CPP and OAS Abroad: How to Collect Your Canadian Pensions as a Non-Resident

Updated May 2026 · Financial Planning

One of the most common fears among Canadians planning to leave is this: "If I move abroad, do I lose my pension?"

You do not.

Both the Canada Pension Plan (CPP) and Old Age Security (OAS) can be paid to you anywhere in the world. You spent decades paying into the system, and residency in Canada is not a condition for collecting what you earned. But there are rules, withholding taxes, and one significant exception that every departing Canadian needs to understand before they go.

CPP Abroad: You Earned It, You Keep It

CPP is a contributory program. Your benefit is based entirely on your contributions over your working life - not on where you live when you collect it. Moving to Portugal, Mexico, or Malaysia does not affect your entitlement.

Age and timing options:

• You can start CPP as early as age 60, but taking it early results in a permanent reduction in your monthly benefit.
• The standard start age is 65.
• You can defer CPP up to age 70, which increases your monthly payment with each month you delay.

The right start age depends on your health, your other income sources, and your destination country's tax treatment of Canadian pension income. There is no universal answer.

CPP does not start automatically. You must apply through Service Canada. Service Canada can pay your CPP via direct deposit to a Canadian bank account, a foreign bank account in many countries, or by cheque. Direct deposit is strongly preferred.

OAS Abroad: Residency-Based, Not Contribution-Based

OAS works differently from CPP. It is funded by general tax revenues and based on how long you lived in Canada, not on what you contributed.

The non-resident residency requirement: To receive OAS while living outside Canada, you must have at least 20 years of Canadian residency after age 18. If you have between 10 and 19 years of residency after age 18, you may still qualify for OAS while abroad if Canada has a social security agreement with your destination country. If you have fewer than 10 years, OAS payments generally stop when you leave.

Check your residency years carefully before assuming you qualify. Service Canada has tools and resources to help you calculate your OAS entitlement.

Like CPP, OAS becomes available at 65. You can also defer OAS up to age 70, which increases the monthly benefit.

Non-Resident Withholding Tax: The Number That Surprises Most People

Both CPP and OAS are subject to Part XIII non-resident withholding tax.

The default withholding rate is 25%. Before your pension income reaches your bank account, Service Canada will withhold 25 cents on every dollar unless a tax treaty between Canada and your destination country reduces that rate.

Canada has tax treaties with many countries that reduce the withholding rate on pension income. Verify the current withholding rate directly with CRA for your specific destination country before you relocate. Treaty rates change, treaties get renegotiated, and individual circumstances affect how the rules apply.

When building your budget, calculate against the net (post-withholding) figure unless you have confirmed a treaty reduction applies.

Informing Service Canada: A Step You Cannot Skip

When you leave Canada and become a non-resident, you must notify Service Canada of your new address and your change in residency status. If you do not, Service Canada may continue treating you as a Canadian resident, apply incorrect withholding rates, and create a compliance problem for you later.

This is not optional and it is not automatic. Service Canada does not know you left just because you stopped filing a Canadian tax return or closed your bank account. Contact Service Canada and update your address and residency status before or promptly after your departure. Get the confirmation in writing.

What About GIS? It Stops at the Border.

GIS is an income-tested benefit available to low-income OAS recipients in Canada. It is one of the few components of the Canadian retirement system that is explicitly tied to Canadian residency. This is a meaningful financial consideration for lower-income retirees who are weighing a departure. The retirement optimizer guide covers CPP and OAS timing strategy in detail.

The OAS Recovery Tax (Clawback)

High earners need to know about the OAS recovery tax. If your net world income exceeds a threshold set by CRA each year, OAS benefits are reduced or eliminated entirely. This applies to non-residents as well as residents.

For most people, this is not a concern. But if you have substantial income from investments, foreign pensions, or other sources, check the current CRA threshold for the year in question.

Taxation in Your Destination Country

Canadian withholding tax is only half the picture. Your destination country may also tax your Canadian pension income under its own rules.

Tax treaties between Canada and your new home country typically include provisions that determine which country has primary taxing rights over pension income, and whether a credit or exemption applies for taxes paid to the other country. In practice, many popular expat destinations allow a credit for Canadian withholding tax against local tax liability. But this is not universal and the details vary by treaty and by country.

Understand what Canada withholds, and understand how your destination country will treat the same income. If the numbers are significant, a cross-border tax advisor is worth the consultation fee.

Practical Logistics Before You Go

Set up direct deposit. Pension cheques sent internationally face currency conversion costs, postal delays, and clearing times that can stretch weeks. Service Canada can deposit directly to many foreign bank accounts. If your destination country is supported, set this up before you leave.

Apply early. Service Canada recommends applying for CPP and OAS several months before you want payments to start. If you are planning a departure, coordinate your pension start date with your timeline. Do not wait until you are abroad to begin the application process.

Keep records. Document your Canadian residency years for OAS purposes. Service Canada may request proof of your residency history. Keep copies of tax returns, health card records, and any other documentation that establishes your years in Canada.

The Bottom Line

Leaving Canada does not mean leaving your pension behind. CPP follows your contributions. OAS follows your residency history. Both can be paid anywhere in the world.

What changes when you leave is the tax treatment - non-resident withholding applies, treaty rates may reduce it, and your destination country has its own rules. GIS disappears entirely. And you have administrative responsibilities to inform Service Canada of your status change.

Know the rules before you go. The pension income you built over decades belongs to you - make sure you collect it correctly.