Mike and Sandy have lived and worked in the U.S. and Canada for 20 years. They were shocked to learn just how much they would receive from U.S. Social Security, the Canada Pension Plan (CPP), and Old Age Security (OAS). For them, knowing this amount made them comfortable about not delaying their retirement any longer. In this video, we discuss what cross-border benefits you will qualify for, how much you might receive, and how the elimination of the WEP provision helps your U.S. Social Security benefit.
Watch the video here:
Need More Help?
Are you interested in working with a financial planner specializing in cross-border financial planning? Schedule a complimentary meeting below, and let’s simplify your cross-border financial plan.
Summary
Cross-Border Retirement Benefit Guidance
Bryan discussed a case study of Mike and Sandy, who lived and worked in both the US and Canada for 20 years before coming to him for benefit advice. Initially unaware of their eligibility and potential benefits from Social Security, CPP, and OAS, they were surprised to learn how much they could receive from both countries. Bryan explained that cross-border retirees often face similar uncertainties about their benefits and emphasized the importance of seeking professional guidance to understand their full entitlement.
Cross-Border Retirement Benefits Overview
Bryan, a certified financial planner and chartered financial analyst, discussed the importance of understanding cross-border retirement benefits for clients who have lived and worked in both the U.S. and Canada. He explained that the primary benefits for most clients include U.S. Social Security, the Canada Pension Plan, and the Canadian Old Age Security. Bryan emphasized that many people are unaware of the benefits they qualify for and highlighted the recent elimination of the Windfall Elimination Provision, which can increase U.S. Social Security benefits for some cross-border retirees.
Cross-Border Retirement Benefits Overview
Bryan explained the benefits available to cross-border retirees, focusing on U.S. Social Security and Canadian Pension Plan (CPP) and Old Age Supplement (OAS). He clarified that U.S. Social Security eligibility requires at least a year and a half of U.S. work, combined with Canadian work, to qualify, while CPP eligibility is based solely on Canadian work history. Bryan also explained that OAS eligibility can be met using the U.S.-Canada Totalization Agreement, requiring a combination of Canadian residency after age 18 and U.S. work experience exceeding 20 years in total.
International Retirement Benefits Overview
Bryan explained the retirement benefits for a hypothetical couple, Mike and Sandy, who lived in Canada for 20 years and then moved to the United States. He detailed their eligibility for Canadian Pension Plan (CPP) and Old Age Security (OAS) benefits, which together would provide them with approximately $1,032 per month in Canadian dollars, or about $1,600 per month in U.S. dollars. Bryan also outlined their U.S. Social Security benefits, which would provide Mike with $2,700 per month and Sandy with a spousal benefit of $13.50 per month, resulting in a total of over $4,000 per month in Social Security benefits. When combined, Mike and Sandy’s total monthly retirement income would be over $5,600.
Border Retirement Planning Benefits Overview
Bryan discussed the benefits of retirement planning for individuals with U.S. and Canadian benefits, highlighting how many people are surprised by the substantial monthly income they can receive. He explained that the elimination of the windfall elimination provision in 2025 has resulted in increased benefits for couples, particularly those with less than 30 years of U.S. work and a foreign pension. Bryan emphasized the importance of understanding complex border retirement planning and offered to help create personalized retirement income plans, including determining eligible benefits and the optimal timing for drawing down assets. He encouraged viewers to schedule a complimentary consultation to begin planning their retirement.
For me, US SSA was easy to manage and they have a good website. Services Canada just quoted the Canadian OAS requirements, not acknowledging totalization, then said my SIN was inactive so they had to reactivate it. Strange as they had successfully processed my CPP appication a couple of years ago. They promised online access through GC key to their apps but didn’t send the access info as promised. In the end I gave up trying to collect OAS, and will try if andwhen I’m in Canada again, it’s not much money anyway.
I tried to find out my CPP in Canada but service Canada tells me that my Social insurance number is blocked because of long disuse. I guess I will need to contact consulate to unblock it a year or so before retirement. But you may wish to mention SIN blocking to other listeners of your channel
Great, I will. Thanks for the suggestion.
When I tried applying by calling Service Canada 3 years ago they also told me my SIN was blocked because I hadn’t used it. They unblocked it and sent me a confirmation in the mail to my address in the US.