For Canadians and Americans who have spent part of their careers on each side of the border, retirement can come with an unusual question: Can I collect both Canada Pension Plan (CPP) and U.S. Social Security benefits?
In many cases, the answer is yes.
Historically, however, receiving CPP could affect the calculation of U.S. Social Security benefits because of a rule known as the Windfall Elimination Provision (WEP). That has now changed.
The Social Security Fairness Act, signed into law on January 5, 2025, repealed the Windfall Elimination Provision as well as the Government Pension Offset (GPO). The repeal applies to Social Security benefits payable for January 2024 and later.
For Canadians with U.S. work history and Americans who have worked in Canada this is an important change to understand when planning retirement income.
- Navigating CPP and Social Security
- Can You Collect Both SSN and CPP?
- What Happened to the Windfall Elimination Provision (WEP)?
- Similarities Between Social Security and CPP
- What About Old Age Security (OAS)?
- Can You Receive CPP and OAS While Living in the United States?
- Working on Both Sides of the Border
- When Should You Start CPP and Social Security?
- Frequently Asked Questions (FAQ)
Navigating CPP and Social Security
It is common for Canadians, dual citizens and Americans living in Canada to have contributed to both CPP and U.S. Social Security during their careers.
The two systems operate independently, but the Canada–U.S. Social Security Agreement, commonly referred to as the Totalization Agreement, can help individuals who have divided their careers between the two countries.
In the United States, workers generally need 40 Social Security credits to qualify for retirement benefits based entirely on their own U.S. work record.
If you do not have enough U.S. credits to qualify on your own, the Canada–U.S. agreement may allow your Canadian coverage to be considered in determining your eligibility for a partial U.S. benefit. To use Canadian credits toward U.S. eligibility, however, you generally need at least six U.S. Social Security credits.
Think of it like having two sets of building blocks. Your U.S. work history may not contain enough blocks to build the required structure by itself. In certain circumstances, the agreement allows your Canadian coverage to help complete it but you still need a minimum foundation of U.S. credits.
Importantly, using Canadian credits to help establish eligibility does not mean those Canadian contributions are converted into U.S. Social Security contributions. Each country calculates and pays its own benefit under its respective rules.
Can You Collect Both Social Security and CPP?
Yes. If you qualify for both programs, you can generally receive CPP and U.S. Social Security at the same time.
And there has been a significant change to how those benefits interact.
Previously, someone receiving CPP could potentially have their U.S. Social Security benefit reduced under the Windfall Elimination Provision (WEP) because CPP was a pension arising from employment that was not covered by the U.S. Social Security system.
That reduction no longer applies to Social Security benefits payable for January 2024 and later.
What Happened to the Windfall Elimination Provision (WEP)?
For years, WEP was an important consideration for people who divided their careers between Canada and the United States.
WEP modified the formula used to calculate Social Security benefits for certain workers who also received pensions based on employment where they did not pay U.S. Social Security taxes. CPP could fall within those rules.
That changed with the Social Security Fairness Act.
The legislation repealed both:
- Windfall Elimination Provision (WEP), which could reduce an individual's own Social Security retirement or disability benefit; and
- Government Pension Offset (GPO), which could reduce certain Social Security spousal or survivor benefits.
The Social Security Administration confirms that December 2023 was the final month for which WEP and GPO applied. They no longer apply to benefits payable for January 2024 and later.
For someone receiving both CPP and U.S. Social Security, this means CPP no longer causes a WEP reduction to Social Security benefits for these periods.
The change can be particularly important for people who previously had their Social Security benefits reduced because of CPP or another pension from employment not covered by U.S. Social Security.
If you were previously affected by WEP or GPO, or chose not to apply for a Social Security benefit because you expected one of these provisions to significantly reduce it, it may be worth reviewing your situation. Application and retroactivity rules still apply, so the repeal does not necessarily mean every individual will automatically receive benefits for prior periods.
Similarities Between Social Security and CPP
Although they are separate systems, CPP and Social Security have several similarities.
Both are employment-based public retirement programs in which your work and contribution history affect the retirement benefit you ultimately receive.
Both also give retirees flexibility over when benefits begin.
CPP retirement benefits can generally begin as early as age 60. Starting CPP before age 65 results in a lower monthly payment, while delaying it beyond age 65 can increase the monthly benefit, up to age 70.
U.S. Social Security retirement benefits can generally begin as early as age 62. Your full retirement age depends on your year of birth, and delaying benefits beyond full retirement age can increase your retirement benefit up to age 70.
This creates an important cross-border planning opportunity: just because you are eligible to begin CPP or Social Security does not necessarily mean you should start both at the same time.
What About Old Age Security (OAS)?
OAS works differently from CPP.
CPP is primarily based on contributions from employment or self-employment. OAS is generally based on age and Canadian residence history, subject to eligibility requirements.
Generally, an individual who is age 65 or older and meets the applicable Canadian residence requirements may qualify for some OAS. The amount of OAS received can depend on how long the individual lived in Canada after age 18, and higher-income recipients can also be subject to the OAS recovery tax, commonly called the OAS clawback.
The Canada–U.S. Social Security Agreement can also be relevant when someone does not independently satisfy Canada's OAS residence requirements. In certain circumstances, periods of U.S. Social Security coverage may be considered in establishing eligibility.
Can You Receive CPP and OAS While Living in the United States?
Potentially, yes.
CPP can generally be paid while you live outside Canada.
OAS can also be payable outside Canada, although different residence requirements apply when OAS is being paid to someone living abroad. The Canada–U.S. Social Security Agreement may also be relevant when determining eligibility.
