The Old Age Security (OAS) pension payment is one of Canada’s retirement income sources for seniors above 65. It is a monthly taxable benefit usually paid out in the last week of every month to eligible Canadian seniors who have lived in Canada after age 18.
OAS benefits are paid out through direct deposit or cheque by mail. It is considered taxable income and subject to a recovery tax if you exceed the income threshold.
So what are the next OAS payment dates for 2023? In this article, I will answer all your questions on the OAS pension payment dates, eligibility, and the application process.
Read on to learn more.
Old Age Security Payment Dates 2023
OAS pension benefits will be paid directly to your bank account on the scheduled OAS payment dates.
Here are the OAS payment dates for 2023:
- January 27, 2023
- February 24, 2023
- March 29, 2023
- April 26, 2023
- May 29, 2023
- June 28, 2023
- July 27, 2023
- August 29, 2023
- September 27, 2023
- October 27, 2023
- November 28, 2023
- December 20, 2023
You can receive the OAS pension through direct bank deposit or cheque, depending on your choice. If you choose to receive your payments by cheque, they may come in on or after the scheduled payment dates.
However, the Federal government of Canada has decided to switch from payment by cheque to direct deposits for all its payments and benefits. Quickly set up your direct deposit to your bank account by calling 1-800-277-9914. You can also do this online through your My Service Canada Account.
What is Old Age Security (OAS) Pension?
The OAS pension is a monthly payment paid by the Canada Revenue Agency (CRA) to eligible retirees aged 65 and above who have lived in Canada after 18. It is one of Canada’s main sources of retirement income for seniors; the others are the Guaranteed Income Supplement (GIS) and the Canada Pension Plan (CPP).
Like the CPP, OAS provides a taxable benefit to retirees to help them offset their living costs in Canada. You can receive the Guaranteed Income Supplement (GIS) as an additional allowance if you earn a modest retirement income.
However, unlike the CPP, where you need to contribute a portion of your earnings during your active working years to qualify, OAS does not have this requirement.
Meanwhile, your OAS pension can increase, reduce or cease based on your annual net retirement income.
Who is Eligible for Old Age Security?
To be eligible for the Old age security payment, you must meet the following requirements:
- Be 65 years old or older.
- Be a citizen or legal resident of Canada.
- Have lived in Canada for at least ten years after attaining the age of 18.
However, Canadian citizens or legal residents that are not currently in Canada can still receive the Old age security pension payment but must meet the following requirements:
- Be 65 years old or older.
- Must have lived in Canada as a Canadian citizen or a legal resident.
- Have lived in Canada for not less than 20 years, beginning at the age of 18.
How to Apply for the Old Age Security Pension
You may be contacted by the CRA about your eligibility ahead of the Old age security payment. However, if you’re not contacted, you can apply for the benefit once you meet the requirements.
But before then, you should ensure that you’re starting at the right time to avoid Old age security clawback. Once convinced that it’s the right time to apply for the OAS payment, you can submit an online or paper application.
- To apply online, register for a My Service Canada Account (MSCA). Ensure that you have all the required information before starting the registration because there’s no option for pausing or saving it to continue later.
Additionally, each registration session elapses after 20 minutes of inactivity.
- To apply by mail, complete the form ISP-3550 and mail the filled forms to the nearest Service Canada office. You can use the Reference Guide (ISP-3550A) as a guide to complete the Application for the OAS and the GIS (ISP-3550) form.
After you have submitted the OAS application, wait for a couple of days, and the CRA will mail you a decision letter or request more information from you.
Accordingly, the decision letter will specify the following:
- How much you are entitled to per month.
- Your first payment date.
- Your previous eligible payments.
However, if you disagree with the CRA decision, you can request a review in written form within 90 days of the day you receive the decision later.
Finally, you can view your Old age security pension payment application status by:
- Visiting My Service Canada Account (MSCA).
- Reaching out to Service Canada
How Much Old Age Security Payments Will I Receive?
How much you get on OAS payments in 2023 depends on your years in Canada after you were 18, your income level, and your marital status.
In 2023, the maximum monthly OAS payment is $687.56 for seniors aged 65 to 74 and $756.32 for seniors aged 75 and older.
