| View previous topic :: View next topic |
| Author |
Message |
Hsinchuguy
Joined: 09 Apr 2003
Posts: 109
Location: Toronto
|
 Posted: Sun Mar 27, 2011 2:36 am Post subject: Is it possible to contribute to CPP while working overseas? |
 |
|
| Can I contribute to CPP (Canada Pension Plan) if I'm working overseas? I'm working in Canada now but I'm considering a return to Taiwan. A British friend told me that he can contribute to the UK pension fund from overseas, can we Canadians contribute to ours? |
|
| Back to top |
|
 |
yamahuh
Joined: 23 Apr 2004
Posts: 1033
Location: Karaoke Hell
|
| Posted: Sun Mar 27, 2011 9:20 am Post subject: |
|
|
Did a bit of looking around and came across this
Hi, after a long talk with the Canada Revenue Agency - International Tax Office today I thought I'd post the results for any Canadians out there.
The big question was - if my husband and I leave Canada for Switzerland can he still contribute to his CPP (assuming we would retire to Canada)?
The answer was as follows: NO.
They then continued with the following - when a Canadian Citizen or Permanent Resident returns to Canada they can retroactively pay their CPP contributions for all or some of the years they were abroad and then reap the higher pension payouts after retirement. This is brilliant if you are on a "Swiss salary" because your Canada pension is based on your World Income from your top 20 working years.
|
|
| Back to top |
|
|
Hsinchuguy
Joined: 09 Apr 2003
Posts: 109
Location: Toronto
|
| Posted: Sun Mar 27, 2011 3:49 pm Post subject: |
|
|
Hi Yamahuh;
I came across that bit too. So far I'm taking it as THE answer. |
|
| Back to top |
|
|
TaoyuanSteve
Joined: 05 Feb 2003
Posts: 1028
Location: Taoyuan
|
| Posted: Mon Mar 28, 2011 3:45 am Post subject: |
|
|
| I just helped a mature friend of mine living here apply for his CPP/OAS benefits. Aparently, it's not just your max income years that help determine your CPP payment totals; it's also total number of years paid. Your max income years will determine what payment level you are entitled to, but your total number of years paid will determine what percentage of that level you will receive. Eg, in my friend's case, he had been away from Canada and not contributed for a certain number of years. As a result, he is only entitled to a 95% pension. So, if given the option of retroactively filling in those missing years, it may be worth while to do so. |
|
| Back to top |
|
|
yamahuh
Joined: 23 Apr 2004
Posts: 1033
Location: Karaoke Hell
|
| Posted: Mon Mar 28, 2011 3:02 pm Post subject: |
|
|
| Good to know. |
|
| Back to top |
|
|
yamahuh
Joined: 23 Apr 2004
Posts: 1033
Location: Karaoke Hell
|
| Posted: Mon Mar 28, 2011 3:03 pm Post subject: |
|
|
| Good to know. |
|
| Back to top |
|
|
Hsinchuguy
Joined: 09 Apr 2003
Posts: 109
Location: Toronto
|
| Posted: Tue Mar 29, 2011 1:30 am Post subject: |
|
|
| TaoyuanSteve wrote: |
| I just helped a mature friend of mine living here apply for his CPP/OAS benefits. Aparently, it's not just your max income years that help determine your CPP payment totals; it's also total number of years paid. Your max income years will determine what payment level you are entitled to, but your total number of years paid will determine what percentage of that level you will receive. Eg, in my friend's case, he had been away from Canada and not contributed for a certain number of years. As a result, he is only entitled to a 95% pension. So, if given the option of retroactively filling in those missing years, it may be worth while to do so. |
Thanks Steve, that's helpful. It's still a tough choice though. More savings potential overseas vs. counting on a pension that may not add up to that much. Do you happen to know how many years you have to have worked in Canada to get the full pension? Also, do all those years I worked part-time as a student count as years worked? |
|
| Back to top |
|
|
yamahuh
Joined: 23 Apr 2004
Posts: 1033
Location: Karaoke Hell
|
| Posted: Tue Mar 29, 2011 2:41 am Post subject: |
|
|
| Well, why don't you look at it this way - if you have more savings potential overseas then take some of those savings and set yourself up with a bank account at home to wire your future CPP contributions into. When you're able to, take the money and make a lump sum contribution to top up your contributions. That way you don't lose out down the road when you're in your twilight years and are still able to enjoy the savings potential that you have by working somewhere that doesnt' tax you to death ... and then taxes you some more. |
|
| Back to top |
|
|
Hsinchuguy
Joined: 09 Apr 2003
Posts: 109
Location: Toronto
|
| Posted: Tue Mar 29, 2011 10:12 pm Post subject: |
|
|
| yamahuh wrote: |
| Well, why don't you look at it this way - if you have more savings potential overseas then take some of those savings and set yourself up with a bank account at home to wire your future CPP contributions into. When you're able to, take the money and make a lump sum contribution to top up your contributions. That way you don't lose out down the road when you're in your twilight years and are still able to enjoy the savings potential that you have by working somewhere that doesnt' tax you to death ... and then taxes you some more. |
That sounds like a good idea but didn't we determine earlier that you can't contribute to CPP if you're working overseas? The person who posted from Switzerland got a "no" to that question right? |
|
| Back to top |
|
|
Shimokitazawa
Joined: 16 Aug 2009
Posts: 458
Location: Saigon, Vietnam
|
| Posted: Tue Mar 29, 2011 10:27 pm Post subject: |
|
|
| Hsinchuguy wrote: |
| yamahuh wrote: |
| Well, why don't you look at it this way - if you have more savings potential overseas then take some of those savings and set yourself up with a bank account at home to wire your future CPP contributions into. When you're able to, take the money and make a lump sum contribution to top up your contributions. That way you don't lose out down the road when you're in your twilight years and are still able to enjoy the savings potential that you have by working somewhere that doesnt' tax you to death ... and then taxes you some more. |
That sounds like a good idea but didn't we determine earlier that you can't contribute to CPP if you're working overseas? The person who posted from Switzerland got a "no" to that question right? |
Is this Canada Pension Plan, the one that all Canadians are entitled to at age 64?
Are you saying that if you do not work in Canada, you cannot qualify for the pension? |
|
| Back to top |
|
|
yamahuh
Joined: 23 Apr 2004
Posts: 1033
Location: Karaoke Hell
|
| Posted: Wed Mar 30, 2011 1:36 am Post subject: |
|
|
| Hsinchuguy wrote: |
That sounds like a good idea but didn't we determine earlier that you can't contribute to CPP if you're working overseas? The person who posted from Switzerland got a "no" to that question right? |
Right - not while you're overseas - but from reading this when a Canadian Citizen or Permanent Resident returns to Canada they can retroactively pay their CPP contributions for all or some of the years they were abroad and then reap the higher pension payouts after retirementit sounds like you can when you return. That's what I'm suggesting. Set up an account and wire enough $$ into it every year you're away to top up your contributions when you return. |
|
| Back to top |
|
|
yamahuh
Joined: 23 Apr 2004
Posts: 1033
Location: Karaoke Hell
|
| Posted: Wed Mar 30, 2011 1:40 am Post subject: |
|
|
| Shimokitazawa wrote: |
Is this Canada Pension Plan, the one that all Canadians are entitled to at age 64?
Are you saying that if you do not work in Canada, you cannot qualify for the pension? |
Nope - but if you don't contribute you don't qualify.
Taken directly from the Service Canada website.
The Canada Pension Plan (CPP) Retirement Pension provides a monthly taxable benefit to retired contributors.
Your contributions are used to determine if you or your family are eligible for a benefit, and to calculate the monthly amount. Both the length of time and the amount of earnings on which you contribute (up to the maximum each year) are factors. Normally, the more you earn and contribute to the Canada Pension Plan over the years, the higher the benefit will be (when you become entitled) because you will have built up a lot of Canada Pension Plan pension credits
The total span of time during your life when you may contribute to the Canada Pension Plan is called your contributory period. |
|
| Back to top |
|
|
Shimokitazawa
Joined: 16 Aug 2009
Posts: 458
Location: Saigon, Vietnam
|
| Posted: Wed Mar 30, 2011 4:46 pm Post subject: |
|
|
| yamahuh wrote: |
| Shimokitazawa wrote: |
Is this Canada Pension Plan, the one that all Canadians are entitled to at age 64?
Are you saying that if you do not work in Canada, you cannot qualify for the pension? |
Nope - but if you don't contribute you don't qualify.
Taken directly from the Service Canada website.
The Canada Pension Plan (CPP) Retirement Pension provides a monthly taxable benefit to retired contributors.
Your contributions are used to determine if you or your family are eligible for a benefit, and to calculate the monthly amount. Both the length of time and the amount of earnings on which you contribute (up to the maximum each year) are factors. Normally, the more you earn and contribute to the Canada Pension Plan over the years, the higher the benefit will be (when you become entitled) because you will have built up a lot of Canada Pension Plan pension credits
The total span of time during your life when you may contribute to the Canada Pension Plan is called your contributory period. |
So, not all Canadians are automatically entitled to the Canada Pension Plan at 64? I thought all Canadians received a pension at 64 and that it didn't matter if you were a housewife all your life or a guy working for a company for 30 years. Does Canada have some kind of pension like that? |
|
| Back to top |
|
|
Shimokitazawa
Joined: 16 Aug 2009
Posts: 458
Location: Saigon, Vietnam
|
| Posted: Wed Mar 30, 2011 4:53 pm Post subject: |
|
|
| yamahuh wrote: |
| Hsinchuguy wrote: |
That sounds like a good idea but didn't we determine earlier that you can't contribute to CPP if you're working overseas? The person who posted from Switzerland got a "no" to that question right? |
Right - not while you're overseas - but from reading this when a Canadian Citizen or Permanent Resident returns to Canada they can retroactively pay their CPP contributions for all or some of the years they were abroad and then reap the higher pension payouts after retirementit sounds like you can when you return. That's what I'm suggesting. Set up an account and wire enough $$ into it every year you're away to top up your contributions when you return. |
Interesting post. One of my Canadian colleagues was telling me about a month ago that he could contribute to the Canada Pension Plan while working overseas. However this is not true. One must return to Canada and then make up for the payments not made while working overseas. So what happens then if a Canadian were to return to Canada, make up the pension payments, and then leave to work overseas again? |
|
| Back to top |
|
|
yamahuh
Joined: 23 Apr 2004
Posts: 1033
Location: Karaoke Hell
|
| Posted: Thu Mar 31, 2011 12:45 am Post subject: |
|
|
| Shimokitazawa wrote: |
So, not all Canadians are automatically entitled to the Canada Pension Plan at 64? I thought all Canadians received a pension at 64 and that it didn't matter if you were a housewife all your life or a guy working for a company for 30 years. Does Canada have some kind of pension like that? |
Yes.
The Old Age Security pension is a monthly payment available to most Canadians aged 65 or older. You must apply to receive benefits. If you meet the eligibility requirements explained below, you may be entitled to receive the Old Age Security pension even if you are still working or have never worked.
We look at three factors to determine if you can receive the Old Age Security pension: your age, your legal status, and the number of years you have lived in Canada.
If one of the two scenarios listed below describes your situation, you may be eligible to receive the Old Age Security pension.
Scenario 1 - People living in Canada
�You must be 65 years of age or older.
�You must live in Canada and be a Canadian citizen or a legal resident at the time we approve your pension application.
�You must have lived in Canada for at least 10 years after turning 18.
Scenario 2 - People living outside Canada
�You must be 65 years of age or older.
�You must have been a Canadian citizen or a legal resident of Canada the day before you left Canada.
�You must have lived in Canada for at least 20 years after turning 18. |
|
| Back to top |
|
|
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
