Cross-Border Workers Are Missing Thousands in Social Security Benefits. Here’s Why.

The U.S.-Canada Social Security Totalization Agreement (1984) allows retirees to combine work credits from both countries to qualify for benefits in either system, even if they fall short of the 10-year minimum requirement.

Retirees with cross-border work history should apply through the SSA for a totalization claim rather than file separately, and they should decide claiming ages independently for each system since U.S. delayed credits and Canadian adjustment factors differ. Taking CPP at 65 while delaying U.S. Social Security to 70 often maximizes lifetime benefits.

A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more here .

A 65-year-old who spent eight years working in Toronto during his 30s, then built a 32-year career at a U.S. manufacturer, is ready to retire. He paid into both systems but assumes the Canadian years are lost because he heard you need 10 years of residence to collect from the Canada Pension Plan (CPP). He was wrong, and the difference is worth roughly $449 a month for the rest of his life.

This scenario comes up more than people realize. Forum threads from cross-border workers, snowbirds, and former expats often end with the same shrug: I guess those years don't count. They do qualify, but only because of a 1984 treaty most retirees have never heard of.

The U.S.-Canada Social Security Totalization Agreement lets the two countries pool work credits to qualify you for benefits in either system, even when you fall short of the minimum on your own. The CPP normally wants at least one valid contribution and meaningful residence history to pay a retirement pension. Eight years of Canadian contributions clears the contribution bar, and the agreement ensures Service Canada counts the U.S. working years as evidence of workforce attachment, allowing the claim to move forward.

Read: Data Shows One Habit Doubles American’s Savings And Boosts Retirement

Most Americans drastically underestimate how much they need to retire and overestimate how prepared they are. But data shows that people with one habit have more than double the savings of those who don’t.