Cross-border taxation is another consideration. The Canada–U.S. tax treaty contains specific provisions governing Social Security benefits paid by one country to a resident of the other.
For example, U.S. Social Security paid to a Canadian resident is generally taxable only in Canada under the treaty, and Canada generally provides a deduction equal to 15% of the U.S. Social Security benefit, resulting in 85% generally being included for Canadian tax purposes. Special rules may apply to certain long-time recipients.
The tax treatment of CPP and OAS for a U.S. resident should likewise be reviewed under the treaty and the individual's particular circumstances.
Working on Both Sides of the Border
The Canada–U.S. Social Security Agreement does more than help determine benefit eligibility. It also coordinates which country's social security system applies to certain cross-border workers.
This is designed, among other things, to reduce situations in which a worker and employer would otherwise be required to contribute to both systems on the same employment income.
The applicable rules depend on the nature of the employment, where the individual works, the employer and, in some cases, whether the assignment is temporary.
For cross-border workers, this is worth reviewing at the beginning of an international assignment rather than waiting until retirement.
When Should You Start CPP and Social Security?
Being eligible for a benefit and deciding when to claim it are two different questions.
The optimal timing of CPP and Social Security depends on several factors, including:
- your age and expected longevity;
- other retirement income;
- whether you are still working;
- your Canadian and U.S. tax situation;
- your spouse's benefits and work history;
- your cash-flow needs;
- your investment assets; and
- your broader estate and retirement-income plan.
Someone with benefits available in both countries should therefore avoid viewing CPP and Social Security decisions in isolation.
For example, delaying one benefit while drawing income from an RRSP, RRIF, IRA or other investment account could make sense in one situation but not another. Cross-border tax residency can add another layer to the decision.
Frequently Asked Questions (FAQ)
What happens if I don't have 40 U.S. Social Security credits?
You may still qualify.
Under the Canada–U.S. Social Security Agreement, Canadian coverage may be considered when determining eligibility for a partial U.S. Social Security benefit if you do not have enough U.S. credits on your own.
Generally, you need at least six U.S. credits before Canadian credits can be considered for this purpose.
You may also potentially qualify for benefits based on a spouse's, former spouse's or deceased spouse's work record, depending on the circumstances.
Does CPP still reduce my Social Security because of WEP?
No, not for benefits payable for January 2024 and later.
The Social Security Fairness Act repealed WEP. December 2023 was the last month for which WEP applied.
This is a significant change from the rules that existed when this article was originally published.
What happened to the Government Pension Offset?
The Social Security Fairness Act also repealed the Government Pension Offset (GPO).
GPO previously affected certain Social Security spouse and survivor benefits when the recipient also received a pension based on work that was not covered by U.S. Social Security.
Like WEP, GPO no longer applies to benefits payable for January 2024 and later.
What if my Social Security was previously reduced because of WEP?
The Social Security Administration has adjusted benefits for millions of people affected by the repeal and issued retroactive payments where applicable.
However, individuals who never applied for a benefit because they expected WEP or GPO to reduce or eliminate it may still need to submit an application. Normal Social Security application and retroactivity rules continue to apply.
If you think this applies to you, it is worth contacting the Social Security Administration to review your record and eligibility.
Can I continue working while receiving Social Security?
Yes, but if you claim Social Security before reaching full retirement age and continue working, the retirement earnings test may temporarily withhold some benefits when employment earnings exceed the applicable annual limit.
The earnings limit is indexed and can change each year, so it is important to check the current Social Security Administration threshold rather than relying on a historical figure.
Once you reach full retirement age, the retirement earnings test no longer applies.
Are Social Security benefits adjusted for inflation?
Yes. U.S. Social Security benefits are generally adjusted annually through a cost-of-living adjustment (COLA) based on inflation.
CPP and OAS are also indexed, although their adjustment mechanisms and timing differ from Social Security.
In Summary
If you've worked in both Canada and the United States, retirement planning can involve CPP, OAS and U.S. Social Security—and the interaction between the programs has changed significantly.
The biggest recent development is the repeal of the Windfall Elimination Provision and Government Pension Offset under the Social Security Fairness Act.
For benefits payable from January 2024 onward, receiving CPP or another pension from employment that was not covered by U.S. Social Security will no longer trigger a WEP or GPO reduction.
That removes a long-standing complication for many Canadians and Americans with careers on both sides of the border.
The Canada–U.S. Social Security Agreement remains important, particularly for individuals who do not have enough credits or years of coverage to independently meet certain benefit eligibility requirements.
But eligibility is only part of the equation. Deciding when to begin CPP, OAS and Social Security should be coordinated with your taxes, investments, retirement income and overall cross-border financial plan.
If you've worked in both countries or if your Social Security benefits were previously affected by WEP or GPO it may be a good time to revisit your retirement-income strategy.
Next Steps
If you are planning a move between Canada and the United States or need assistance coordinating your investments, retirement income, estate planning and portfolio management across the border, contact Snowbirds Wealth Management.
We specialize in Canada–U.S. cross-border financial planning and wealth management and work alongside experienced cross-border tax and legal professionals to help clients coordinate the different pieces of their financial lives.
About Snowbirds Wealth Management
Gerry Scott, Dean Moro and Carson Hamill are Portfolio Managers with Snowbirds Cross-Border Wealth Management. Snowbirds Cross-Border Wealth Management, a firm specializing in financial planning and investment management for individuals with ties to both Canada and the United States. They work closely with Americans living in Canada and Canadians residing in the U.S., helping clients navigate the complexities of cross-border investing, taxation, and wealth management. Licensed in both Canada and the United States, they provide integrated investment and planning strategies designed to help clients manage their wealth efficiently while minimizing cross-border tax exposure.
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