You do not automatically lose Old Age Security (OAS) if you leave Canada, but it depends on how long you lived in Canada and your length of absence. You can continue receiving payments abroad if you are 65+ and lived in Canada for at least 20 years after age 18, or if you lived in a country with a social security agreement.
The OAS is only impacted if the total income for the year is just over $80k. Thats when OAS can be clawed back. The GIS will be impacted because you lose a certain amount of GIS for every dollar you make not including OAS income.
In actual fact, you can be absent from Canada as long as you want. The Canadian government recognizes that citizens may travel extensively, work or study abroad. You will always maintain your Canadian citizenship. What absentia may affect is your Canadian health care coverage and income tax.
You have several options: Transfer the accumulated funds to a Locked-In Retirement Account (LIRA). When you retire, the funds can be transferred to a Life Income Fund (LIF) so you can make withdrawals. Transfer the funds to your new employer's pension plan.
You don't lose it , it either stays in the pension fund until you reach retirement age, or you might be able to transfer it to a pension scheme in your new country, depending on where you go and the agreements between countries. It's worth contacting your pension provider to ask about your options.
Services Australia outlines the following: If you're overseas for up to 6 weeks — Generally, your pension payments will continue as normal if you're travelling for less than 6 weeks. If you're overseas for more than 6 weeks — Once you reach 6 weeks, your pension supplement will drop to the basic rate.
Yes, you can receive your Canada Pension Plan (CPP) payments while living outside Canada, as long as you meet the eligibility requirements. The CPP is a contributory plan, meaning you must have made sufficient contributions during your working years in Canada to qualify for benefits.
Leaving or returning to Canada
Your Old Age Security (and Guaranteed Income Supplement) may stop if you're away for more than 6 months and don't qualify for receiving your payments while outside Canada.
Here are some situations that might affect your pension: Termination of employment before retirement: If you leave your employer before retirement age, you may forfeit some or all your pension benefits depending on your plan's vesting schedule.
The $1,200 payment is a one-time direct deposit issued by the Canada Revenue Agency for seniors classified as low income based on their most recent tax return. The payment is not a loan, does not need to be repaid and does not replace existing monthly benefits.
Your provincial health plan must remain active for the entire duration of your trip. You will need to requalify for provincial health coverage if you leave and stay out of Canada beyond the maximum provincial time limits.
If you are a resident of both the United States and another country under each country's tax laws, you are a dual resident taxpayer. If you are a dual resident taxpayer, you can still claim the benefits under an income tax treaty.
Canada's 183-day rule is a key factor in determining tax residency: if you stay in Canada for 183 days or more in a calendar year, you're generally considered a resident for tax purposes for that entire year (a "deemed resident"), even if you don't have strong ties, subjecting your worldwide income to Canadian tax. However, this rule works alongside Canada's complex residency tests and tax treaties, meaning you might become a resident sooner with significant ties (like family or property) or avoid it if a treaty designates you a resident of another country.
That said, you must have lived and worked in that country and Canada for at least 20 years. If you don't meet these above requirements then you won't be able to receive your OAS pension outside of Canada. This means that you will stop receiving payments if you're out of the country for more than 6 months.
How To Minimize OAS Clawback?
Latest payment adjustment – January to March 2026
Based on changes in the Consumer Price Index (CPI), OAS benefits increased by 0.3% for the January to March 2026 quarter, for an increase of 2.0% over the past year, from January 2025 to January 2026.
If your net world income exceeds the threshold amount ($90,997 for 2024), you have to repay part or your entire OAS pension. Part or your entire OAS pension is reduced as a monthly recovery tax.
The "pension 5-year rule" refers to different IRS rules for retirement accounts (like Roth IRAs needing 5 years for tax-free earnings), beneficiary rules (requiring heirs to empty inherited accounts within 5 years), and specific employment pensions (like Federal or Congressional plans requiring 5 years of service for vesting or benefits). It can also relate to UK pension rules for overseas transfers (QROPS) or breaks in service for public sector workers, preventing tax avoidance or loss of benefits.
If you opt out or stop paying into a pension, any money you've built up remains yours. You can usually choose to leave it where it is, transfer it to a new scheme or ask for a refund.
Because CPP is a "member-contributed plan" it will always be yours, regardless of where you live in the world. If you paid in at least 1 CPP contribution, you are entitled to a benefit. OAS, on the other hand, comes out of the general tax revenues.
Options for Your Pension When You Quit Your Job
You could cash it out, keep the money in the plan without making any more contributions, or even, in some cases, transfer your pension plan to your new position.
There Is No “Six-Months-Per-Year Rule” for Canadians. Many Canadians mistakenly believe they may only spend six months each year in the United States. The truth: There is no U.S. rule limiting Canadians to six months total per year.
For Canadians retiring overseas, knowing how to access their Canada Pension Plan payments while living abroad is crucial. The CPP allows eligible retirees to receive payments in foreign countries, but you still need to ensure proper arrangements are made before leaving Canada.
If you are retiring abroad, you can continue to receive your UK State Pension. You can get pension increases yearly if you live in a European Economic Area (EEA) country or a country which has a social security agreement with the UK. For further information go to: Living or working overseas and the State Pension.