Retirement in Canada for a French expatriate
After working in Canada, do I receive a pension?
When you think about working in Canada or after having worked there for several years, it is normal to wonder about the validity of this work period for your retirement.
In order to benefit from a serene retirement, it is necessary to make sure you take advantage of the maximum number of programs available to you.
Are you a French citizen who has worked in France and Canada? You may be eligible for a pension and benefits in one of these countries, or even both in some cases.
How does the Canadian pension work for a French person?
Before anything else, you should know is that the calculation of retirement for a French person takes into account all his years worked in a country of the European Union, the European Economic Area OR in Switzerland, as well as in a country having a social security agreement with France.
Retirement in Canada when you are French: explanations
In 1976, France and Canada signed a bilateral social security agreement that allows citizens of both countries to combine their respective government pensions. This agreement makes it easier for citizens of both countries to access retirement.
Through Social Security Agreement between Canada and Francea person who has worked in both countries could be eligible for a pension and benefits in France or Canada, or even in both countries. See the Government of Canada website for more information.
In other words, your years spent working in Canada will be counted and totalled with other periods worked in France for the purpose of calculating your pension. Eventually, each country will be able to give you your pension according to the time worked in their respective territory.
Canadian pensions and benefits
In Canada, there are a few programs that can help ensure your financial health after you retire. Some of the programs you will hear about are
The Old Age Security Pension (OAS)
Available from age 65, the Old Age Security pension offers you the possibility of receiving up to approximately $627 per month. To find out the exact amount you will receive, simply estimate the number of years you have lived in Canada.
For a full pension, you must have lived in Canada for at least 40 years after the age of 18. For a partial pension, you must have lived in Canada for at least 10 years, again after the age of 18.
Generally, Canadians are automatically enrolled in the Old Age Security pension, but you can also apply if the government has not contacted you.
The Guaranteed Income Supplement (GIS)
The Guaranteed Income Supplement is an additional income for low-income seniors. If a single, widowed or divorced Canadian declares less than $18,984 annually, he or she will be able to take advantage of an additional amount of approximately $919 to meet his or her needs.
The Quebec Pension Plan (QPP)
Unique to Quebec, as its name indicates, the Quebec Pension Plan is a generally mandatory public insurance plan. It is funded by contributions deducted from each of your Canadian paycheques and those remitted by your employer.
The QPP includes a basic plan and a supplementary plan, which together offer an income replacement rate of 33% as of 2019.
To benefit from it, you must apply for it on the Government of Quebec website. You will need to be at least 65 years old and have worked in Canada for at least 40 years. In the other provinces of Canada, the equivalent program is called the Canada Pension Plan.
The Registered Retirement Savings Plan (RRSP) and the Tax-Free Savings Account (TFSA)
In addition to the programs mentioned, Canadians generally supplement their retirement planning with savings plans called RRSPs and TFSAs. Briefly, the RRSP allows you to invest a portion of your income tax-free until the age of 71 and the TFSA allows you to pay no tax on the amounts deposited.
Ask your financial institution for more information.
French pensions and benefits
In France, the legal retirement age is 62. To be able to fully benefit from the national pension, you must have contributed the equivalent of 160 quarters.
Thus, to calculate the amount of the national pension, we will take into account :
- Your average annual income over your best 25 years
- A liquidation rate (50% for a full rate)
- The number of valid quarters worked
The Caisse des français à l'étranger (CFE)
In order to increase your financial coverage during your retirement, French citizens living abroad can also join the Caisse des Français de l'Étranger, which offers complementary health, work accident and retirement benefits.
For an example of how to calculate your pension between Canada and France, consult the Info-Retraite portal.
When should you start looking after your retirement?
In order to take the various steps, it is necessary to wait until the required retirement age to claim your rights.
However, the earlier you find out about the steps to take, the less likely you are to have problems once you reach the required age.
In addition, just as in France, we strongly recommend that you keep your various pay slips and documents proving your quarters worked abroad.
Is it possible to retire in Canada?
If you wish to obtain your Quebec selection certificate to spend your retirement in Canada, you must first have a permanent resident visa issued by the Canadian Embassy.
Some tips
- Keep all your official documents from all the countries you will work in to avoid many problems on your retirement day
- Remember that the quarters (or years) worked in one of the territories under agreement with France are taken into account in the calculation of your pension
- You can join the Caisse des Français de l'Étranger (CFE) to increase the amount of your French national pension
- Before you leave for a foreign country, consider contacting the entities responsible for pensions to specify your situation
We hope that this article has given you the keys to understand the pension system and to take the right steps!
Are you looking for more information about the steps to take for your expatriation to Canada?
Check out our other articles!
