What should be the next things to take care of after parents get their PRs?
- Thread starter Mananas
- Start date
They will only qualify for a pension if they have worked in Canada and contributed to CPP - or if they have worked in a country where Canada has a social security agreement in place. You can read more here:
https://www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-benefit/eligibility.html
Pension would be from home country. Haven’t paid into CPP. Apply for OHIP when the land. Look at what OHIP doesn’t pay for and budget health care costs (dental, eye, physio etc). Same for license And bank. Most likely need to take driving tests. Go on the Ontario government site and read through OHIP and drivers license steps.
When one applies and is accepted for the PGP one must factor in they might not qualify at all for receiving any pension , unless as noted above the country they are arriving from has a social security agreement with Canada AND they’ve contributed into it during their working period .
As for the OAS you have to look at eligibility.
https://www.canada.ca/en/employment-social-development/programs/old-age-security/reports/oas-toolkit.html#h2.1-h3.1
On occasion individuals aren’t eligible for any of the pensions . That’s when one MUST research to see if they can financially support the individuals they want to sponsor, prior to sponsorship.
If it’s not Government funded you’ll be on the hook for it.
The sponsoring family member will be the ones providing them with a “pension” unless they have their own savings. If under 65 they will also not qualify for things like highly subsidized prescription in many provinces. There is a huge cost associated with sponsoring a parent. LICO amount is not really enough to support extra family members especially seniors. For example if your parent needed to go into longterm care you would be responsible for a bed fee of around 1-1.5k/month. Most Canadian direct their pension funds to be used to cover the cost of the bed fee in LTC but if parents have been sponsored less than 20 years ago (10 years in QC) the sponsoring child will need to pay the monthly fee. As Canadians age they discover there are quite a lot of things that are not covered by government and it falls on people to pay out of pocket.
thanks for so many replies, few quick follow-up questions,
1: For OHIP, I see they need to be present here for 153 days on the website however, I read here they can apply for it once landed.
https://www.ontario.ca/page/apply-ohip-and-get-health-card
2: They're not eligible for a pension, but I can claim them as dependents and can use them in tax harvesting correct?
3: How is SIN helpful, if they're not going to work?
4: Any benefit of them having TFSA account?
1: For OHIP, I see they need to be present here for 153 days on the website however, I read here they can apply for it once landed.
https://www.ontario.ca/page/apply-ohip-and-get-health-card
2: They're not eligible for a pension, but I can claim them as dependents and can use them in tax harvesting correct?
3: How is SIN helpful, if they're not going to work?
4: Any benefit of them having TFSA account?
1. Yes, they can apply right away.
2. Yes, you can claim them as dependents provided they are living with you.
3. They would need one to file taxes and also for certain benefits. Also required for bank accounts. They should definitely get one.
4. It's a tax free savings account. So same benefit as you and they can certainly open one.
- Apply for Social Insurance Number (SIN): The Social Insurance Number is necessary for various activities in Canada, such as working, filing taxes, and accessing government benefits. Parents should apply for their SIN cards at their local Service Canada office.
- Healthcare Coverage: It is crucial to apply for provincial healthcare coverage, as each province has its own healthcare system. Parents should research the specific requirements and procedures for obtaining healthcare coverage in their province of residence.
- Register Children in School: If parents have school-aged children, they should enroll them in the appropriate school or educational institution. Research local schools, gather necessary documents, and complete the registration process.
- Set Up Banking and Financial Accounts: Parents should open bank accounts to manage their finances effectively. Research different financial institutions, compare services and fees, and select the most suitable option for their needs.
They should only apply for OHIP if they plan on meeting the residency requirement which is being present in Ontario for the first 5 out or 6 months and 6 out of the first 12 months as well as make Ontario their permanent home. Being present for 153 days out of the year is only for subsequent years not the first year. If they don’t meet their residency requirement one year they must reapply for OHIP even if they have a valid card. To qualify for OHIP you need to meet the residency requirement and have a valid OHIP card.