# Can I go back to Canada to retire? What are the issues?



## ragdish (Dec 28, 2008)

Greetings,

I am a dual US/Canadian citizen. I left Canada in 1994 and I became an American citizen in 2007. I am age 42 and I am currently an assistant professor of Medicine. I wish to return to Canada to retire when I reach my 60s. Are there any healthcare or immigration issues I should be aware of? Can I collect my retirement income while residing in Canada? Are there any issues regarding paying taxes on my retirement income?

Thank you.


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## Bevdeforges (Nov 16, 2007)

Hi and welcome to the forum.

You should probably check with the Canadian authorities before you move back there to check on your status with the Canadian health care system. You may wind up having to have private health insurance if you haven't been paying into the Canadian system over a certain period of time just prior to your retirement.

As a US citizen, you will be expected to file US taxes for the rest of your days, no matter where you live. There is a social security treaty, I expect, between the US and Canada which determines which country gets the taxes on your retirement income - depending on its source. You should be able to avoid double taxation, but someone will get the taxes on it.

Depending on your family status (married, single, etc.) and a few other factors, you may find that 100% of your US social security will be taxed by the US (at least the way the laws work now). You've got a bit of time before retirement, so perhaps that will change.
Cheers,
Bev


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## synthia (Apr 18, 2007)

Social security income is not taxable unless your income exceeds certain limits, and even then, some part of it remains free of tax.

From what other Canadians have told me, you can get back into the health system after living in Canada for a while.

If you have been working in a university, you may not have been contributing to social security at all, and have a pension from the university retirement plan. In either case, leaving the country should not affect your benefits, except for Medicare, which is only good in the US. Most people find the easiest way to manage it all is to retain a US bank account and access their money through an ATM or a monthly transfer to their local account. Social security will actually deposit your money in a foreign bank, but I'm told it's more trouble than it's worth.


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## Bevdeforges (Nov 16, 2007)

synthia said:


> Social security income is not taxable unless your income exceeds certain limits, and even then, some part of it remains free of tax.
> 
> From what other Canadians have told me, you can get back into the health system after living in Canada for a while.
> 
> If you have been working in a university, you may not have been contributing to social security at all, and have a pension from the university retirement plan. In either case, leaving the country should not affect your benefits, except for Medicare, which is only good in the US. Most people find the easiest way to manage it all is to retain a US bank account and access their money through an ATM or a monthly transfer to their local account. Social security will actually deposit your money in a foreign bank, but I'm told it's more trouble than it's worth.


Under certain conditions, US social security becomes 100% taxable for some folks living outside the US. (I know because I'm one of those folks... and not at all happy about the situation. It has nothing to do with my level of income, either.) Like I said, though, perhaps the tax laws will change over the next couple of years...

Having your social security direct deposited into a local bank account gives you certain advantages, not the least of which is getting a (usually) better rate of exchange thanks to the banking "power" of the local consulate. It may be easier to transfer funds between the US and Canada, but transferring funds just about anywhere else involves big transfer fees. Having overseas direct deposit gives you the funds available where you are without having to negotiate wire transfers with the banks. It's definitely worth considering.
Cheers,
Bev


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## synthia (Apr 18, 2007)

How does social security become fully taxable? Ouch.


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