Former Canuck dreams of the tropics

[lawman3966]

I'm 48, single, and looking to retire in my early to mid fifties.

In case anyone knows about this. I have questions pertaining to Can-US cross-border retirement issues. I left Canada at 19 and should eligible for Canadian OAS in addition to U.S. social security (although I will wait a while for both: 65 for OAS, and 67 or 70 for SS).

In fairness, this is a pretty obscure area of retirement benefits. And, many people, even some Canadian lawyers who've advertised on the Internet, seem to be misinformed on the subject.

My question is directed to how partial year employment in the U.S. is credited as Canadian residency for OAS benefit purposes. The pertinent web sites just refer to "periods of contribution" to the US pension system counting as residency in Canada. Another site refers to "social security credits" being counted. But, that vague formula, and the information included on my annual SS statement aren't really enough to determine whether, for example, $4,000 subject to US SS tax in 1980 counts as a year, a half year, or a quarter of Canadian residency.

The outcome will determine how many more years I'll have to either a) work in the U.S. and/or b) reside in Canada, to ensure future eligibility for OAS.

In general, the plan for retirement is to be a U.S. tax resident, a Canadian "legal resident", and a physical resident of some sunny spot in SE Asia, all of which is completely workable and legal from what I've read.

[RetireeRobert]

Welcome to the forums.

Your question on Candian OAS----seems best if you go straight to the responsible Canadian agency administering the program. Ask them the questions, and get the best scoop straight from the horse's mouth, eh?

As a US person, I have no idea the name of the Canadian agency responsible, but they must have a website with FAQ's, I would think.

Again, welcome.

[Ed_The_Gypsy]

The mind boggles.

My credentials: I am a US citizen working in Canadistan for several years. I read about this stuff, but it gets murky very quick to me and my head hurts.

I do not know what OAS is. I know what CPP (Canadian Pension Plan) is. CPP is well-funded. However, if you have not been paying into it, don't expect to get any benefits.

I cannot imagine why you might want to be a US tax resident if you are living outside the US or Iceworld. As I understand it, Canada is more lenient to its citizens if you live outside of the country than the US is. Any money you make outside is up to you.

Uncle Sam sees it differently with respect to his citizens. US citizens are taxed on their income no matter where they live--even ten years after they renounce their citizenship.

If you qualify for SS you have paid because of US income, it is a good deal. I know that Uncle will pay you SS if you qualify but are not a US citizen, even if you live outside the US of A--tax treaties and so forth.

Best advice: Get a green card, earn in the US, pay SS in the US, then retire in Mexico and take your SS.

[kcowan]

Originally Posted by lawman3966

In general, the plan for retirement is to be a U.S. tax resident, a Canadian "legal resident", and a physical resident of some sunny spot in SE Asia, all of which is completely workable and legal from what I've read.

You can be a Canadian citizen and receive CPP and OAS no matter where you live. The only thing you sacrifice is medicare. I know a Canadian who has lived in Mexico for 10 years. He does not even have a Mexican bank account. Does all his banking online and at the ATM. Pays all his bills in cash.

But he pays income tax in Canada. When retired, Canadian income tax is pretty reasonable. I have only paid some in 2 of the last 5 years. In the other years I get rebates.

[Ed_The_Gypsy]

Maybe the green card is not a good idea after all. See DangerMouse's comments here:

Is anyone tempted to do some "market timing"