I am a US citizen (retired military after 39 years) who has worked for about 42 years in US. My wife is a Dual citizen working in US. and she worked and lived in Canada for 35 years until 2005 and now in USA has lived and worked for almost 5 years.
She just turned 60 last January. Would it be beneficial for her to file for CPP and collect the reduced amount while still working in the USA. I plan to retire at 64 next year and collect SS. Could she collect CPP and work until she turns 64 and then switch and collect spousal SS down here. Which is higher? Or should she just wait until she is 64 and collect CPP and then at 65 collect AOS? She is not eligible for SS based on her years of work in the USA but I know there is a reciprocal agreement. Not sure what to do..which would bring in more money? Thank you for your reply in advance.
Can Dual citizen wife collect CPP while working in USA
Moderator: Mark T Serbinski CA CPA
The fact that she is working in the US is meaningless in the context of this queston.
The decision is simply should she begin to collect CPP now, or later. Period.
SS will be hers too, either spousal or her own.
They will calculate her "own' SS, based on her US work experience, and give her that instaed iof it is more than the spousal amount. She is eligible for SS because of her Cdn plus US work history adding up to 10 years or more.
She will also get OAS 35/40ths of the max.
A person who takes lower CPP at 60, collects more money than a person who waits til 65, until about age 74, after which the person who waited has caught up. So the decision is yours.
The decision is simply should she begin to collect CPP now, or later. Period.
SS will be hers too, either spousal or her own.
They will calculate her "own' SS, based on her US work experience, and give her that instaed iof it is more than the spousal amount. She is eligible for SS because of her Cdn plus US work history adding up to 10 years or more.
She will also get OAS 35/40ths of the max.
A person who takes lower CPP at 60, collects more money than a person who waits til 65, until about age 74, after which the person who waited has caught up. So the decision is yours.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Thank you for your reply! It is apprecaited! If she works full time in the USA and files for CPP early (now at age 60) would her CPP be reduced because she is working down here. On Service Canada they have listed what she would get if she retired today. Is that what she would get monthly? Also would there be any problem having it sent down here.
T Butler
When I said that her working wouldn't matter, what should you infer from that?
CPP payout is calculated based on the age you take it, between 60 and 70. Once she takes it, that is the monthly payment for the rest of her life, adjusted for cost of living.
As I said, even with the reduced payout, she still comes out ahead until age 74.
CPP is sent anywhere in the world. For US residents, its even direct-deposited in US dollars. It will be taxed only in US, in the same manner as Social security.
CPP payout is calculated based on the age you take it, between 60 and 70. Once she takes it, that is the monthly payment for the rest of her life, adjusted for cost of living.
As I said, even with the reduced payout, she still comes out ahead until age 74.
CPP is sent anywhere in the world. For US residents, its even direct-deposited in US dollars. It will be taxed only in US, in the same manner as Social security.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Keep in mind however that she may be subject to WEp. When she applies she MUST report any other sources of social benefits, as well as any work that was not covered by SS (be it in US or elsewhere).
WEPO will then ddetermine whether her SS will be cut.
But if her SS is based solely of 1/3 of yours, that should be fine.
WEPO will then ddetermine whether her SS will be cut.
But if her SS is based solely of 1/3 of yours, that should be fine.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing