My wife and I left Canada for the US in 1988. At the time, my wife had about 17 years of employment entirely in Quebec. We have become US citizens and have not made any contributions since our departure. I am 70 and have been receiving benefits for several years along with Social Security. My wife is now 63.
We need some advice about when she should apply for her QPP and CPP benefits. We have some reserves and are trying to optimize our incomes for retirement. Is there any advantage to my wife waiting any longer for either?
Thanks.
As US citizen: when to apply for CPP and QPP benefits
Moderator: Mark T Serbinski CA CPA
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bostonrob5
- Posts: 6
- Joined: Wed May 18, 2016 9:23 am
- Location: US
Will your spouse be collecting her own social security, or will she be claiming an amount equal to half of yours? Did she work at all?
She needs to have worked a couple of year in US in order to collect long-term OAS. This is because she arrived in US when she was 35, meaning she has 17 years of life in Canada as an adult. To collect OAS she needs to have about 12 quarters of SS to her own name. She will then qualify to get 17/40ths of the OAS maximum. Otherwise they would pay her for only six months.
You are obviously asking because of WEP. You have no doubt semn the effects of WEP on your SS. If she takes SS based on your SS, rather than her own, her CPP won't affect her SS (since it already affected yours). If she uses her SS account, then WEP will be used against for her CPP effectively reducing her CPP "value". So it probably better to take CPP earlier rather than later, and get the full benefit of it, at least for the years until she is eligible for SS.
If she is going to collect SS based on you, then their is no harm in waiting, but most analyses I've seen still show quite a late break-even point, well into the 70's before waiting is the better choice, even with the recent bonus/penalty scheme CPP has for waiting/taking early.
So, I would be taking CPP asap, and taking OAS as soon as I'm 65 (or whatever her cut-off age is now).
She needs to have worked a couple of year in US in order to collect long-term OAS. This is because she arrived in US when she was 35, meaning she has 17 years of life in Canada as an adult. To collect OAS she needs to have about 12 quarters of SS to her own name. She will then qualify to get 17/40ths of the OAS maximum. Otherwise they would pay her for only six months.
You are obviously asking because of WEP. You have no doubt semn the effects of WEP on your SS. If she takes SS based on your SS, rather than her own, her CPP won't affect her SS (since it already affected yours). If she uses her SS account, then WEP will be used against for her CPP effectively reducing her CPP "value". So it probably better to take CPP earlier rather than later, and get the full benefit of it, at least for the years until she is eligible for SS.
If she is going to collect SS based on you, then their is no harm in waiting, but most analyses I've seen still show quite a late break-even point, well into the 70's before waiting is the better choice, even with the recent bonus/penalty scheme CPP has for waiting/taking early.
So, I would be taking CPP asap, and taking OAS as soon as I'm 65 (or whatever her cut-off age is now).
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
Just to clarify OAS. In order to collect OAS "forever" when you live outside Canada, you need to have lived in Canada 20 years as an adult. Canada/US have agreement that timed WORKED (not simply lived) in US can be used towards the 20 years. It doesn't get you more OAS, it simply allows you to qualify. Thus her need to have worked about 3 years or 12 quarters.
Those with less than 20 years, are given 6 months worth of OAS, if they live outside Canada and that is it.
Those with less than 20 years, are given 6 months worth of OAS, if they live outside Canada and that is it.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
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bostonrob5
- Posts: 6
- Joined: Wed May 18, 2016 9:23 am
- Location: US
Thank you for your answers.
My wife has worked in the US for more than 10 years. But she will receive more SS by claiming half of mine when she is 66. I waited until age 70 for SS to maximize. I lost about $100/month to WEP.
So if I understand you: It looks like she would qualify for OAS at age 65 at 17/40ths of the $573 maximum, or so? And you would take the QPP now, in this situation?
My wife has worked in the US for more than 10 years. But she will receive more SS by claiming half of mine when she is 66. I waited until age 70 for SS to maximize. I lost about $100/month to WEP.
So if I understand you: It looks like she would qualify for OAS at age 65 at 17/40ths of the $573 maximum, or so? And you would take the QPP now, in this situation?
Rob
Re-read what I said:
If she is going to collect SS based on you, then their is no harm in waiting, but most analyses I've seen still show quite a late break-even point, well into the 70's before waiting is the better choice, even with the recent bonus/penalty scheme CPP has for waiting/taking early.
Since wep is out of the picture, it is a simple analysis. figure the break-even point on taking CPP now vs, waiting to 65 or 70 and decide.
If she is going to collect SS based on you, then their is no harm in waiting, but most analyses I've seen still show quite a late break-even point, well into the 70's before waiting is the better choice, even with the recent bonus/penalty scheme CPP has for waiting/taking early.
Since wep is out of the picture, it is a simple analysis. figure the break-even point on taking CPP now vs, waiting to 65 or 70 and decide.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing