To get a Canadian pension, you generally need to meet residency/contribution requirements: for Old Age Security (OAS), at least 10 years of residency after 18 (20 years if living abroad) for any pension, with 40 years for the full amount; for the Canada Pension Plan (CPP), you need at least one valid contribution (a single year of work) to qualify for any payment, with 39 years of contributions earning the maximum, and you must be 60+ to apply.
There isn't one magic number of years you have to work to get “a pension” in Canada. It depends on which pension you're talking about: CPP (Canada Pension Plan): Based on how long and how much you contributed. OAS (Old Age Security): Based on how long you've lived in Canada, not how long you've worked.
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.
You may continue working while you're receiving the Canada Pension Plan (CPP). If you're between 60 and 65 years old, you must continue to contribute to the CPP.
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.
Prioritizing a pension over Social Security can be attractive for several reasons. First, pensions often provide a more predictable and potentially higher income stream. The predictability of a fixed income from a pension can also be advantageous who prefer financial stability and want to plan their retirement budget.
CPP When Leaving Canada
The good news is, your CPP benefits will travel with you if you move abroad. This means the amount you receive abroad remains the same as if you lived in Canada. So, your CPP will be paid the same amount regardless of where you retire.
From 20 September 2025, the full pension is available, under the assets test, for homeowner singles whose assessable assets are under $321,500 – for homeowner couples the number is $481,500. The numbers for non-homeowners are $579,500 and $739,500 respectively.
If you have Social Security credits in both the United States and Canada, you may be eligible for benefits from one or both countries. If you meet all the basic requirements under one country's system, you will get a regular benefit from that country.
There's no single “best” age to retire in Canada—it depends on your money, health, and what you actually want your life to look like. Most people aim somewhere between 60 and 70, but the real “right” age is when you can comfortably cover your expenses without anxiety.
There are 2 main types:
The $1,000 a month rule is a retirement guideline suggesting you need about $240,000 saved for every $1,000 per month in desired income, based on a 5% annual withdrawal rate (5% of $240k is $12k/year, or $1k/month). It's a simple way to set savings goals, but it doesn't account for inflation, taxes, or other income like Social Security, so it's best used as a starting point, not a complete plan.
As a non-resident of Canada, you may be entitled to apply for Canada Pension Plan (CPP) payments and Old Age Security Pension (OAS) payments.
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.
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.
Can you retire on $500,000 in Canada? Based on some of these rules, let's calculate what the retirement income would be. The average retirement age in Canada is 65. Estimating that the $500,000 is to last you 25 years, your yearly retirement income would be $20,000.
If you live part of the year abroad
You must choose which country you want your pension to be paid in. You cannot be paid in one country for part of the year and another for the rest of the year.
Claiming your pension while working
You can claim your pension while you're working, as long as you've reached: State Pension age, if you're claiming the State Pension. the age agreed with your pension provider, if it's a personal pension or workplace pension.