If I am dual citizen of USA & Canada and have worked for 10 years in Canada (husband & wife grossed $100k for 10 years) and worked for 20 years in USA (husband & wife worked grossed $100k for 20 years) can I draw CPP and social security from both countries.
We will pay tax on the pensions in the individual countries ?
If someone spends 10 years in Canada and does not contribute to CPP how much is he eligible for when he / she becomes 62 / 65 (whatever the age is)?
Location: God's own country
Posted on: 21-11-10 00:24:39
Quote:
Originally posted by Jack109
If I am dual citizen of USA & Canada and have worked for 10 years in Canada (husband & wife grossed $100k for 10 years) and worked for 20 years in USA (husband & wife worked grossed $100k for 20 years) can I draw CPP and social security from both countries.
We will pay tax on the pensions in the individual countries ?
If someone spends 10 years in Canada and does not contribute to CPP how much is he eligible for when he / she becomes 62 / 65 (whatever the age is)?
I am not commenting about USA since I donot know their system.
However, even if you pay $ 1 towards CPP (which you might have done even if you worked as a consultant for some time in IT since you have to pay taxes and when you pay taxes, they do deduct CPP) you are eligible to receive CPP based on your contribution. At age 60, you can opt. for reduced CPP and your CPP is max. when you start collecting at age 65. The current max. CPP payout per month is around $ 930 and this is based on your income from age 18-65 and that you had earned $ 42,000 per year. So based on your contribution and work years you will receive pro-rata. If you have been in Canada for atleast 10 years, CPP will be sent to anywhere in the world.
Now for people who donot have enough CPP, there are 2 further schemes given by the federal govt. One is OAS (Old age security). OAS is based on your stay in Canada. Max. is 40 years. So if you are in Canands for 10 years you will get 1/4th of the max. payout. for OAS to be sent to anywhere in the world, you have to be in canada for 20 years and to receive it 9even in Canada), you have to stay for atleast 10 years
Now if you also donot get CPP and OAS, then GIS kicks in. GIS is guarenteed income suppliment which is paid out for low income people only if you decide to stay and die in canada in your old age.
My calculation shows that the max. govt. payout to a senior at the age of 65 is around $ 1800 a month. So if you receive max. CPP, then OAS will give you the rest and you will not be eligible for GIS
If you have almost no CPP nor savings but you fill the 10 year / 20 year residency, OAS and GIS may give you around $ 1500 a month.
If you have no CPP or OAS, tehn GIS may give you around $ 1300 a month.
So as you can see, it is better to export all your savings to get max. benefit from the govt.. A local who pays CPP from age 18-65 is almost no different from a immigrant who immigrates at age 55 and does no work and relies on welfare cheques to take him to age 65.
At age 65, all your prescription medication (generic ones is mostly given), dental is FREE.
Now , if you spouse also is eligible to recive the OAS and GIS, then there will be a appropriate cut. May be both of you will not receive more than $ 2000 (combines) a month.
Please consult others if you can receive both american and Canadian benefits. I am sure that only CPP will be given and then the benefits in the country you are staying. May be if you stay in India and follow rules of both america and Canada, then you can exploit from both countries.
However, it is fultile to talk of govt. handout 20 years from now as america is likely to be bankrupt and Canada can also become a capitalistic state. The best option is to maximise your savings from TODAY and build a nest egg and invest in real estate in the emerging economies.
let us know what you decide.
Peace
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Quote:Actually, max will be if you delay taking CPP until 70.
Originally posted by tamilkuravan
At age 60, you can opt. for reduced CPP and your CPP is max. when you start collecting at age 65.
65 is break-even.
Whether you take CPP at 60, 65 or 70 depends on many factors, such as your other sources of income, life expectancy, tax situation, etc.
Quote:How can an immigrant at age 55 be eligible for welfare?
So as you can see, it is better to export all your savings to get max. benefit from the govt.. A local who pays CPP from age 18-65 is almost no different from a immigrant who immigrates at age 55 and does no work and relies on welfare cheques to take him to age 65.
At 65, this person will not get any CPP obviously, and the very minimum OAS.
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
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Thanks to both of you.I will research this with my accountant and post whatever I learn.
TK,Good to see you and will give you a call after sending you an email.I had rosy expectations from the Second Career program earlier this summer but figured out in my 2 month off work period that self sponsored immigrants would have a tough time cornering those benefits.
I have heard a lot of cases where parents of PR's/ citizens come to Canada,stay for 10 years and then start drawing $1400 / month without having worked a single day.Again all this is hear say which should not even be documented in the first place.
