivor Benefit / Child Benefit
15:00 - Receiving Payment
16:43 - Summary
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DISCLAIMER: The videos and opinions on this channel are for informational and educational purposes only and do not constitute investment advice. Adam Bornn is not registered to provide investment advice and as such does not provide recommendations - those looking for investment advice should seek out a registered professional. Adam is not responsible for investment actions taken by viewers and his content should not be used as a basis for investment trades.
As a Canadian living abroad I really appreciated this video. It’s difficult to find information on this type of topic.
Hire a fkn CA you cheap dude.
Government never tells us real information
In case of death, how will cpp pay?
Interesting and at the same time complex question. I assume the family would get some CPP or a family member could inherit and continue receiving it. Hopefully, will get more on this subject. Thank you
Timely topic. In a year or two my wife and I will be leaving Canada to retire abroad. The economy here is going to face significant challenges in the future with rising taxes, new types of taxes and higher interest rates. Most seniors on fixed incomes are going to be in a very bad way. We're getting out to enjoy better weather, cheaper cost of living, better health care and a much better lifestyle. Canada's future is bleak indeed.
Depends on where you are going. I lived in the Philippines and Thailand. I was happy to come home after 3 years.
@@davidgiles5030 my wife and I tried Philippines, weather was great, we lived in the provinces north of Manila but you’re right, we were glad to come back to Canada too. Health care there is nasty
@@davidgiles5030 now 2021 October do you think Canada is ok to be ? Because I’m planning to go to Philippines 🇵🇭 escaping the military take over in Saskatchewan etc
@@marklundy6879 what is your thought about Canada 🇨🇦 October 2021 are you ok living in Canada or would like to go back in the Philippines 🇵🇭?
I’m looking to go away from Canada 🇨🇦 because of the pandemic military take over in Saskatchewan. Are you seeing that also
Thank you for confirming our research. That was a succinct summary of what we have learned about CPP/OAS.
Invaluable information!
You definitively have a new subscriber.
Thanks Nick. Appreciate the view and sub. Have a great weekend.
Clear and concise! Thank you!
I love these kind of videos Adam! Thanks 🙏
I am planning to retire in Europe and these information are beneficial as a starting point. Keep them coming, Sir! 😊
Fantastic content Adam, Thanks for sharing !
I live in Spain full time and I get both CPP and OAS since age 65. I worked in Canada for over 20 yrs before I moved to EU for work back in 2000. Both CPP and OAS are subject to a 15% witholding tax but tax paid in Canada is a credit against income tax payable in Spain.
Larry, thanks for sharing!
did you have to deal with both your Canadian and Spanish taxes? 2 different accountants?
How is living in Spain?
@@MsElke11 I am a fiscal resident of Sapin, not Canada. So I only fle income tax returns in Spain, based on my global income (which includes my Canadian pension and investment income). Any taxes paid in Canada n my Canadian income is a tax credit against taxes owed in Saoin since Spain and Canada have a tax teaty and there´s no double taxation between Canada and Spain.
@@MelissaKellyHerStunts I live in the canary Islands. I like it alot. Relaxed pace of life. good food and wine, and great climate. I am not fluent but have adequate Spanish and this makes a BIG difference as it would be much harder to live in Spain without any Spanish (but not impossible).
Topic is not relevant to me, but figured I’d stop by and drop you a like! I’ve been binge watching your content this past week and truly appreciate the knowledge you’re sharing with us Canadians! Thanks from Moncton NB!
Thanks for watching (and binge watching!).
thank you for your info, living on CANADA for 52 years, as a canadian we appreciate what canada offered to us
Hey Adam. I think you’ve got a winning topic here. I’m looking forward to more in depth videos on this. Cheers!
Thank you so much for the time sir
We'still secure in Canada than any other countries i have a friend in Italy and she regretted that she didn't get much retirement pay there to the fact that she had worked there for ling ,long years!
Very helpful! Trying to find information on the financial considerations on retiring overseas is so hard to find. Thanks, Adam.
Very clear explanation; also informative, and thank you.
Thank you for this very informative video. Clear and concise!!
You're very welcome!
Good presentation, thanks for the info, important to know if considering a move, for sure!
Thank you so much for all the informations.
WOW. Great information Adam. Thanks so much.
very clear explanation and helpful information. thanks.
Thank you. Very informative. I have been looking for specific information on these matters. 👏🏽🙏🏽
Thanks for this the great information Adam. Regarding getting payments from CPP/QPP and OAS, I live in Massachusetts and have been receiving QPP and OAS for about two years now. I was able to get direct deposit into my US bank account from both QPP and OAS. The amount fluctuation due to US/Canada currency fluctuations but seems to be well aligned with the foreign exchange rates. Its great, payments show up every month, no need for a Canadian bank account or making the transfers myself.
Does Canada have a Tax treaty with US ? Or how is it you can collect your OAS for past 2 yrs there ? Do you come back to Canada for a bit than go back and stay another 6 months ? Ty
Thank you. I thought that I had to come back to Canada for six months to continue getting my benefits. This really updated my knowledge and took a lot of stress off my shoulders. I will now researched the other benefits like health care.
Don't worry about the health care. Just live like the natives do, there's a medicine man in every village
@@mactravel112 I have to respectfully disagree with you on that point. I was seriously ill twice and each time i got stellar life saving care. I agree that the wait time for non-urgent procedures is way to long but otherwise our health care system is generally quite good.
Better comeback to Canada if you qualify)need substantial GIS payments.
Thanks for the update !! Will do the research on the retirement tax verses location and tax offsets are concerned . Thanks for the heads up Sir !!
Thanks for the great information on retirement abroad
excellent presentation Adam
Learn so much from this video i am from philippines planning to retired.
Thanks for this topic, considering retirement in Europe in few years
Great stuff ! Thank you!
Thank you for the informations. Very helpful. Lot of researches before make the move but sure for the best.
Great video about important subject for Canadian retirees
Thanks for this information!
Thank You 🙏
Your video is very informative ❤️❤️
Great topic, looking forward to more like this
How has Your channel not exploded because You are awesome thank you for this wonderful information PS I'm Canadian from Toronto Ontario
LOL, well it has grown and we are thankful for that!
To the point! Excellent!
Great information Thanks Adam
More of the overseas stuff pls!! Fantastic
Very informative and clearly explained. Thanks for this video.
You are welcome!
This is so informative. Thanks for sharing.
Thank you so much for the info.
I really like this channel. Really great info. , you really know your stuff. Thank you!
I appreciate that! Thanks Peter.
Wow thank you so much for all this info. New subcriber here. Very informative.
Thanks Jane! Welcome to the channel.
Wow. Thank you so much. Without the possibility to own a home and cost of living way over income I don't see a future here. I am contemplating a move overseas and confused about a lot of things... including how to do a transaction if I were interested in purchasing a home overseas.
Awesome video...I just subscribed, looking forward to more info.
Excellent video. Thank you!
Thank you for educating me on CPP & OAS
Well done. I have been looking for this info. I subscribed n liked without ado. Do more relevants.
Your content is excellent!
Thanks Brian.
Thank you for a very useful info on retiring and where to get assistance with planning for it
Well done!!
Great content and delivery. Thank you very much.
You're very welcome!
Helpful points..New subscriber here. Thanks for sharing🙂
Thanks Collin. Welcome to the channel
Beneficial information, thanks!
Planning retirement has never been this confusing! First SVB, then Signature bank and now First republic, these are all the signs of yet another 2008 market crash and recession 2.0, so my question is do I still save in the United States dollar, or could this be a good time to buy stocks? So I’m left wondering what 2023 has in store for us investors, I’ve been sitting on over $745K equity from a home sale and I’m not sure where to go from here,
@@sherryie2 true, A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for license advisors and came across someone of due diligence, helped a lot to grow my reserve notwithstanding inflation, from $275k to approx. $850k so far.
@@corrySledd Do you mind sharing info on the adviser who assisted you? been saving for pension since age 18 - company scheme. along the way I hit higher tax, so I added to my company pension with a SIPP (tax benefits) I'm 46 now and would love to grow my finance more aggressively, there are a few cars I still wish to drive, a few mega holidays, etc.
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@@corrySledd I just checked her out and I have sent her an email. I hope she gets back to me soon
Thank u Adam.. Interesting topics .
Great topic bud but I def am considering retiring abroad
Nice topic I'm watching from Italy 🇮🇹
Hello Adam,
Love your videos! You explain everything so easy and clear to understand!
I have an MSP question. I know you can be away for up to 6 months and still keep your medical coverage. So, how long do you have to stay in the province in order to keep it before being able to travel again? Is the time you need to be in Canada counted by calendar year or from the date you are away and back? Hope you understand what I want to know. Thanks you so much. Keep on the great work!
Everything I read shows that you need to be in Canada for 6 months - so not sure there is a minimum days back requirement. Sounds more like if the total days you were in Canada are more than half the year then you are fine. I would recommend reaching out to msp directly to confirm though.
In Ontario you need to be only 5 months a year. Counting in days.
According to the Canadian snowbirds
' Association...you can be out of country 7 months a year except for Quebec...if you only do 6 months a year...in BC you can call Health services and opt out of Canada for 2 years..I know people doing it now
very well presented relevant information with the supporting reference links thank you so much - one question though, in case of conversion of the OAS, CPP is the conversion applied by Canada or the local institution?
This is great information!!!
Glad it was helpful!
great video!thanks!👍👍
Thanks Chad.
Thank you so much for these useful information about oas n cpp n gsi.. .It helps a lot to me n 2 my countrymen who will be able to get in to their retirement benefits soon n plan to retire abroad . more info pls..ty
Thank you. Learning a lot. Way to go. 👍
Thanks Elizabeth
So glad to see this topic as I am very seriously considering retiring in Mexico or, at the very least, being a snowbird as I'm not sure I'd want to give up my residency.
I follow a TH-cam channel called JC Travel Stories. An American couple have retired in Mexico. It may be interesting to view if you are not already a subscriber.
@@moewilson4605 Thanks for the recommendation. I have watched few of their videos.
@@moewilson4605 I think the main difference between U.S. versus Canadian retirees when retiring out of country is that U.S. retirees keep their U.S. Medicare coverage as long as they keep making their monthly contributions. If U.S. retirees encounter a significant medical issue they can return to the U.S. for treatment under Medicare. Canadian medical coverage is based on residency and after a little over 6 months or so out of country Canadians lose their government medical coverage. Canadians can regain their medical coverage but you have to be resident back in Canada for about 3 months first and if your medical issue is urgent that's a problem. I would say this is why more Canadians (versus Americans) are snowbirds rather than moving out of Canada full-time. At least that's the case among the people I know in Mexico.
@@ddavidson5 great point about the medical
@@ddavidson5 yes you are right bout that ...I'm Cdn citizen living in the US.
Good morning thank you for the information I found it a very informative topic have a great day!
Thank you! You too!
Very informative👍
Thank you so much for your topic n it's discussed properly .maybe pls don't speak too fast so everyone will be able to understand well n be able to catch up with you . Hope you don't mind. Thank you sooooo much sir appreciate it ..GODBLESSINGS TO YOU
Thank you. An awesome video.
Glad you liked it Karim!
Very good info. Thanks
excellent video. very useful
Glad it was helpful!
Hi, great video and details! Just wanted to add that the clawback on OAS as you said is on net income but wanted to specify that it is per individual. Thx. I subscribed and liked.
Yes, based per individual.
thanks for the good advice!
Any time!
wow thanks for the info...moving to the Philippines
Excellent information. Thank you very much
Glad it was helpful!
subbed, glad I found you... thank you.
Welcome aboard!
Awesome information and thanks for sharing 🙏🙏
My pleasure
Great topic.
Great video and Thank you so much! This was exactly what I was looking for answers for years when thinking about retiriment plan.
My case is that I live in Canada for 8 years and I am a citizen for 4 years. Canada has a treaty with my mother country Serbia so that's something to consider. Since the cost of living would be much higher after I hit the pension, an obvious way out would be to return to Serbia.
My question is if I retire before age of 65, is CPP would still be applicable or not.
And Thank you again for the shared knowledge!!!
Thank you for all the information.
Hello. Please adjust the wording regarding going to a Service Canada centre (SC) for answers on exactly how much money a client will receive for CPP or OAS etc. or for other scenarios because the Client Services Officer (CSO) in any Service Canada center doesn't do any calculations. If the pension department has already placed monetary amounts in the client's profile then a CSO can inform the client of the amount(s) but no CSO does any calculations because there are many factors that need to be considered and taken into account which takes times plus the CSO will not have access to all of the client's employment history etc. A CSO is there to inform and redirect clients to where they can get individualized information plus a CSO can set up a call back to have a pension agent call the client instead of the client trying to call the pension department.
Thanks for your help 👍
No problem 👍
Excellent
The threashold for OAS is minimum 10 years in Canada and 20 years in Canada and treaty countries. Speak with Service Canada to get hopefully the latest and accurate information.
Hi Adam, you might have covered this but I can't seem to locate it. Could you please address what happens to your RRIF, if one retires and takes up residency in another country..eg. Panama. Thanks Adam
Very timely information, I retired at 55 last years and living abroad since 2020, but I lived in Canada for 31 years. Is there a treaty with Jamaica?
