After you retire you might be thinking of moving to a new city, province, or even country. There are a few things you need to consider as far as your LAPP pension goes.
How You Receive Your LAPP Pension (Cheque vs. Direct Deposit)
If you live within Canada or have a Canadian bank account, you can receive your LAPP pension via direct deposit.
If you live outside of Canada and do not have a Canadian bank account, you must receive your LAPP pension via cheque mailed to your home address. This cheque will be in Canadian funds.
You can review how you receive your pension payments and update your banking information on mypensionplan.ca at any time.
Income Tax Considerations
You can put your calculator away; taxes are already deducted from the monthly pension payment you receive. The income tax we deduct varies based on government requirements and what information you have provided, especially the Canadian province, territory, or country in which you reside.
If you move out of province or country, please update your information via mypensionplan.ca or contact us as soon as you can, so your provincial or out-of-country tax rate can be adjusted if needed.
If you live or intend to live outside of Canada:
It is important to know that many countries have tax agreements with the Government of Canada, which means your income may be taxed at a lower rate. You can find a listing of these agreements and tax rates on the Government of Canada's Benefits for Canadians Living Abroad page. If the country you are moving to or live in does not have a tax treaty with Canada, your LAPP pension will be taxed at a standard 25% rate.