# Retiring in Canada as "new" immigrants



## cannon_fodder (Apr 3, 2009)

I've been focused on retirement planning for my wife and I which is about 10 years away for us. But, I've been in Canada almost all of my life while my wife has been here for 25 years.

She recently visited some cousins, a married couple, who have been here only 9 years. He is 65, still working, and has been working for 9 years earning about half of the Maximum Pensionable earnings (MPE). His wife is 63 years old, has been in Canada for 9 years but has never worked.

Here is what I guess will happen in 2010, 2011 and going forward:


2010
- if he opts to retire next year, he would be entitled to CPP but probably at somewhere near 1/2 (MPE) x 10/(66 years old - 18 years old) x (1 + 3% for taking it at 66 vs. 65) of the maximum
- he would be entitled to 10/40 of the OAS maximum because you need to be in Canada for 10 years to be entitled to it.
- he would be entitled to the maximum GIS (subject to any clawback due to income thresholds)


2011
- now his wife would be entitled to 11/40 of the OAS maximum because she would have been in Canada for 11 years
- she would be entitled to maximum GIS (subject to any clawback due to income thresholds)

At a high level, do I have this right?


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## CanadianCapitalist (Mar 31, 2009)

I think so; I'm not sure about the CPP calculation. It might be best to get an estimate along with the Statement of Contributions:

http://www.hrsdc.gc.ca/eng/isp/cpp/soc/soctoc.shtml


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