Thanks
thank you so much for talking about Canadians retiring abroad. I am from Thailand, married a Canadian, and live in Canada. we plan to relocate to Thailand in about 10 years (my husband does not want to, but I do not want to let the govt takes 80% of his net income (if he moves in nursing home!) I plan to retire at 65. Its very complicated as we own a house in BC and my 71-year old husband has work pensions, CPP, Old Age, investment accounts, and I, who became a Canadian citizen, will start to collect those pensions when I reach 65. We know that Canadians will lose Canada’s health care if you have lived abroad more than 6 months. For example, if we sell the house, how can we transfer the money to Thailand? will there be taxed on those money? there are so many questions that need answers. I have started my research, but yet its still complicated!!. Hope for more info regarding this topic . thank u
One thing that needs to be mentioned is that if let's say you only spent 18 years in Canada after turning 18 years of age, and lets say you spent 20 years in South Korea. Your time in South Korea would only give you the extra two years required to meet the 20 year minimum. However, you would still only receive payment for 18/40 years. So the time abroad only accounts for the application process not for increased benefits. Hope this is clear.
Thanks Wallace, appreciate the knowledge shared
Years spent in Canada since turning 18, living in another country does not count. You qualify for the full OAS benefit if you lived in Canada for 40 years and don’t make more than the threshold.
Thank you, I plan on retiring abroad and had been looking into this. I was pretty sure I knew the answer but feel better now that you’ve confirmed it. And it looks like where I want to move to won’t have that OAS clawback.
Marco, I'm a retired CDN expat living in Thailand. I am a declared non-resident and pay no income tax on my pensions. Check out Form NR5 .Another is 217. You can apply to have your withholding tax reduced or in my case changed to zero. Before that they were withholding 25% tax. Doing some homework can save you lots. My income is about 34 k
@@jaideedave I've been thinking about retiring in Thailand but I'm having a problem finding health insurance. At my age, the only policy I've been able to find is very expensive. If you have health insurance, would you mind telling me who you deal with?
@@sharonla8071 As a matter of fact I'm 71 and have just been informed that they will not be renewing my medical policy. I have a credit card with 22 k limit as my new policy.
Hi Adam, does your time in Canada a student and worker count towards your time to the OAS? Or does the clock begin when you become a permanent resident?
Thank you so much
topic on canadian expats and a N5 aplication for tax
Very interesting topic
What if I retire on an Island like Jamaica ? Where it’s warmer all year
What happens if you lived in a country that Canada has an agreement with, but you were self employed and paid taxes in that country, but didn't pay into the retirement system. Will you still be able to get OAS?
Really enjoy watching your channel. My wife and I were born and worked in England for a few years before emigrating to Calgary in 1993. We are a few years away from retirement, so have recently starting to put more firm plans in place. We both worked at big companies for 3 to 5 years in England (myself at a large bank, and my wife at a multinational manufacturing company), we've just discovered we have two defined benefit pensions with a fairly sizeable transferable balance on each. I'm reaching out to see if you know of a Canadian company that can help us with the transfer of these funds. I would assume they can be transferred to (I would assume locked in) RRSP account. We're about 10 years away from retirement age. Thank you in advance with any guidance you can offer.
Send us an email, we can get some details and get you going on this.
Assuming someone has moved abroad to a country with a tax treaty, (say the US or Mexico) is there withholding tax on RRSP's or a way to transfer them to your new country of residence without withholding tax?
Nice
Great video, I have a question on OAS. My wife an I have lived in the US for 30 years. I lived in Canada for 20 years after 18 so I am collecting OAS. My wife only has 19 years lived in Canada after 18 however I believe that she may qualify due to the US Canada totalization agreement. My wife applied for OAS over 1 year ago so we called service Canada and they told us they are still waiting on work history from the US. My wife never worked in the US so no work history. I believe the requirement is to have worked or lived in US to qualify under the Treaty. Do you have any recommendations on how to proceed? The service Canada agent said they could not do anything but wait.
Great video. One question. If you move abroad but keep oas and cpp paid into a local account, do you have to tell the Canadian Government where you are living? These days you can have a HSBC account here and in your retirement country and transfer your pension on a monthly basis between accounts with no charges.
It will be based on residency and primary tax filings.
Hi Adam, I've been living in Italy, receiving OAS and CPP. I didn't know about the clawback on OAS. How do I know if I get it at all. Or if not how can I apply for it. Since I don't get the full OAS, it would be nice to receive some supplement. Thanks
I like this topic about financial matters.