What Happens to Your GIS If You Retire Abroad: Check These Facts Before Retiring Abroad
In this article, you’ll learn what happens to your GIS when retiring abroad. Before making the move, it’s crucial to check these facts. The Canadian government offers a guaranteed income supplement for residents aged 65 and above.
What Happens to Your GIS If You Retire Abroad
The GIS functions as a financial support system for seniors, ensuring eligible citizens have ample funds for their needs. If someone relocates from Canada for over six months, they won’t receive GIS benefits. For more essential information on retiring abroad and its impact on your GIS, including what GIS is and key facts, keep reading this article.
The Guaranteed Income Supplement (GIS) is a financial aid program provided by the Canadian Government. GIS rates vary based on an individual’s eligibility for old age security in Canada. If someone qualifies for GIS but retires abroad for more than six months, they won’t be eligible for GIS benefits.
Before heading abroad, it’s crucial for individuals to notify the Canadian Government. Moving overseas is a significant undertaking, and there are various financial aspects that individuals need to carefully consider.
What is GIS?
The GIS is a monthly payment extended to elderly Canadian residents. Participants receive a predetermined amount based on their income and existing old age pension. This tax-free income is specifically aimed at pensioners with low incomes.
To qualify for these benefits, individuals need to be aged 65 or older and reside in Canada. The supplement is available only to those already receiving their OAS pension. For eligibility, individuals must have an income below 21,456 CAD for the guaranteed income supplement.
GIS Advantages for Retiring Abroad
The Guaranteed Income Supplement offers continuous financial support throughout the year for eligible residents with low income. This non-stop government supplement is provided beyond the age of eligibility.
However, for those retiring abroad, the funds cease after six months. The government grants GIS payments for only that duration, ceasing when individuals are no longer Canadian residents. Beneficiaries must inform the government about their overseas retirement. If they return within six months, they can resume receiving the supplement.
Before retiring abroad, individuals need to consider crucial factors:
- Conduct a thorough risk assessment, considering safety, health conditions, policies, and the natural environment to ensure a well-informed decision.
- Evaluate opportunities such as work, study, and retirement options outside of Canada carefully.
- Recognize that moving abroad is akin to starting a new chapter in life. Whether relocating full-time or part-time, individuals who move abroad permanently may have their Canadian benefits discontinued by the government.When individuals move abroad, they need a visa, which can affect their ability to retire back home. Additionally, government benefits may cease, and they may encounter limitations on their ability to work.Planning for retirement is crucial, considering the rising cost of living both in Canada and abroad due to inflation. This encompasses expenses like property acquisition or rental, both domestically and internationally.When retiring abroad, factoring in healthcare costs is essential for individuals of all ages. Recognizing the special significance of healthcare, it serves as a vital supplement, akin to Medicare, from the day of registration onward.