# A Pension Question UK -vs- Canada



## NiesaK (May 26, 2014)

In eager anticipation of some good advice, thank you all.

I’ve spent half of my (working) life in the UK and the other half in Canada. Not sure if this is good or bad, but it does mean that I won’t get a full pension in either country. I’m hoping that combined it will be as good as one of these countries could provide with a full entitlement.

These are my questions:
1.	I’d like to continue splitting my time between the two, but from a financial perspective (i.e., pension) not sure which one. It may be that the additional benefits in the UK would make it more financially viable so does anyone have experience of this situation?

2.	If I make Canada my residence, then as well as Canada Pension, I am able to claim a supplement in Ontario (Guaranteed Income Supplement) as my OAS won’t kick in for a year or two when I reach 65. I’ve been advised by some friends that these two payments (CPP and GIS) can be made even if I travel for 3-4 months to the UK. They’re taxable in Canada and I’m obliged to complete a tax return every year. Not a problem, but I’m a little sceptical about it continuing if I’m out of the country for 4 months. 

Conversely, if I decided to make my home base in the UK (doubtful) then until I’m 65, would receive only CPP and thereafter I’d get CPP and OAS, as well as some pro rated UK pension.

Would anyone be able to confirm these two scenarios?

3.	My UK pension will commence when I’m 65 and unless I choose to live there on a permanent basis, it will be a pro rated pension for the years I’ve contributed i.e., no additional benefits like Cold Weather Payments, Pension Credits. Can I have this paid into my bank in Canada?

This has all come about because the company I currently work for is likely to be winding up and after spending 40+ years of my life working, looking after my dad who had dementia and Alzheimers and having cancer treatment, I think I may well opt for an early retirement at 63.

When you don’t know how many years are left to you (and I do realise that applies to us all) then I don’t know if I want to wait 2 more years for a small increase in what these plans will pay. I certainly don’t have an extravagant lifestyle, but I’m a little worried that the stress around job loss and finding another won’t help my chances of avoiding a recurrence. What price is on peace of mind?

Any advice would be greatly appreciated.


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## Auld Yin (Mar 10, 2009)

You do realize that you need to qualify for the GIS payment and as your lifestyle indicates you're not living at subsistence level it will likely be denied. I think it highly unlikely it'll be paid to you if your living in UK. 
If you stay in Canada your UK OAP will be fixed at level first received.


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## NiesaK (May 26, 2014)

Thanks for the response. I'm not sure though where my 'lifestyle' is indicated in my original post. I don't own a home, don't have much in the way of savings and live pay cheque to pay cheque. Perhaps not subsistence level, but certainly CPP wouldn't be enough to pay the rent on my apartment and eat. ... But thank you nevertheless, I guess I won't find out until I apply.


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## _shel (Mar 2, 2014)

Lifestyle is indicated by saying you split your time between countries. Most whose income and savings is such that they can afford flights and holidays out of the country for 3/4 months at a time generally dont qualify for government support. Pension credits at least takes into account income and savings.


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## NiesaK (May 26, 2014)

Flight and holidays? I wish. The trips between the two are made out of necessity (relatives to tend to). Thank you.


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## Auld Yin (Mar 10, 2009)

NiesaK said:


> Flight and holidays? I wish. The trips between the two are made out of necessity (relatives to tend to). Thank you.


I doubt the G of C will see it that way.


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## GWH64 (Nov 22, 2014)

NiesaK said:


> 2.	If I make Canada my residence, then as well as Canada Pension, I am able to claim a supplement in Ontario (Guaranteed Income Supplement) as my OAS won’t kick in for a year or two when I reach 65. I’ve been advised by some friends that these two payments (CPP and GIS)
> 
> Conversely, if I decided to make my home base in the UK (doubtful) then until I’m 65, would receive only CPP and thereafter I’d get CPP and OAS, as well as some pro rated UK pension.
> 
> ...


You won't get GIS if you become a UK tax resident. Your CPP can be paid into a UK bank, as can the OAS. Note however that the OAS is only paid to non-Canadian residents if they had lived in Canada for at least 20 years since the age of 18.

As someone already said, if you remain as a tax resident in Canada, your UK state pension will be fixed for all time at the amount you're eligible for when you first claim it. (No cost of living increments ever).


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## PM584 (Dec 4, 2014)

Service Canada has an online retirement income calculator that may be helpful. If not, I would suggest calling them direct. Best to get answers directly from the source.


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