Retiring Abroad as a Canadian
That is 57.5 percent of the full pension.
Picture a couple named Fergus and Bronwyn, 68 and 66, who live in Ottawa. They have found a rented flat in a Portuguese town. The plan is eight months there and four at home, near their son Callan.
Fergus was born in Ottawa. Bronwyn grew up in Wales and came to Canada at 43, so she has 23 years of living here as an adult. A neighbor had told them that twenty years in Canada keeps the pension coming abroad. They read the Government of Canada pages together at the kitchen table.
| What the Government of Canada pages say (read 7 October 2026) | Outside Canada |
|---|---|
| Old Age Security | Paid with at least 20 years in Canada after age 18 |
| A full Old Age Security pension | 40 years in Canada after age 18; fewer years pay years divided by 40 |
| Guaranteed Income Supplement | Not paid for periods abroad longer than 6 months |
| Canada Pension Plan | Paid worldwide |
"I thought twenty years meant the whole amount," Bronwyn said.
"It means some amount," Fergus said. "The whole amount is forty years. You have 23, so you get 23 out of 40."
That is 57.5 percent of the full pension. Fergus has more than 40 years, so his is full.
The third row of the table stopped them. Their income is modest, and the Guaranteed Income Supplement tops it up. Eight months away is longer than six. Old Age Security would carry on. The supplement would not be paid for the long stay. How the six months are counted for people who go back and forth is a question for the office, so Fergus wrote it down.
Then they looked at tax. Canada withholds tax on pensions it sends abroad, and the rate depends on the country.
| Where the pension is sent | Tax withheld (Government of Canada table dated 9 February 2026) |
|---|---|
| Portugal, Spain, Mexico | 15 percent |
| Portugal, extra | First CAD 12,000 of total pensions exempt if a form (called NR5) is filed |
| United States, United Kingdom | 0 percent |
| Italy | 25 percent on Old Age Security, 15 percent on Canada Pension Plan |
For Costa Rica, Panama, Thailand and France, ask the consulate or Service Canada.
An American who meets Fergus and Bronwyn in a Lisbon café may notice one difference. Social Security for a US citizen generally keeps arriving in most countries, with Cuba and North Korea named as exceptions.
You could…
- Ask Service Canada how many years of residence are on record, and whether time in a country with a pension agreement counts toward the 20.
- Ask Service Canada how the six months for the supplement are counted, before booking flights.
- Ask the provincial health plan how many days away it allows.
- Ask an accountant or lawyer who works with Canadians abroad to confirm residency and the Portuguese tax form.
If you have met Canadian neighbors abroad, what did they learn only after the plane left? Write to us below, because a couple still at the kitchen table may be glad to read it.
Figures are estimates for planning, based on public data. Rules change, so each figure shows the year it applies to; ask the official office before you act.
Sources: Government of Canada pages on Old Age Security eligibility and benefit amount, on pensions for people outside Canada, and on tax rates for Canada Pension Plan and Old Age Security abroad (canada.ca/en/services/benefits/publicpensions); Canada Revenue Agency pages on non-residents, leaving Canada and residency status; Ontario page "OHIP coverage while outside Canada" (ontario.ca); Social Security Administration page on payments outside the United States (ssa.gov/international).
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