Can You Receive Old Age Security (OAS) While Living Outside Canada? The 20-Year Rule

What This Is and Who Administers It

The Old Age Security (OAS) pension is a federal pension administered by Employment and Social Development Canada through Service Canada. It is separate from the Canada Pension Plan (CPP): OAS does not depend on work history, while CPP is based on contributions. This article covers OAS and the related benefits only.

For people planning to live in China long term, the key question is whether OAS can continue to be paid while living outside Canada. The official page separates the eligibility rules for people living in Canada from those for people living outside Canada.

Eligibility If You Live in Canada

The official page states that you must be 65 years or older to receive the OAS pension. If you are living in Canada, you must:

Be a Canadian citizen or a legal resident at the time the OAS pension application is approved
Have resided in Canada for at least 10 years since the age of 18

Eligibility If You Live Outside Canada

If you are living outside Canada, the official page states that you must:

Have been a Canadian citizen or a legal resident of Canada on the day before you left Canada
Have resided in Canada for at least 20 years since the age of 18

In other words, receiving OAS from outside Canada is tied to a 20-year residency requirement, not the 10-year requirement that applies when living in Canada. This is stated directly on the official page.

How Work and Income Affect Eligibility

The official page states that you can receive the OAS pension even if you have never worked or are still working. Employment does not affect eligibility, but income does.

The official page lists annual net income thresholds for receiving the OAS pension:

Less than $152,062 (65 to 74 years old)
Less than $157,923 (75 years and older)

Net income is calculated by adding all types of income, including private and public pensions (including retirement and disability), benefits (including EI and worker's compensation), salaries, rental income, RRSP withdrawals, and taxable interest, dividends and capital gains.

The official page states that the following are not included: the OAS pension itself, Guaranteed Income Supplement (GIS), Allowance or Allowance for the Survivor payments, RDSP payments, and GST/HST credit payments.

The official page also states that you must submit a tax return each year to receive the OAS pension. The tax return is used to determine your net income when you apply.

Working Outside Canada for a Canadian Employer

The official page states that time worked outside Canada for a Canadian employer may count as residence in Canada if you:

Return to Canada within 6 months after your job ends
Turn 65 while still working abroad and maintaining your residence in Canada at the time

Two documents are required when applying: proof of employment from the employer, and proof of physically returning to Canada (unless you turned 65 while still employed outside Canada).

The official page also states that under certain conditions, spouses, common-law partners, dependents, and Canadians working abroad for international organizations may also count time spent abroad as residence in Canada.

Living or Working in Another Country

The official page states that if you have lived or are living outside Canada, you may qualify for both the OAS pension and a pension from the other country, if that country has a social security agreement with Canada.

A separate official page explains that a social security agreement is an international agreement between Canada and another country designed to coordinate the pension programs of the two countries for people who have lived or worked in both. Canada has signed such agreements with a number of countries offering comparable pension programs. Requirements vary from agreement to agreement, and the official page states that it is important to check the details of the agreement that relates to you.

Why the Guaranteed Income Supplement (GIS) Stops After Leaving Canada

The official page lists the conditions for GIS. To be eligible, you must:

Get the OAS pension
Be 65 or older
Be a Canadian citizen or a legal resident
Live in Canada
Have income below the maximum annual income threshold for GIS based on your marital status
Not currently be under a sponsorship agreement

Living in Canada is one of the conditions listed on the official page. The Allowance and the Allowance for the Survivor also list living in Canada and at least 10 years of residence in Canada since age 18 among their conditions.

The official page cited here does not list the specific GIS income threshold figures; it states only that the threshold depends on marital status.