Can you receive OAS outside Canada? This is a common question among individuals who have spent a significant portion of their lives working and contributing to the Canadian economy, but are now considering retirement abroad. The Old Age Security (OAS) program is a vital source of income for many Canadians, and understanding its eligibility and coverage while living outside the country is crucial for making informed decisions about retirement. In this article, we will explore the ins and outs of receiving OAS outside Canada, including the requirements, the application process, and the potential impact on your benefits.
The Old Age Security program is a federal government initiative designed to provide a basic level of income security to Canadians upon reaching the age of 65. While it is a Canadian program, eligible individuals can receive their OAS benefits while living in many countries around the world. However, there are specific criteria that must be met to qualify for OAS outside Canada.
Eligibility for OAS outside Canada
To be eligible for OAS outside Canada, you must meet the following requirements:
1. Residency in Canada: You must have lived in Canada for at least 20 years after turning 18 years old. This does not have to be consecutive years, but the total must be at least 20 years.
2. Citizenship or Permanent Resident: You must be a Canadian citizen or a permanent resident of Canada. If you are a citizen of another country, you may still be eligible for OAS if you meet the residency requirement.
3. Proof of Age: You must provide proof of age, such as a birth certificate or passport.
4. Residency outside Canada: While you can receive OAS benefits while living abroad, you must be a resident of a country with which Canada has a social security agreement. As of now, Canada has agreements with over 40 countries, including popular retirement destinations like Australia, the United Kingdom, and New Zealand.
Applying for OAS outside Canada
If you meet the eligibility criteria and are a resident of a country with a social security agreement, you can apply for OAS benefits while living abroad. The application process is relatively straightforward:
1. Check your eligibility: Before applying, ensure that you meet all the requirements for receiving OAS outside Canada.
2. Contact Service Canada: You can apply for OAS by contacting Service Canada. They will guide you through the application process and provide you with the necessary forms.
3. Submit your application: Complete the application forms and submit them to Service Canada. You may be required to provide additional documentation, such as proof of age, citizenship, and residency.
4. Wait for approval: Once your application is submitted, it will be reviewed. If approved, you will start receiving your OAS benefits.
Impact on OAS benefits
When you receive OAS benefits while living outside Canada, there are a few factors to consider:
1. Income Tax: You may be subject to income tax on your OAS benefits in the country where you reside. It is important to check the tax laws in your country of residence.
2. Benefit Calculation: Your OAS benefits may be recalculated if you receive income from another country. This is to ensure that you do not receive more than the maximum OAS benefit.
3. Social Security Agreement: The terms of the social security agreement between Canada and your country of residence will determine how your OAS benefits are calculated and taxed.
In conclusion, if you are a Canadian citizen or permanent resident and have lived in Canada for at least 20 years after turning 18, you can receive OAS outside Canada, provided you meet the residency and citizenship requirements. It is essential to understand the application process and the potential impact on your benefits to ensure a smooth transition into retirement abroad.
