When it comes to retirement planning as an American or Canadian citizen, considering the Social Security Agreement between the two countries is essential.

The Social Security Agreement between Canada and the United States was established to prevent double taxation and to ensure that both countries` citizens receive their entitled social security benefits. The agreement covers old-age, survivor, and disability benefits under both countries` social security systems.

The agreement enables citizens of either country to qualify for social security benefits based on their overall contributions to their respective country`s social security programs. This means that individuals who have worked in both countries can combine their contributions to qualify for social security benefits.

For Canadian citizens who have worked in the United States and paid social security taxes, they can qualify for social security benefits, including retirement, disability, and survivor benefits. In contrast, American citizens who have worked in Canada are eligible for Canadian social security benefits if they have contributed to the Canadian Pension Plan.

To apply for Canadian social security benefits, American citizens must apply in writing for a certificate of coverage from the Social Security Administration (SSA) and submit it to Service Canada. Canadian citizens, on the other hand, should apply for their social security benefits through Service Canada.

It is essential to note that the social security agreement between Canada and the United States has specific rules and eligibility requirements. For example, for individuals to be eligible for benefits in either country, they must have contributed a minimum number of years to each country`s social security program. Moreover, the agreement does not cover government and military employees, railroad workers, and self-employed individuals.

In conclusion, for American or Canadian citizens who have worked in both countries, understanding the Social Security Agreement between Canada and the United States is critical to ensure they receive their entitled social security benefits. Anyone looking to apply for social security benefits should check with their country`s social security agency for eligibility requirements and how to apply.