To have a comfortable retirement, there are many financial considerations you need to plan for. Canada has a system that provides people, once they turn 65, with a monthly income to offset the costs of no longer working. The system includes the Canada Pension Plan (CPP), an individual’s personal savings or employer’s pension, and Old Age Security (OAS).
Check out these tax considerations for seniors.
What Is OAS And How Do You Qualify?
Old Age Security (OAS) is a taxable, monthly payment that you can receive from the Canadian government if you are 65 years of age or older. The payment is meant to help Canadians indiscriminately in their old age, so your employment history and current residence do not necessarily affect your eligibility. Here’s what you need to qualify for Old Age Security:
|If You’re Living in Canada||If You’re Living Outside of Canada||If You’re Working Outside of Canada for Canadian Employers|
|Age 65 years or older||Age 65 years or older||Returned to Canada within 6 months of ending employment|
|Canadian citizen or permanent residence at time of OAS application approval||Canadian citizen or permanent residence on the day before you left Canada||Turned 65 while employed and maintained residence in Canada while outside Canada|
|Resided in Canada for at least 10 years since the age of 18||Resided in Canada for at least 20 years since the age of 18||Provide proof of employment from the employer|
For more information on requirements, visit the Government of Canada’s Old Age Security webpage.
How Much Can You Recieve With OAS?
Your OAS payment amount is dependent on your income when you decide to start collecting OAS, and general living costs measured by the Consumer Price Index, as reviewed by the Government of Canada every January, April, October and December. OAS amounts are also dependent on how long you’ve lived in Canada.
Check out how an RRSP can help with retirement.
The maximum monthly pension amount for OAS was $685.50 monthly, and the maximum income for eligibility to receive OAS is $129,757. If you make more than the indicated maximum, you will be subject to the OAS Clawback, which mandates Canadians to pay all or some of their OAS back to the government.
Check out how your income is taxed in Canada.
What Are The OAS Payment Dates 2023?
The OAS payment schedule varies from year to year. Here are the dates on which you can expect to receive OAS and CPP this year:
|Old Age Security (OAS) Payment Dates 2023||Canada Pension Plan Payment Dates 2023|
|January 27, 2023||January 27, 2023|
|February 24, 2023||February 24, 2023|
|March 29, 2023||March 29, 2023|
|April 26, 2023||April 26, 2023|
|May 29, 2023||May 29, 2023|
|June 28, 2023||June 28, 2023|
|July 27, 2023||July 27, 2023|
|August 29, 2023||August 29, 2023|
|September 27, 2023||September 27, 2023|
|October 27, 2023||October 27, 2023|
|November 28, 2023||November 28, 2023|
|December 20, 2023||December 20, 2023|
For more information on payment dates for various benefits, visit the Government of Canada’s Benefits Payment page.
Process Of Obtaining OAS
To obtain OAS payments, you need to follow these 6 steps:
- Determine if you need to apply: You’ll receive a letter in the mail from the Government of Canada letting you know that you’ll be receiving OAS payments. Make sure to contact them if you haven’t received a letter a month after your 64th birthday.
- Decide when you want to start collecting OAS: You may choose to delay receiving OAS payments to receive a larger payment, or to ensure your eligibility by beginning collection on a year when your income is lower.
- Submit an application: You can submit an application online or by mail. Make sure you apply a month after your 64th birthday and ensure you have all the necessary information and documents required for your application.
- Look out for a response from the Government of Canada: The Government of Canada will send you a decision letter, or a request for more information. Your decision letter will tell you how much money you’ll collect each month, any past payments owed to you, as well as the date you’ll start collecting.
- Review your application status: You can either contact Service Canada or log into your My Service Canada account to review your application.
- Act if you disagree with the decision: You’ll need to request a decision review within 90 days of receiving your decision letter. If you are still unhappy with this subsequent review. You can appeal the decision with the Social Society Tribunal.
Old Age Security FAQs
Will I qualify for a higher OAS if I wait past 65?
What’s the difference between OAS and CPP?
Is OAS taxable?
What is the OAS clawback?
IS OAS enough for retirement?
Old Age Security is one financial support Canada has made available to people in retirement. Although it isn’t enough to live off of alone, you can supplement it with your personal savings, CPP and/or Canada’s Guaranteed Income Supplement.