Look on the bright side.
The Charlie and Carlos case above has been simplified to clarify our point. If you spend your time abroad, you may need to catch up, so you need to think differently about your retirement plans. For immigrants like Carlos, the situation is not too difficult, since they may have other sources of retirement that Charlie does not have.
- Many migrants have access to public and private pension plans in their country of origin, depending on their profession, before moving to Canada. In some countries, this can be a great advantage. For example, US social security generally offers higher benefits than CPP and QPP, at least in high-income countries.
- Immigrants may have individual retirement savings plans, such as RRSP or TFSA accounts, in their home country, or they may have unrecorded savings.
- Paying an annuity in a currency stronger than the Canadian dollar has the added benefit of a favorable exchange rate (think of the euro or the US dollar in recent years).
Old Age Security
Old Age Security (OEA) is a federally funded monthly pension that is paid to eligible seniors who have turned 65 and are Canadian citizens or permanent residents and have lived in Canada for at least 10 years from 18 years. To qualify for RSA, applicants can apply 12 months before their 65th birthday or on the day they qualify. To qualify for RSA, applicants must apply 12 months before their 65th birthday or before the qualification date.
Seniors are eligible for full benefits if they have lived in Canada for 40 years. The maximum amount in March 2006 was $ 487.54. Seniors who have lived in Canada for more than 10 years may be eligible for a partial pension based on the number of years they have lived in Canada.
Furthermore!
Seniors who have lived in Canada for less than 10 years may be eligible for the OAS even if their home country (or former country of residence) has an international social security agreement with Canada. For example, an older immigrant who has lived and worked in the United States for four years may be eligible for a partial pension after having lived in Canada for six years. Russia, China, South Korea, Afghanistan, Iraq and Mexico do not have such social security agreements.
Older Canadians who migrate from Canada to other countries can only receive an OAS pension if they have lived in Canada for 20 years (starting at 18). If you have lived in Canada for less than 20 years, your pension will be paid within the month you left and within the next 6 months. For example, if an older person leaves Canada in January, they will receive payment until the end of July. If you return to live in Canada, payment will resume in the month you return.
Do you live or work outside of Canada?
We recommend that you check to see if Canada and your country have a social security agreement and the terms of that agreement. Social security agreements help qualify for government benefits in both countries. Social security agreements help qualify for government benefits in both countries. In other words, contributions to foreign plans can be treated as CPP contributions.
Some of these agreements provide tax credits for foreign pensions received by Canadian residents. Below certain thresholds, these pensions may be tax-exempt in your country or subject to lower tax rates under the applicable tax treaty with Canada.
It is important to remember that you must report your global income on your Canadian tax return, regardless of whether the foreign government imposes a tax on non-residents. To avoid double taxation, we recommend that you claim a foreign tax credit for all the taxes you pay.
