How would you calculate social security/CPP payout for a dual citizen

20 years in USA @ 80K
15 years in Canada @ 80K

Should I apply for Social Security or CPP after 35 years of working?
Have a home in Florida (taxes filed in USA) and Toronto (taxes filed in Canada)

Where are you working? US or Canada? SS and CPP depend on where you work since withholding is out of your employment earnings.

The answer is not straightforward. The amount you receive will be based on your earnings history, retirement age, and other factors.

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Dimple2001

Dimple,
Thanks for the email. DOB 1976

2001 to 2004 USA / 20K every year
2005 to 2020 CAN / 80K every year
2020 to 2035 USA / 80K every year

I am trying to figure out the best way out after 55.It may be cheaper for me to float around in Ecuador or Palawan Phillipens than paying 407.Effort / Reward?

I am afraid, you are getting too ahead of yourself. If you earn employment credits the way you have stated above, at some point in the distant future, you should be able to estimate what your payout would be. It is almost impossible to calculate that now since your earnings are bound to change as the years go.

That being said, you can create an account with the SSA and get an estimate of what your payout would be and that estimate is usually based on the most recent earnings history....and again, it is a wild guess at best, even when it comes from the SSA.

You may be able to do the same with CPP. Try this link - http://www.taxtips.ca/calculator/cppretirementpension.htm

Personally, I have assumed that SSA (in my case, SSA applies) will go bankrupt or diminish quite severely as the years go by. Therefore, I have planned my retirement funding based on personal investment. If I do receive a payout, it would be a nice pleasant bonus.

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Dimple2001

Most of these articles are based upon you and anyone attaining the age of 65. But a few Governments have moved the goal posts and so, all of the write up here if based upon the retirement age of 65, then will not hold water or will be subject to change and hence I would urge you to go to the EXPAT forums to get an update and the difficulties experienced.

If you are retiring at 55, then you are on your own at Ecuador OR at Philippines and your anticipated funds will be in jeopardy and your health care expenses will also enter into the picture and none of these figures will even work in any of the calculations.

I can only guess your age and your anticipated contributions that enter the picture now, based upon the projections to 2035. Based upon that projection you will have more than a Million bucks to spend and you ever receiving any of the Social Services by then will be just a token sum, after you are made to file your US Tax return. So, just add or tack it on to the contributed years in Canada to the US, and forget about OAS/CPP as long as you can. Then one fine day if your health care bites you in the back, drop in and set up residence and derive the health Benefits here after 3 months of residence. (Do keep the Canadian Passport in good stead.)
You can also evaluate Obamacare or T/C care there in the US, as it gets slowly expanded.

All I can see is a long road ahead of you and nothing to base my calculations or even an outlook for you that far into the future. Despite the deficiency of facts that are currently available, it looks great with the salary figures provided by you.

I wish I can get to access a few actuarial tables for a few of my projections in my calculations, especially in these times of economic uncertainties.

FH.

xxx

https://www.ssa.gov/international/Agreement_Pamphlets/canada.html

This link will provide you with details from other countries, where it is offered to their residents. If you are also a recipient of such services, then they will with hold a certain portion as TAX and will expect you to file a return to claim it, or forgo that much when you fail to file a return. But for USA, tax filing is Mandatory.

https://www.ssa.gov/international/

http://cardinalpointwealth.com/are-cross-border-social-security-benefits-taxable/
Please read a few interesting articles based on their taxation systems.

http://business.financialpost.com/personal-finance/family-finance/dual-canadian-u-s-citizens-can-conquer-tax-challenges

YOU CAN ALWAYS FIND OUT.... This is yours for keeps... http://www.servicecanada.gc.ca/eng/video/cpp-rpc.shtml

Also see if there are similar benefits available at the US end. : https://www.canada.ca/en/services/benefits/publicpensions.html

THEN THERE IS CLAW BACK.. Also find out more on the same through the tax returns. VERY IMPORTANT.

Read a few EXPAT Blogs to get some input into this topic.

http://www.canadianexpatnetwork.com/public/1078.cfm

http://cardinalpointwealth.com/news-articles/

http://cardinalpointwealth.com/tax-planning/

http://cardinalpointwealth.com/cross-border/

fh

I lost you there at the 407.Effort/Reward...
xxx
I am trying to figure out the best way out after 55.It may be cheaper for me to float around in Ecuador or Palawan Phillipens than paying 407.Effort / Reward?

Quote:

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Originally posted by Jack109

How would you calculate social security/CPP payout for a dual citizen

20 years in USA @ 80K
15 years in Canada @ 80K

Should I apply for Social Security or CPP after 35 years of working?
Have a home in Florida (taxes filed in USA) and Toronto (taxes filed in Canada)

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Dimple and Full house
Thanks a lot for all the help and the links.Will go over your links and will update my findings.

Have a great spring/summer.

Thanks,