{"id":26422,"date":"2026-04-30T17:03:06","date_gmt":"2026-04-30T17:03:06","guid":{"rendered":"https:\/\/www.europesays.com\/canada\/26422\/"},"modified":"2026-04-30T17:03:06","modified_gmt":"2026-04-30T17:03:06","slug":"im-a-retiree-thinking-of-leaving-canada-what-will-happen-to-my-cpp-oas-and-work-pension","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/canada\/26422\/","title":{"rendered":"I\u2019m a retiree thinking of leaving Canada. What will happen to my CPP, OAS and work pension?"},"content":{"rendered":"

Open this photo in gallery:<\/a><\/p>\n

Illustration by The Globe and Mail<\/p>\n

Q: My wife and I are thinking of leaving Canada and moving to her homeland in Asia. We consider it more affordable because I\u2019m 74 and retired with a very small company pension, and she\u2019s 48 and her profession is in turmoil in Canada. We rent our home, have non-registered investments and have $500,000 in savings. What will happen to my CPP, OAS and employer pension? Will I face non-resident withholding taxes on CPP and OAS? Do Canadians have to report and be taxed on income from all over the world, no matter where we live? I\u2019m also concerned that my wife could potentially outlive our finances. <\/p>\n

We asked Brenda Hiscock, a certified financial planner with Objective Financial Partners Inc., to answer this one.<\/p>\n

This question is not uncommon, according to Ms. Hiscock. \u201cMany people consider moving abroad in retirement for a variety of reasons \u2013 including better climate, lower cost of living and, in some cases, lower tax rates,\u201d she said. Ms. Hiscock broke down some of the considerations before making the move:<\/p>\n

Declaring non-residency: When you move away from Canada, you typically become a non-resident for tax purposes, she said. Becoming a non-resident for tax purposes generally requires that you sever residential ties in Canada, she added. <\/p>\n

\u201cIn your case, this may include having your spouse leave Canada with you. Since you don\u2019t own a home in Canada, as long as you establish residential ties in the country you wish to reside in and your spouse accompanies you, that may suffice,\u201d she said. You may also need to sell your personal property and sever other ties in Canada and establish them in another country.<\/p>\n

Departure taxes: You indicated that you hold non-registered investments. If you become a non-resident, Ms. Hiscock noted that you may be subject to departure taxes. \u201cThe CRA acts as if you sold certain assets, and the sale price is the fair market value as of the date you leave Canada,\u201d she said.<\/p>\n

Deferred capital gains will also be triggered and payable as if you sold those investments, even if you didn\u2019t. The good news is that RRSP and TFSA accounts are exempt from departure taxes, as is Canadian real estate.<\/p>\n

Withholding taxes: When a taxpayer becomes a non-resident of Canada, their Canadian-sourced income may be subject to withholding tax, with no ongoing income tax filing requirements. \u201cThat said, there may be optional tax returns to consider,\u201d Ms. Hiscock said. \u201cYou indicated that you will earn income from CPP, OAS, an employer pension and RRIF. Depending on the country that you move to, Canada will withhold 15 to 25 per cent of the income you receive from these sources.\u201d<\/p>\n

In Asia, most countries are subject to 25-per-cent withholding taxes on Canadian-sourced income. If that rate is higher than the tax rate you would otherwise pay if you were still a Canadian resident, you may be able to elect to file a return in Canada each year under section 217 of the Income Tax Act<\/a>, which can result in a tax refund of a portion of your withholding taxes, Ms. Hiscock advised. This election, she added, could be beneficial for someone with a relatively low income.<\/p>\n

Other considerations: You expressed concerns about your wife outliving your finances. Ms. Hiscock suggested that it may be helpful to work with a CFP professional who can help you determine if your desired spending and lifestyle costs are possible without depleting all resources during your lifetime. <\/p>\n

\u201cSome financial institutions may not be able to continue working with non-residents,\u201d she said. There can be an impact on health insurance coverage and estate planning documents. Working with professionals can help to ensure a smooth transition. \u201cDepending on your situation, you might work with a number of people to make this go smoothly: a CFP professional, an accountant in Canada \u2013 and in the country you will reside \u2013 an immigration specialist and an expat insurance provider.\u201d<\/p>\n

Do you want advice on a financial planning or retirement issue that\u2019s affecting you? Send us an e-mail<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: Illustration by The Globe and Mail Q: My wife and I are thinking…\n","protected":false},"author":2,"featured_media":26423,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[17,7349],"class_list":{"0":"post-26422","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-canada","8":"tag-canada","9":"tag-r-fp"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/26422","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/comments?post=26422"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/26422\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media\/26423"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media?parent=26422"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/categories?post=26422"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/tags?post=26422"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}