Updated on February 12, 2024
This article explores what happens to your Guaranteed Income Supplement (GIS) if you decide to retire abroad. The Canadian government offers this supplement to elderly individuals in Canada, providing a monthly payment to residents aged 65 and above.
What Happens to Your GIS If You Retire Abroad
The GIS serves as a form of old age security, offering eligible citizens enough funds to meet their needs. However, if an individual leaves Canada for more than six months, they become ineligible to receive GIS benefits. To explore further details about what happens to your GIS if you retire abroad, including information about GIS and its essential facts, keep reading this article.
The GIS, or Guaranteed Income Supplement, is a financial support program provided by the Canadian Government to its citizens. The amount of GIS benefits varies depending on an individual’s eligibility for old age security in Canada. However, if someone who is eligible for GIS retires abroad for more than six months, they are no longer eligible to receive GIS benefits.
When an individual decides to move abroad, it’s crucial for them to inform the Canadian Government. However, relocating overseas is a significant decision, and there are various financial considerations that individuals need to take into account.
What is GIS?
The GIS is a monthly payment provided to elderly residents of Canada. Under this program, recipients receive a specific amount based on their income and available old age pension. It is designed to support pensioners with low incomes by providing them with a tax-free source of income.
To be eligible for these benefits, individuals must be 65 years or older and reside in Canada. The supplement is exclusively available to those who are already receiving their Old Age Security (OAS) pension. Additionally, to qualify for the Guaranteed Income Supplement, the individual’s income must be below 21,456 CAD.
Benefits of GIS if you are Retiring Abroad
The Guaranteed Income Supplement offers continuous financial support to eligible residents throughout all 12 months of the year. These benefits persist as individuals age and maintain a low income, representing an ongoing supplement provided by the government.
Once an individual retires abroad, their GIS payments will cease after six months. The government will only continue granting GIS payments for this period, as individuals are no longer considered Canadian residents. It is essential for beneficiaries to inform the government about their retirement overseas. If they return within six months, they can resume receiving their supplement; otherwise, the payments will be discontinued.
Check These Facts Before Retiring Abroad
Before retiring abroad, individuals must consider several important factors:
- Conducting a thorough risk assessment: It’s crucial to assess all potential risks associated with relocating abroad, including personal safety, health conditions, local policies, and the natural environment.
- Evaluating opportunities: Individuals should carefully evaluate the opportunities available to them outside of Canada, including work, study, and retirement prospects.
- Understanding the implications of moving abroad: Retiring abroad signifies embarking on a new chapter in life. Many Canadians choose to relocate either full-time or part-time. However, it’s essential to note that if someone moves abroad permanently, the government will cease their Canadian benefits.
By considering these factors beforehand, individuals can make informed decisions and better prepare for retirement abroad.
Moving abroad requires individuals to obtain a visa, which can impact their ability to return home in retirement. Additionally, government benefits will cease upon moving abroad, and individuals may face limitations on their ability to work.
It’s essential to plan for retirement, considering factors such as the cost of living, which is increasing rapidly due to inflation. This includes expenses related to purchasing or renting property in both Canada and overseas.
Healthcare costs should also be carefully considered when retiring abroad, as healthcare is essential for individuals of all ages. Retirees should prioritize healthcare, treating it as a significant aspect of their retirement planning. Healthcare functions as a Medicare supplement from the moment individuals register for their care.