Each January, April, July, and October, the OAS pension payment is reviewed according to the Consumer Price Index. So the more the cost of living increases, your Old age security payment amount increases.
However, if your 2021 income exceeds $79,845, your OAS amount will reduce as you have to repay all or part of it.
You can delay your first payment to maximise your OAS amount. But you should remember that your other benefits will be delayed once you delay your OAS pension.
Old Age Security Clawback
You may have to repay your OAS payment in whole or in part if your previous year’s income exceeds the OAS limit. This is referred to as OAS clawback or OAS recovery tax.
So if your income exceeds $79,845 for the 2021 tax year, you will have to repay 15% of the excess income up to the maximum OAS amount you received.
For instance, your net income in 2022 was $90,000, with $79,845 as the OAS limit for that year; that’s:
$90,000 – $79,845 = $10,115.
$10,155 x 0.15 = $1,523.25
Thus, you will be required to repay $1,523.25 for the payment period of 2021.
How to Minimize OAS Clawback
Now that you know the implication of Old age security clawback, you must learn how to minimise their chances. Here are three practical tips to help you minimise your OAS clawback and maximise your payment.
1. Split Your Income
One practical way to minimise clawback is to split your income with your spouse or common-law partner. How much you can split depends on your net income and retirement benefits.
It could be up 20%, 30%, or even 50%. The aim is to have your income below the OAS threshold.
2. Invest
By investing in different securities and building your portfolio, your income is likely to meet the OAS threshold.
Also, investing in a tax-free savings account and registered retirement accounts will reduce your net income while also helping you maximise your retirement income.
Thus, even if you can’t invest in other securities, you should consider investing in TFSA and RRSP accounts while receiving the OAS payment.
3. Delay Your OAS Payment
Another smart way to reduce the OAS clawback is to delay your first OAS payment. As mentioned, you can start collecting the OAS payment the following month you turn 65, but delaying up to 5 years can maximise your benefit.
However, you shouldn’t delay your OAS payment beyond 70 years; else, you will lose a great deal. This is because the more you exceed 70 years, your benefit reduces.
> Check out these 10 ways to Avoid OAS Clawback
Old Age Security Pension Supplement
You may also receive a Guaranteed Income Supplement (GIS) alongside the OAS pension on the OAS payment dates if you are a low-income senior.
However, to qualify for the Guaranteed Income Supplement amount, you must meet the following requirements:
- Reach the age of 65 or above
- Live in Canada
- Be entitled to the OAS payment
- Have less than $18,984 and are widowed, divorced, or single.
- Your income combined with your spouse or common-law partner’s income is less than $25,104 (if they are entitled to the full OAS amount), $45,504 (if they are entitled to a partial OAS amount), or $45,504 (if they’re entitled to the Allowance).
Moreover, the GIS application is processed simultaneously with the OAS application.
Final Thoughts on OAS Payment Dates
The OAS pension is available to all eligible Canadian seniors over 65. It offers monthly financial security to seniors after they retire from active work.
So plan ahead for your retirement as you look forward to receiving the OAS pension payment on the scheduled dates.
FAQs on OAS Payment Dates
How Much is Old Age Pension in Canada?
There’s no fixed amount on the Old Age Security (OAS) pension. How much you get depends on your marital status, income, and how long you have resided in Canada upon reaching 18 years.
What is the Income Limit for OAS?
The income limit for OAS refers to the maximum income you’re eligible to receive the OAS payment.
Is the OAS Taxable?
Yes. The OAS payments are taxable, so you’re expected to include the amount when filing your taxes. Thus, you can notify the CRA to deduct taxes per your OAS monthly payments or file your income tax per quarter. Contact the Canada Revenue Agency (CRA) Tax Services Office to learn more
Hi, I'm Adeola Adegoke. I am a licensed Insurance Broker in Manitoba, and I hold a master’s degree in Mathematical Sciences (with a major in Financial Modeling) from the African Institute for Mathematical Sciences (AIMS), Tanzania.
Also, I have a second master's degree in Statistics from the University of Regina, and I am currently pursuing my Ph.D. in Statistics at the University of Manitoba.
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