OAS, CPP & GIS: Don’t Lose Your Benefits When Retiring Overseas

Like many Canadians planning to retire cheap my benefits are super important to my financial stability. What are the rules? Is it possible to keep ALL of your benefits while retiring cheap? Here’s everything you need to know in a list.

These are the big numbers. 3 months and 6 months.

OAS: According  to the Canadian government website, if you live outside of Canada for more than 6 months AND did not reside for 20 years after you turned 18 it will stop. This means as long as you’re 38 and over and grew up in Canada your OAS (old age security)will never stop.

GIS (Guaranteed Income Supplement): This is the real stinker. If you’re planning to retire cheap on $1000 a month you’ll probably be receiving a GIS. How much is it?

Finally your provincial healthcare. It depends from province to province. If you live in Alberta it is 6 months. Other provinces vary from up to 8 months to 9 months in Newfoundland. That’s living there, not just owning a property. That means you can only be gone for 182 days. Any longer you risk losing your residency. To get it back you’ll have to live there for 3 consecutive months.

CPP is going to vary person by person.

If you plan a conservative estimate of $500 a month you should be alright.

Here’s a chart with the maximums.

This means on average you will receive $1300 a month once you hit 65 as a Canadian.

If you’re thinking of retiring early (like I did). Then you’ll have to figure out the gap between what you currently have and the amount of years you have left.

For example if you want to retire at 45, then you’d need 20 years of savings or $240,000. (20 x 12 months x $1000).

As you can see, I’m worth $150,000. My goal is to retire by 60. So I need $180,000.

Being short $30,000 means either using my line of credit (boo), working some random jobs(currently I’m making $2550 in social media for clients).

This means if nothing changes (no extra money from personal training, no portfolio increases) then in 1.3 years I can literally do nothing and sit around.

I consider myself retired now though, because my jobs aren’t tiresome. I love personal training and making content for social media. I think of them more as hobbies than work.

I hope this helps your own personal planning. If you want more articles go here. LINK TO ALL ARTICLES